Major Industries in PEI: Exploring Economic Pillars

Prince Edward Island, Canada’s smallest province, punches above its weight when it comes to economic diversity and opportunity. The island’s economy is driven by several key industries that leverage its natural resources, skilled workforce, and strategic location.
According to the 2024 Prince Edward Island Paper on the Economy, the P.E.I. Finance projects that the Island economy will expand by about 4% in 2024, following an estimated 2.7% performance in 2023. The Island economy in 2024 will continue to benefit from recognizable drivers such as population and employment growth, construction activity, and a robust tourism sector.
As we explore the major industries driving Prince Edward Island’s economy, it’s clear that this small province offers big opportunities for businesses and workers alike.
Overview of Prince Edward Island’s Economy
Prince Edward Island has a dynamic and diverse economy. You’ll find that seafood remains a significant player, with the province known for high-quality products like mussels, lobster, oysters, and clams. This industry includes commercial fishing, aquaculture, and processing sectors, which collectively contribute greatly to the economy.
In 2023, the island’s Gross Domestic Product increased by 2.2%, showcasing growth across various sectors. Thirteen out of the twenty major industry groups saw increases. The service-producing industries experienced a growth of 3.0%, while goods-producing industries saw a modest increase of 0.2%.
The population of PEI as of July 1, 2022, reached 170,688, a rise of 3.6% from the previous year. This growing population reflects the island’s appealing quality of life and economic opportunities.
Whether you’re interested in the seafood industry or the various other sectors contributing to the economy, you’ll find PEI’s economic landscape to be both vibrant and promising.
Major Industries in PEI
Here’s an overview of major industries in PEI:
1. Agriculture
The agriculture industry in Prince Edward Island thrives on potato farming, dairy production, and livestock and meat processing. Each of these areas plays a significant role in the Island’s economy and community life.
Potato Farming
Potato farming is a cornerstone of PEI’s agriculture, with the island being one of Canada’s top potato producers (21.6%). You can find vast fields dedicated to potato cultivation, covering large portions of the agricultural land.
Farmers focus on high-quality production, with potatoes being a major export item. Innovation in farming techniques and machinery has helped increase yield, ensuring sustainability and efficiency.
The climate and soil conditions on the island are perfect for growing potatoes, making this crop exceptionally valuable. Potato farming significantly contributes to both local food supply and the export market.
Dairy Production
Dairy production is another vital component of PEI’s agricultural sector. The island’s dairy farms are renowned for producing high-quality milk and dairy products.
Farmers often use advanced technologies and sustainable practices to ensure the health and productivity of their livestock. As a result, the dairy industry continues to thrive, supporting numerous families and communities.
Local dairy products, such as cheese and butter, are popular among residents and tourists alike. The emphasis on maintaining high standards means you can expect top-quality dairy products from PEI’s farms.
Livestock and Meat Processing
Livestock and meat processing also play a significant role in PEI’s agriculture. The island is home to various livestock farms, including those raising cattle, pigs, and poultry.
Local processing facilities work to ensure the meat is handled safely and efficiently, providing fresh and quality products to consumers. The meat processing industry not only supports local consumption but also contributes to exports.
Efforts such as PEI Livestock Strategy Program are made to increase productivity, resource capacity, environmental sustainability, revenue diversification and risk management. This commitment helps maintain a robust and ethical industry that benefits both farmers and consumers.
2. Fisheries and Aquaculture

Prince Edward Island’s fisheries and aquaculture sector is vital to its economy. This section highlights the island’s lobster fishing, shellfish cultivation, and fish processing industries.
Lobster Fishing
In Prince Edward Island, lobster fishing isn’t just a job – it’s a way of life. Every year, the lobster season brings in millions of dollars to the local economy. Fishermen use traditional methods, often involving family-owned operations that have been passed down through generations.
Lobsters from PEI are renowned for their quality. The cold Atlantic waters contribute to their sweet, tender meat. Sustainability practices are crucial. Regulations ensure that lobsters are harvested responsibly to maintain healthy populations. This focus on sustainability helps preserve the industry for future generations.
Shellfish Cultivation
Shellfish cultivation, particularly mussels and oysters, has seen significant growth. The island’s aquaculture sector has evolved from a small-scale operation into a major commercial industry. Mussels and oysters thrive in PEI’s pristine waters, making them a high-quality product.
Mussel farms use rope culture techniques, while oysters are often grown in cages. These methods ensure that the shellfish remain free from bottom sediment, enhancing their flavor. The industry has a landed value of $44 million, showcasing its economic impact. The commitment to maintaining clean waters and sustainable practices is essential for ongoing success.
Fish Processing
The fish processing sector in PEI is essential for adding value to locally harvested seafood. Processing facilities handle a variety of species, including lobster, mussels, oysters, and other seafood. These facilities are equipped with state-of-the-art technology to ensure the highest standards of food safety and quality.
Processed products range from fresh and frozen seafood to canned and smoked items. This diversity helps meet different market demands and extends the shelf life of perishable goods. Employment provided by the processing sector supports local communities, making it an integral part of the island’s economy.
Fish processing not only boosts the local economy but also enhances the global reputation of PEI seafood.
3. Aerospace and Defense
Prince Edward Island boasts a thriving aerospace and defense industry. This sector is supported by a skilled workforce, extensive infrastructure, and strategic partnerships with major global markets.
Aircraft Maintenance and Repair
PEI excels in aircraft maintenance and repair. The region features facilities like Slemon Park, which provide expansive hangar space from 25,000 to 300,000 square feet. This site offers services such as an 8,000-foot runway and customized training programs.
Slemon Park’s infrastructure supports efficient aircraft engine maintenance and overhaul operations. Additionally, the industrial and residential facilities at the park create a conducive environment for businesses and employees alike.
The Island’s location offers easy access to major markets including Halifax, Montreal, Toronto, New York, and London. This advantage helps streamline transportation and logistics for maintenance operations.
Aerospace Manufacturing
Aerospace manufacturing is another key component of PEI’s economy. There are more than 15 aerospace companies operating on the island, focusing on aircraft part manufacturing. Advanced facilities such as the Airport Business Park in Charlottetown provide flexible airspace for seamless logistics.
This park features two well-equipped runways and customized building options to suit various business needs. Companies benefit from the local workforce’s specialized skills, supported by tailored training programs from institutions like Holland College.
Aerospace and Defence Industry in PEI benefits from competitive cost structures and Canada’s only aerospace tax rebate. These factors contribute to increased profitability and make the island an attractive location for aerospace manufacturers.
Defence Technology Services
PEI’s role in defense technology services is bolstered by the Government of Canada’s National Shipbuilding Procurement Strategy. The island’s strategic location and quality infrastructure support shipbuilding projects, offering components essential for these developments.
Facilities at Slemon Park and the Airport Business Park enable defense companies to operate efficiently. Both locations provide state-of-the-art amenities and excellent accessibility. The Airport Business Park, for instance, features a 24/7 flight service station operated by NAV Canada.
The island’s workforce is prepared through robust training programs that are constantly updated to meet the evolving needs of the defense industry. This commitment to skill development ensures your company can access highly trained personnel for defense technology services.
4. Bioscience
Prince Edward Island has blossomed into a hub for bioscience, focusing on diverse sectors such as biotechnology, pharmaceuticals, and nutraceuticals. Collaboration between industry, government, and academia drives innovation and growth.
Biotechnology
Biotechnology harnesses biological processes to create products and technologies that improve agriculture, health, and environmental sustainability. Companies like Somru BioScience Inc., BioVectra Inc. play a significant role, particularly in microbial fermentation with large-scale production capabilities.
The island’s universities also contribute by conducting cutting-edge research and training skilled professionals. Collaboration is a key factor, with entities like the PEI Bioscience Cluster fostering a cooperative environment where ideas and resources are shared.
Pharmaceuticals
Pharmaceuticals are another vital component of PEI’s bioscience landscape. Businesses here focus on developing and manufacturing active pharmaceutical ingredients and intermediates. The community benefits from significant investments, such as the $50 million BioAccelerator, which boosts biomanufacturing capacity.
This facility aims to enhance Canada’s pharmaceutical production infrastructure, ensuring that innovative treatments reach patients faster. The integration of local talent and global expertise aids in positioning PEI as a leader in this field.
Nutraceuticals
Nutraceuticals, which include products derived from food sources with extra health benefits, are gaining traction in PEI. The island provides an ideal environment for growing natural ingredients used in nutraceuticals. Research and development efforts focus on creating supplements and functional foods that promote health and wellness.
The PEI BioAlliance supports companies in this sector by providing resources and infrastructure, encouraging the growth and commercialization of nutraceutical products. This dynamic ecosystem allows for the development of innovative solutions addressing various health concerns.
5. Renewable Energy
Prince Edward Island is a leading region in renewable energy, particularly in wind energy and biomass production. This focus on sustainable initiatives is aimed at reducing dependency on imported fuels and embracing environmentally friendly energy solutions.

Wind Energy
PEI is known as the “Green Province” due to its leadership in wind energy. Over 30% of the island’s electrical needs are met by wind power, generated by provincially-owned and private wind farms. Significant installations include the Elmira and Hermanville wind farms, each with a capacity of 30 MW, and the North Cape wind farm at 10.6 MW.
Wind energy production on the island has been supported by the installation of new sub-sea cables across the Northumberland Strait, increasing the import capacity of electricity from 200 MW to 560 MW. This infrastructure enhancement not only boosts the island’s capacity but also ensures a reliable energy supply.
Biomass and Biofuel Production
Biomass and biofuel production in PEI contribute to the renewable energy landscape, although to a lesser extent than wind energy. Approximately 8.17% of the energy used in PEI comes from biofuels, including biomass. These biofuels serve as an alternative to the traditionally imported petroleum and natural gas.
The region is actively involved in leading-edge research through its Centres of Excellence, focusing on renewable biomass. This research aims to improve biofuel efficiency and develop new methods for biomass energy production. The clean energy sector in Atlantic Canada, which includes PEI, is growing rapidly, offering a promising future for biofuels as a sustainable energy source.
6. Information and Communication Technology
Prince Edward Island’s Information and Communications Technology sector is a robust and evolving landscape. From health care to gaming, the province is rich with opportunities for both investment and employment.
PEI’s digital economy grew almost 30% from 2010 to 2017, indicating a strong upward trend in this sector.
Key Areas in ICT
- Health Care: Innovations are constantly integrating technology to improve patient outcomes.
- Financial Services: Financial technology (fintech) is revolutionizing how you manage money and investments.
- Aerospace and Defence: Advanced technologies are critical in these high-stakes fields.
- Gaming: Video game development is booming, creating new jobs and opportunities.
- Cybersecurity: Essential for protecting data and privacy in a digital world.
Benefits of Working in ICT on PEI
- Innovative Environment: You’ll find a vibrant tech community fostering creativity and collaboration.
- Growth Potential: Consistent sector growth means ample job opportunities and career progression.
- Supportive Ecosystem: PEI offers a framework to support technology companies, ensuring sustainable growth.
Learn more about the growing ICT sector on PEI Information and Communications Technology profile. The province provides an advanced framework to support ICT growth, which includes biotech, managed services, and cleantech, making it an ideal place for tech companies and professionals alike.
7. Tourism
Prince Edward Island offers a vibrant tourism industry driven by its cultural attractions and eco-tourism opportunities. You will discover a unique blend of history, art, and nature that makes PEI a top destination for visitors.
Cultural Attractions
PEI is rich in cultural experiences that highlight its unique heritage. One major draw is the Anne of Green Gables Museum, which brings Lucy Maud Montgomery’s famous character to life. The island hosts several festivals and events year-round, such as the Charlottetown Festival, showcasing local theater and music.
You can also explore historical sites like the Province House National Historic Site, where the beginnings of Canadian Confederation were debated. Art lovers will appreciate the Confederation Centre Art Gallery, featuring works from Canadian artists. These cultural attractions play a significant role in drawing visitors to PEI and provide a deep dive into the island’s identity.
Eco-Tourism
PEI’s natural beauty is a major attraction for eco-tourism. The island boasts pristine beaches and picturesque trails, making it perfect for outdoor activities like hiking, kayaking, and bird-watching. The PEI National Park offers a mix of sand dunes, salt marshes, and forests, giving you a chance to connect with nature.
Agritourism is also popular, with farm tours and local food experiences that showcase sustainable practices. Whether you want to cycle along the Confederation Trail or explore the island’s unique landscapes, PEI offers a wealth of eco-friendly activities that highlight its natural charm.
8. Culture and Creative Industries
Prince Edward Island’s culture and creative industries are thriving. With strong support and various initiatives, these sectors are rapidly expanding.
The Government of Prince Edward Island has rolled out the Culture Action Plan to boost cultural initiatives and the creative economy. The plan includes strategic investments aimed at enhancing both the economic and social well-being of Islanders.
Key Components
- Arts Grants Program: Offers funding to artists through a juried application process.
- CreativePEI: Acts as a sector council, organizing networking, training, and advocacy for arts and culture professionals. Discover more at CreativePEI.
Opportunities
- Music PEI: Provides leadership roles and positions in the music industry, such as event coordination.
- Island Artists: The new five-year action plan, People, Place and Possibility, reaffirms PEI’s commitment to building a sustainable creative industry.
PEI’s culture and creative industries are a vibrant and essential part of the community, offering numerous opportunities for growth and development.
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About the author
Maurice