Food and Drink sector

An Expert's View about Food , Beverages and Tobacco in Canada

Posted on: 29 Mar 2012

Canada’s market for food and beverages is an estimated $84 billion in 2010 and is projected to grow at a rate of 4.6% annually through 2014.

Food and Drink sector in Canada Canada?s market for food and beverages is an estimated $84 billion in 2010 and is projected to grow at a rate of 4.6% annually through 2014. Market overview The grocery market is highly concentrated with the top five retailers accounting for 80% of total food sales: ? Comprised of over 21,200 food stores. ? Stores are large conventional supermarket and convenience store formats, and independents which are either franchised or unaffiliated. Beer and liquor stores and agencies sold $19.9 billion worth of alcoholic beverages during the fiscal year ending March 31, 2010, up 2.8% from the previous year. Beer remained the alcoholic drink of choice for Canadians. Spirits ? sales of $4.9 billion during the year ending March 31, 2010, up 0.7% from the previous year. This gain was mainly due to a 4.3% increase in vodka sales and a 3.0% gain in rum sales. Canada now ranks as the world's 5th biggest wine importing country by volume totaling 29 million cases in 2009; growth is expected to reach up to 35 million cases by 2014. Imported wines represented 72% of Canada's total wine consumption. Key opportunities Several fundamental trends will affect food & drink: ? Ethnic foods - Canadian society is culturally and ethnically diverse with a strong European, Asian and Southeast Asian roots. Immigration accounts for 60% of Canadian population growth and 16% of Canadians are ethnic minorities. Shoppers are demanding greater availability of ethnic foods, both at grocery stores and restaurants. ? Value - the Canadian consumer has been hit hard by the recent recession, although the food industry overall remained relatively unscathed. Lower priced private label items have gained market share with 38% of consumers reporting that they are more likely to buy more of these products. Although economic conditions are improving, consumers will likely remain cautious. ? Sustainability - consumers actively seek out sustainability food claims on food products across the entire supply chain, from farm to kitchen table, paying more attention to the amount packaging being used in food products, the environmental footprint of the ingredients and processes utilised to bring a particular product to the grocery shelf. ? Convenience - is influencing consumer food choices. Food retailers are responding to this demand by offering more in-store delis and ready to eat prepared foods such as salad, chicken, sushi, while food manufacturers have introduced an increasing selection of frozen and prepared meals for consumers seeking a quick meal from the grocery store. ? Boomers - have been big drivers of the healthy food trend, but as they reach into their 60s and 70s, they want more. One example: the easier-to-open jar called the ?Orbit?. Canada has an aging population with many seniors having a greater disposable income. ? Meat - Canada has relaxed restrictions regarding meat imports from Europe, all meat and poultry are eligible for market entry with the exception of Beef. Lamb has approved market access: The Canadian market currently relies on imports of chilled and frozen lamb from New Zealand and Australia, supported by fresh domestic lamb and live animals from the USA. There is a growing appetite for lamb as an alternative to other red meats, currently led by demand amongst immigrant groups. The Canadian market is currently under served by the quantity of fresh/ frozen lamb available for consumers. Latest export opportunities ? Food & Drink Latest export opportunities - Canada Getting into the market Within the Food & Drinks sector routes into the Canadian market it is recommended that most new entrants secure the services of a broker and/or local distributor who has representation nation-wide who understands the market landscape. Brokers and distributors are considered a one stop shop, providing guidance on best business practices, sales contacts, market and merchandising programs, logistics support and government regulations information. Specialty food products are procured through independent food retailers who specialise in the niche gourmet market. Labelling: All food packaged for consumer use and imported into Canada must comply with basic food labelling requirements; include the common name of the food, a list of ingredients and components, the name and address of the responsible party, a net quantity declaration in metric and a ?best before? date when required. All mandatory labelling information is required to be declared in both French and English. Additional information on labelling is available from Canadian Food Inspection Agency. More about doing business in Canada Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists based overseas - or contact your local international trade team. Valerie Strand, Trade Officer (Healthcare) British Consulate-General Toronto T: +1 416 593 1290 x 2229 E: Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events ? Food & Drink Major Events ? Canadian Restaurant and Foodservices Association ? Grocery Innovations ? SIAL Canada Useful links More about OMIS and other UKTI services for exporters
Posted: 29 March 2012

See more from Food , Beverages and Tobacco in Canada

Expert Views    
Retail Food Sector Report - Canada 2012   By Foreign Agricultural Service
An Overview of the Canadian Agriculture and Agri-Food System   By Agriculture and Agri-Food Canada
Hot Tips    
Canada Food and Agricultural Import Regulations and Standards   By Foreign Agricultural Service
Canada Grain and Feed   By Foreign Agricultural Service
Canada Food Exporter Guide Annual Report 2009   By Foreign Agricultural Service