Canada Ecommerce Market: Market Size & Forecast 2026

The Canadian e-commerce market encompasses online retail transactions across business-to-consumer and business-to-business channels, spanning sectors such as electronics, apparel, groceries, and home goods. With a market value of approximately $41.79 billion in 2025, the industry is positioned within North America's broader digital commerce ecosystem alongside the significantly larger U.S. market. The sector operates across multiple platforms including desktop websites, mobile applications, and social commerce channels, serving a population of roughly 40 million people with high internet connectivity rates.

• •Market valued at approximately $41.79 billion USD in 2025 with a projected 9.86% compound annual growth rate
• •E-commerce penetration stands at approximately 5.7% of total Canadian retail sales as of November 2025 according to Statistics Canada
• •The market spans B2C and B2B segments across electronics, apparel, groceries, home goods, and services

Rising internet penetration and widespread smartphone adoption have expanded the addressable online consumer base across urban and suburban markets in Canada. The COVID-19 pandemic accelerated digital transformation among traditional brick-and-mortar retailers who established or enhanced their e-commerce capabilities to meet shifting consumer behavior. Additionally, improving logistics infrastructure, including same-day and next-day delivery options, has reduced friction in the online shopping experience and increased consumer confidence.

• •Increasing internet and mobile device penetration across Canadian households enabling broader market access
• •Legacy retailers digitizing operations and adopting omnichannel strategies post-pandemic
• •Enhanced payment security, logistics networks, and delivery speed reducing barriers to online purchase

The market is segmented primarily by business model into B2C and B2B e-commerce, with B2C representing the larger consumer-facing segment driven by individual shoppers purchasing goods and services online. Device-based segmentation shows a growing share from mobile commerce as smartphones become the primary browsing and purchasing channel for many consumers. Geographically, Ontario and British Columbia lead in e-commerce adoption due to higher population density and urban concentration, while Prairie provinces and Atlantic Canada are experiencing accelerating growth as infrastructure improves.

• •B2C segment dominates market share, with growing B2B adoption among small and medium enterprises digitizing procurement
• •Mobile commerce gaining increasing share of transactions as smartphones become primary shopping devices
• •Ontario and British Columbia represent the largest regional markets, with Prairies and Atlantic Canada showing accelerating adoption rates

What are the recent trends and outlook?

Looking forward, the market is expected to sustain its 9.86% CAGR trajectory as e-commerce continues capturing share from traditional retail, potentially approaching double-digit penetration rates over the forecast period. Social commerce and live-stream shopping are emerging channels, particularly among younger demographics, while artificial intelligence and personalization technologies are reshaping product discovery and customer service. Regulatory developments around data privacy, cross-border commerce, and digital taxation will also influence market dynamics and operational strategies for participants.

• •E-commerce penetration expected to grow significantly from the current 5.7%, with some forecasts projecting up to 12% of total retail
• •AI-driven personalization, social commerce integration, and voice-activated shopping emerging as key innovation areas
• •Regulatory evolution around data privacy (PIPEDA modernization) and cross-border commerce will shape market operations