Craft Sector Survey 2025

Atlantic Canada Sector Analysis: Executive Summary

Small-scale manufacturing remains a cornerstone of Atlantic Canada’s economy, embodying both cultural vitality and economic resilience. The sector encompasses a diverse range of producers, from one-person micro-businesses and craft-based entrepreneurs to mid-sized studios and production companies, whose outputs include apparel, jewellery, gourmet foods, Indigenous craft, fine art, eco-friendly products, and wellness goods. While many makers begin as hobbyists or part-time producers, increasing numbers are scaling to professional enterprises with both national and international reach.

The 2025 survey, undertaken with 209 respondents, highlights significant shifts since the last sectoral analysis in 2019. Most striking is the growth of the workforce, which expanded from roughly 4,490 workers in 2016 (reported in the 2019 survey) to over 6,200 workers by 2021, with continued growth through 2024. Women continue to outnumber men nearly two to one, though the gender gap varies across provinces. Nova Scotia and New Brunswick show the strongest expansion, while Prince Edward Island and Newfoundland and Labrador maintain smaller but highly distinctive craft economies.

In trade terms, exports have risen from CAD 56.2 million in 2020 to CAD 80.6 million in 2024 in the overall Canadian consumer product and small-manufacturing sector. Although specific data for the Atlantic craft sector is not separately recorded by Statistics Canada, the 2025 survey shows that only 46% of respondents export outside Canada, mostly in small quantities under $5,000 annually. The United States remains the largest export destination, though producers are increasingly seeking diversification into markets such as Mexico, France, Germany, and Trinidad and Tobago, where trade with the U.S. has faced new barriers. Conversely, exports to China and the Netherlands have declined, reflecting the fragility of international connections in light of new U.S. tariff systems and shifting political and economic agreements.

Distinctive product categories, particularly Indigenous art, gourmet foods, and handmade jewellery, continue to show strong potential in global markets.

Overall, the 2025 survey depicts a sector that is increasingly professionalized, outward-looking, and technologically enabled. E-commerce has become a standard route to market, social media facilitates direct-to-consumer relationships, and associations and informal networks provide vital support. Yet persistent challenges remain, including high shipping and trade show costs, supply chain instability, market saturation within the region, regulatory barriers, and the difficulty of scaling micro-enterprises into stable small and medium-sized businesses.

This report presents the 2025 survey findings, offers comparative analysis with 2019 results, and provides insights and recommendations aimed at strengthening the sector and informing future development opportunities. It should be noted that the data does not represent the full scope of the craft sector in Atlantic Canada. Certain rural and northern producers – often operating in isolation or without digital access – were not captured in the survey or may not identify as producers when reporting through Statistics Canada census data.

Since February 2025, Atlantic Canada’s consumer-products sector has come under severe pressure from external trade policies. The sudden escalation of U.S. tariffs has significantly increased input costs, directly impacting the creation, development, and profitability of small producers who lack the financial cushion to absorb these hikes. According to the Canadian Crafts Federation’s 2025 Tariff Survey, 78% of small independent businesses, already vulnerable within an unstable creative economy, have been adversely affected by rising costs linked to tariffs and economic instability.

Compounding these challenges, the elimination of the de minimis exemption in August 2025 disrupted a vital sales channel. Canadian producers who previously relied on low-value shipments to reach U.S. customers now face duties, brokerage, and inspection fees on every parcel, rendering many transactions unviable. This change has hindered both B2B and B2C sales across the country. In 2024, Statistics Canada reported exports to the U.S. from Atlantic producers at $59.9 million; forecasts indicate a 5.5% decline in 2025. Canadian Heritage (PCH) estimates that with a 25% U.S. tariff, exports could fall by $736 million to $1.5 billion: an 11% to 22% reduction in all Canadian craft exports globally.

For small-scale producers, especially those operating online, these conditions have led to cancelled orders, delayed deliveries, and in some cases, a full suspension of cross-border sales.

These shocks are intensified by the region’s heavy dependence on the U.S. market. As of 2022, nearly 89% of Canadian craft exports in this sector were destined for the U.S., a concentration that leaves Atlantic producers particularly exposed to American trade policy fluctuations. The cumulative effects have been severe, undermining long-term confidence, threatening business viability, and destabilizing rural and cultural economies across Atlantic Canada.

The 2025 survey provides an essential snapshot of a rapidly evolving sector facing both opportunities and vulnerabilities. By capturing current data on employment, trade activity, and emerging barriers, it fills a critical information gap left by national datasets that often overlook micro and small producers. The findings offer not only a foundation for evidence- based policy and funding decisions but also a roadmap for supporting future growth, diversification, and resilience within Atlantic Canada’s craft and small manufacturing community. In a time of unprecedented global trade disruption, the survey stands as a vital tool for understanding the sector’s real conditions and shaping strategies that ensure its continued contribution to the region’s economy and cultural identity.