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Five Ways the 2016 Census Affects Marketers

February 15, 2018

Dr. Doug Norris Senior Vice President and Chief Demographer

Rupen Seoni Senior Vice President and Practice Leader

© 2018 Environics Analytics Today’s presenters

Dr. Doug Norris Rupen Seoni Senior Vice President and Chief Senior Vice President and Demographer Practice Leader

2 © 2018 Environics Analytics housekeeping

• Listen-only mode for attendees • Questions at the end. Use the Webex Q&A Feature in your Interface • Technical difficulties? 1-866-229-3239 • Presentation deck will be available environicsanalytics.com/webcasts

3 © 2018 Environics Analytics 1. Growth or decline? It Depends where you are

4 © 2018 Environics Analytics ’s Population increased by 1.7 million between 2011-2016

Census Population and Growth Rate, Canada Census Population (millions) Census Population Growth Rate (%) 40.0 16% 35.2 Population GrowthCensus Rate (%) 35.0 13.4 33.5 14% 31.6 28.8 30.0 30.0 27.3 12% 9.7 24.3 25.3 25.0 23.0 10% 21.6 20.0 7.8 7.9 20.0 18.2 8% 16.1 6.6 5.9 5.7 5.9 15.0 5.4 5.0 6% 4.0 4.0 10.0 4% Census (millions) Population 5.0 2%

0.0 0% 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016

Source: , various Censuses

© 2018 Environics Analytics Growth was highest in and

Population Growth Rate (%), Canada, and Territories, 2006-2011 and 2011-2016

2006 to 2011 2011 to 2016

12.7 11.6 11.6 10.8

8.3 7.0 6.7 6.3 5.8 5.8 5.9 5.7 5.2 5.6 % 5.0 4.6 4.7 3.3 3.2 2.9 1.9 1.8 0.9 1.0 0.0 0.8 0.2 -0.5 NU AB SK MB YK BC Canada ON QC PEI NL NWT NS NB

Source: Various Censuses

© 2018 Environics Analytics Growth in Alberta has declined, but it is still close to average

Population Growth

3.5% Alberta 3.0%

2.5%

2.0% 1.5% Saskatchewan Canada Canada Alberta 1.0% Ontario

0.5% 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Source: Statistics Canada, Demographic Estimates

7 © 2018 Environics Analytics big markets are getting bigger, while growth in rural areas slows

Population by Geography Growth Rate 2006-2011 2011-2016 Rural 17% 7.5 6.9 117 Medium Largest 6 4.9 4.8 Sized CMAs* 3.5 3.3 3.3 12% 47% % 1.4 Other 29 CMAs 6 29 117 Rural 24% Largest Other Medium CMAs* CMAs Sized

* , , , , -,

Source: Statistics Canada, various Censuses

© 2018 Environics Analytics 9 © 2018 Environics Analytics Source: Statistics Canada 2016 Census

© 2018 Environics Analytics 1. Growth or decline? It Depends Marketing implications where you are • Growth in Canada is very localized. Marketers shouldn’t make plans based on generalities

• Use data tailored to your specific market, trade , etc. to assess opportunities

11 © 2018 Environics Analytics Demographic estimates and projections

12 © 2018 Environics Analytics 2. It’s official: we’re old

13 © 2018 Environics Analytics Canada Now has More Seniors than Children

Percent of Population, Canada

Age 0-14 Age 65+

34 34 32 30 30 28 24.5 23 23.9 21 16.9 21.1 % 19 16.6 17 16.3 15 15.6 15.2 12 13 10 7 8 8 8 5 6

1921 1931 1941 1951 1961 1971 1981 1991 2001 2011 2016 2026 2036 2046

Source: Statistics Canada, 2016 Census; Medium projections

14 © 2018 Environics Analytics By 2046, one in Four will be 65 Years and older…

Percent of Population, Canada

Age 0-14 Age 65+

34 34 32 30 30 28 24.5 23 23.9 21 16.6 16.9 21.1 % 19 17 16.3 15 15.6 15.2 12 13 10 7 8 8 8 5 6

1921 1931 1941 1951 1961 1971 1981 1991 2001 2011 2016 2026 2036 2046

Source: Statistics Canada, 2016 Census; Medium projections

15 © 2018 Environics Analytics …And this trend will continue in the future

Projected Population Growth, 2016-2026, Canada Projected Population Growth, 2016-2036, Canada

2016-2026 2016-2036 111

72

% 40 % 29 10 4 18 8

Total Under 65 65+ 85+ Total Under 65 65+ 85+

Source: Statistics Canada, Medium Population Projections

16 © 2018 Environics Analytics Declines at some age groups

Percent Population Change 2011-2016, Canada

16.0 12 8 % 5 1.2 0.1 2.5 5 5 0.7 -3.0 -7 -12

Total 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55+

Age Groups

Source: Statistics Canada, 2016 Census

17 © 2018 Environics Analytics the suburbs are no longer only for young families; seniors are a growing segment in this market

2011-2016 Growth of Population 65+ Population Aged 65+, 2016 Suburbs City Suburbs

31.1 25.4 22.8 19.1 % % 16.0 16.7 15.6 15.5 15.8 13.1 13.5 9.0

Montreal GTA Vancouver Montreal GTA Vancouver

GTA = Source: Statistics Canada, 2016 Census

18 © 2018 Environics Analytics Older population had high growth and high increase in spending power

Growth in Population Distribution of After Tax Income, Growth in After Tax Income, 2006-2016 2015 2005-2015

35.9 35.4 Age 15-34 Age 55 + 20% 21.4 37% 19.9

% 11.2 % 8.0 Age 35-54 9.4 43% -2.2 All ages 15-34 35-54 55 + All ages 15-34 35-54 55 + Age groups Age groups

Source: Statistics Canada, 2016 Census

19 © 2018 Environics Analytics 2. it’s official: we’re old Marketing implications

• Rapid growth in senior population is expected to continue for the next decade, before it starts to level off

• Expect this generation of seniors to tend to stay in their suburban neighbourhoods as they age

• As the baby bust generation ages, there will be a “senior bust,” but it will be much less pronounced

20 © 2018 Environics Analytics Demographic estimates and projections

21 © 2018 Environics Analytics 3. The household has many versions

22 © 2018 Environics Analytics WHAT IS THE MOST COMMON HOUSEHOLD TYPE IN CANADA?

PARENTS W/KIDS, EMPTY NESTS, SINGLES, LONE-PARENT FAMILIES

23 © 2018 Environics Analytics A diversity of households

Types of Households, 2016 Change in Number of Households 2011-2016

Total 5.6 % Couple without children 6.9 Non-family Couple One-person 2 or more without Couple with children 1.5 28.2% persons children Lone-parent 5.0 4.1% 25.8% Multigenerational 11.6 Couple Other with Other census family 5.6 3.6% Lone- children parent Non-family 2+ persons 7.2 Multigenerational 26.5% 8.9% household One-person 8.1 2.9% 2016 Total Households: 14,072,080

Source: Statistics Canada, 2016 Census

24 © 2018 Environics Analytics Source: Statistics Canada 2016 Census

© 2018 Environics Analytics Older men and women have very different living arrangements

Living Arrangements of Older Adults Aged 65 and Over, Canada, 2016

Females Males 11 31 Couple in Private 46 18 household 47 57 66 63 74 17 With Others 76 76 34 9 15 12 Alone 20 % 12 38 % 7 33 7 6 6 28 37 18 24 In Collective 16 16 16 24 14 2 9 3 6 4 65-69 70-74 75-79 80-84 85 and 65-69 70-74 75-79 80-84 85 and Age Groups Over Age Groups Over

Source: Statistics Canada 2016 Census

26 © 2018 Environics Analytics 3. The household has many versions Marketing implications

• The nuclear family is the exception

• Household size is drifting downward, so population in an area will slowly fall unless additional households are formed

• More people will be living alone, combined with an aging population means more women living alone

27 © 2018 Environics Analytics 4. Cultural Diversity 2.0

28 © 2018 Environics Analytics Immigrants at highest level since 1931

Number and Proportion of Foreign-born Population in Canada, 1871 to 2036 Number Percentage 14,000,000 28.2 30% 26.7 25.2 23.7 12,000,000 25% 22.0 22.3 22.2 21.9 19.8 20.6 10,000,000 18.4 17.5 17.4 20% 16.1 16.0 16.1 8,000,000 15.6 15.3 15.6 13.9 14.7 13.3 13.0 15% 6,000,000 10% 4,000,000

2,000,000 5%

0 0% 1871 1881 1891 1901 1911 1921 1931 1941 1951 1961 1971 1981 1986 1991 1996 2001 2006 2011 2016 2021 2026 2031 2036

7,540,830 Total immigrants, 2016 356,000 Non-permanent residents, 2016 Source: Statistics Canada

© 2018 Environics Analytics Immigrant numbers will continue to increase

Number and Proportion of Foreign-born Population in Canada, 1871 to 2036 Number Percentage Actual Projected 14,000,000 28.2 30% 26.7 25.2 23.7 12,000,000 25% 22.0 22.3 22.2 21.9 19.8 20.6 10,000,000 18.4 17.5 17.4 20% 16.1 16.0 16.1 8,000,000 15.6 15.3 15.6 13.9 14.7 13.3 13.0 15% 6,000,000 10% 4,000,000

2,000,000 5%

0 0% 1871 1881 1891 1901 1911 1921 1931 1941 1951 1961 1971 1981 1986 1991 1996 2001 2006 2011 2016 2021 2026 2031 2036

7,540,830 Total immigrants, 2016 356,000 Non-permanent residents, 2016 Source: Statistics Canada Diversity projections

30 © 2018 Environics Analytics Immigrants spreading out across the country

Immigrants by , Canada Immigrants 2011-2016 Percent Change from 2001-2006 Ontario 472,200 -18.7 215,200 11.0 Alberta 207,800 100.4 175,600 -1.3 63,200 102.7 Saskatchewan 47,900 492.5 11,800 70.9 9,300 117.1 Newfoundland and Labrador 3,700 154.3 3,400 293.0

1,212,080 Total Canada 2011-2016 Percent change: 14.8%

Source: Statistics Canada, 2016 Census

© 2018 Environics Analytics Increased immigration from Syria, Iran and Philippines

Number of Immigrants 2011-2016, Percentage Change in Number of Immigrants, Top Countries of Birth 2006-2011 to 2011-2016 count Philippines 191,500 Syria 490.9 % India 169,300 Iran 56.4 China 139,800 Philippines 46.9 Iran 54,700 Nigeria 34.5 Pakistan 51,700 France 17.7 Syria 30,000 Pakistan 11.8 United States of America 40,000 India 9.7 France 26,500 China -7.5 United Kingdom 29,300 United States of America -13.7 Nigeria 19,000 United Kingdom -30.0

Source: Statistics Canada 2016 Census

32 © 2018 Environics Analytics degree of acculturation as reflected in time in Canada and language use is important in any ethnic marketing venture

Language Use other than English or French, Immigrants, Canada, 2016

Mother tongue-Other* Language spoken most often at home-Other Speaks only "Other" language at home

77.3 75.8 75.6 71.2

56.2 49.7 45.1 46.1 37.7 30.4 27.6 26.5 21.9 23.0 13.3

Before 1981 1981-1990 1991-2000 2001-2010 2011-2016

* Other refers to other than English or French Source: Statistics Canada, 2016 Census

© 2018 Environics Analytics population will continue to increase

Percent of the Population Visible Minority, CMAs, 2016, Canada

2016 Toronto 51 Ottawa - Gatineau 22 66 % Projected 2036 % 38 % 20 Vancouver 49 Windsor 62 34 K - C - W 19 Calgary 34 33 49 Hamilton 18 Abbotsford - Mission 29 27 43 18 Regina 25 Edmonton 28 42 17 25 26 46 17 35 Montréal 23 17 37 26 Canada 22 16 34 London 23

K-C-W is Kitchener - Cambridge - Waterloo

Source: Statistics Canada, 2016 Census

© 2018 Environics Analytics 35 © 2018 Environics Analytics Emerging young second generation with increasingly mixed identities

Percent of Population Visible Minority by Generation, 2016, Canada

First generation 2+ generations Total on top 28 27 27 27 4 22 7 21 13 1 7 % 22 15 1 13 1 23 20 20 15 14 14 12 6

All ages 0-14 15-24 25-34 35-44 45-54 55-64 65 + Age Groups

Source: Statistics Canada, 2016 Census

© 2018 Environics Analytics 4. Cultural Diversity 2.0 Marketing implications

• Visible minorities will be the majority in Toronto and Vancouver

• Diversity will be much more pronounced everywhere in the country

• For the next generation, diversity is the norm and they have mixed identities and influences

• “Multicultural marketing” will change and maybe not exist only as selective campaigns to reach a specific ethnicity

37 © 2018 Environics Analytics Environics Analytics’ authoritative Acculturation categories for Chinese segmentation system and South Asians

Demographic estimates and projections

38 © 2018 Environics Analytics 5. The future is female

39 © 2018 Environics Analytics Large gender gap for population under age 45

Percentage Population with Post Secondary Credentials, 2016 74 74 Total on top 67 64 63 66 58 54 55 41 37 University at bachelor 29 25 27 47 45 29 21 level or above 20 22 16 16 30 , CEGEP or % 23 22 20 8 21 30 31 17 13 university below 27 27 24 17 bachelors 14 14 15 16 16 16 Apprenticeship or 6 7 8 7 7 5 Male Female Male Female Male Female Male Female Male Female Male Female trades certificate or 25-34 25-34 35-44 35-44 45-54 45-54 55-64 55-64 65-74 65-74 75 + 75 + diploma 25-34 35-44 45-54 55-64 65-74 75 + Age Groups

Source: Statistics Canada, 2016 Census

40 © 2018 Environics Analytics Major gains in female representation in many professions

Female Representation in Selected Professions, 2016, Canada

Ages 54-64 Ages 25-34 at end Veterinarians 39.8 81.3 % General practitioners and family physicians 37.5 58.6 Optometrists 36.0 69.9 Biologists and related scientists 33.5 61.8 Lawyers and Quebec notaries 30.8 55.4 Specialist physicians 30.4 54.8 Photographers 26.8 65.0 Dentists 23.5 55.1 Architects 21.9 49.3 Chiropractors 17.9 52.2 Chemical engineers 10.3 34.5 50%

Source: Statistics Canada, 2016 Census

41 © 2018 Environics Analytics Higher income increases for women

Change in Median Total Income 2005-2015, Age 25-34, Canada

Male Female 46.5 41.0 36.1 33.4

25.1 21.0 19.8 19.0 19.7 15.8 16.0 16.4 % 15.0 13.5 12.4 11.0 11.3 5.4 6.3 5.2 9.0 -7.2 Canada NL PE NS NB QC ON MB SK AB BC Canada NL PE NS NB QC ON MB SK AB BC Median Income 2015, Canada Males $41,154 Females $32,942

Source: Various Censuses

© 2018 Environics Analytics In nearly a third of couples, women now have higher incomes

Percent of Couples Where a Female is the Higher Total Income Recipient, 2015, Canada

32.6 31.8 30.6 30.2 25.7

%

All ages 15-29 30-54 55-64 65 + Age of older person

Source: Statistics Canada 2016 Census

43 © 2018 Environics Analytics 5. The future is female Marketing implications

• Better education with more earning power and fewer women living with men will mean more decisions will be made by women

• Understand decision-making by men vs. women if your category is not currently catering to women

• Completely new opportunities may exist in growing numbers of female-only households

44 © 2018 Environics Analytics The five ways the census affects marketers

1. Growth or decline? It depends where you are

2. It’s official: we’re old

3. The household has many versions

4. Cultural Diversity 2.0

5. The future is female

45 © 2018 Environics Analytics Demographic estimates and projections Financial wealth estimates

Acculturation categories for Chinese Environics Analytics’ authoritative and South Asians segmentation system

Enhanced census data

46 © 2018 Environics Analytics Questions?

© 2018 Environics Analytics