Customized Report Service – Canadian pork meat trends

Consumption and spending

Per capita consumption of meat by Canadian consumers was Can$601.1 in 2021, up from Can$523.9 in 2017. That number is projected to increase to Can$723.1 by 2026. In 2021, Canadian consumer expenditure on meat accounted for 20.5% of total food expenditure, representing a 1.1% increase in the CAGR (2017 to 2021). On the other hand, per capita consumption of pork by Canadian consumers was 15.9 kilograms in 2021, down from 16.4 kilograms in 2017, and is projected to decline to 15.6 kilograms by 2026.

Market size

Fresh meat

In 2021, retail sales of fresh meat in Canada were valued at Can$14.7 billion (2.8 million tonnes), representing a 2.5% increase in the CAGR over Can$13.4 billion (2.6 million tonnes) in 2017. Poultry meat was the leading category in terms of sales in 2021, with Can$4.9 billion (1.4 million tonnes), followed by beef and veal (Can$4.7 billion or 692.2 thousand tonnes). Between 2017 and 2021, sales of poultry meat recorded the largest growth, at a CAGR of 4.2%. Sales of fresh meat are forecast to grow by 2.7% between 2022 and 2026, and reach Can$16.9 billion (3.1 million tonnes) in 2026. During this period, sales of lamb, mutton and goat are forecast to record the largest growth, at 3.6%.

Pork meat was the third largest fresh meat category in terms of sales in 2021. Sales of pork meat were valued at Can$4.7 million (706.6 thousand tonnes), representing a 0.2% increase in the CAGR from 2017 to 2021. Between 2017 and 2021, the volume of pork meat sold increased from 637.0 thousand tonnes to 706.6 thousand tonnes, representing an increase of 2.6%. Sales of pork meat are forecast to grow by 1.6% between 2022 and 2026, and reach Can$5.1 billion (752.9 thousand tonnes). Pork meat sales are forecast to grow by a CAGR of 1.3% during this period.

Processed red meat

In 2021, retail sales of processed red meat (that is, beef, pork, lamb) were valued at Can$4.4 billion (710 thousand tonnes). Processed red meat includes products such as sausages, hot dogs, ham, corned beef, spam, luncheon meat, pâté, frankfurters, mortadella, salami, etc. From 2017 to 2021, sales of processed red meat grew by a CAGR of 3.4%, but quantity decreased by 1.5%. In 2021, chilled processed red meat was the leading category, with sales valued at Can$4.1 billion (573.4 thousand tonnes), followed by frozen processed red meat (Can$242.6 million or 126.8 thousand tonnes) and shelf stable processed red meat (Can$79.5 million or 10.5 thousand tonnes).

Retail sales increased across all processed red meat categories between 2017 and 2021. Sales of frozen processed red meat recorded the largest growth during this period, with a CAGR of 4.0%, followed by chilled processed red meat (3.4%) and shelf stable processed red meat (1.8%). Between 2022 and 2026, sales of processed red meat are forecast to grow by 2.1%. Sales of chilled processed red meat and frozen processed red meat are forecast to grow by 2.1% and 1.8% respectively, while sales of shelf stable processed red meat are expected to decline by 0.1%.

In terms of volume, the quantity sold decreased across all categories. Between 2017 and 2021, the quantity of processed red meat declined by 1.5%. During this period, the quantity of frozen processed red meat recorded the largest decline at 3.3%, while the quantity of chilled processed red meat and shelf stable processed red meat declined by 1.0% and 1.4% respectively. The quantity of processed red meat sold is forecast to grow by 1.0% between 2022 and 2026.

Competitive landscape

Company

In 2021, Maple Leaf Foods Inc. was the leading company in terms of processed red meat sales. The company led across all the sub-categories. The company held a share of 36.0% in the chilled processed red meat market, a 50.7% share in the frozen processed red meat market and 28.1% in the shelf stable processed red meat market. Between 2017 and 2021, the company's sales of chilled processed red meat grew by a CAGR of 4.9%, reaching Can$41.4 billion in 2021. Olymel SEC/LP was the second leading company of chilled processed red meat in terms of sales, at Can$370.2 million, representing a market share of 9.1% in 2021.

Maple Leaf Foods Inc. dominated the frozen processed red meat market in 2021, holding more than half of the entire market share. The company's sales increased by a CAGR of 4.5% between 2017 and 2021. Sales of frozen processed red meat from private label players grew by 3.5% during this period, reaching Can$37.1 million in 2021. The market share of private label players in the frozen processed red meat sector represented 15.3% in 2021.

Brand

In the chilled processed red meat sector, the top three brands were Maple Leaf, Schneider and Maple Lodge. Freybe registered the highest market share growth at a CAGR of 2.2% from 2017 to 2021.

In the frozen processed red meat sector, the top brands were Schneider and Maple Leaf. Maple Leaf registered the highest market share growth at a CAGR of 0.6% from 2017 to 2021.

In the shelf stable processed red meat sector, the top three brands were Maple Leaf, Grace Bros/Myer and Spam. Spam registered the highest market share growth at a CAGR of 2.7% from 2017 to 2021.

Product launch analysis

According to data from Mintel, 865 processed pork products were launched in Canada between 2017 and 2021. Sausage, sliced and bone-in pieces were top formats of newly released processed pork products. Low/no/reduced allergen, gluten free and no additives/preservatives were top claims associated with processed pork products released during the prescribed period. Western Family, Compliments and Marc Angelo are the three brands with the most launches in the past five years.

Five main trends in the fresh and processed meat sector were identified in the last two years.

Meat delivery subscriptions

As the COVID-19 pandemic is likely to have a long-term impact, Canadian consumers' health precautions could offer further growth potential for online meat delivery subscriptions. Ontario-based truLOCAL is one of the leading players in this space. The company experienced explosive growth in 2020 with its monthly meat delivery services and looked to further expand by growing organically and acquiring an e-commerce company in early 2021. Even once the threat of the pandemic wanes, increasingly busy consumers are likely to search for more convenient meal solutions online. (Euromonitor International 2021)

Convenience

The COVID-19 pandemic and associated quarantine measures have motivated consumers to change their cooking habits. According to Mintel, more than 50% of Canadians report cooking more with meat at home during the pandemic (Mintel 2021). Convenience claims have seen an increase in launch activity in past years, mainly driven by microwaveable claims. But meat and poultry brands are also innovating around easy-to-cook and easy-to-prepare methods, which can appeal to lockdown cooks.

Natural and hormone-free claims

According to Mintel, North America has the biggest market share of meat and poultry product launches promoting natural and free-from claims. While the natural claims are dominated by no additives/preservatives, all-natural launches have continued to increase. Free-from claims are vastly represented by hormone-free products as companies are trying to win the trust of consumers who are concerned about growth hormones or antibiotics (Mintel 2021).

Animal welfare

The welfare of farm animals remains a major concern for Canadian consumers who are increasingly worried about intensive animal farming and the conditions in which animals are reared, transported and slaughtered. A survey from Mintel found that 70% of Canadian adults would be willing to pay more for meat in order for animals to be treated more humanely (Mintel 2021). Despite these concerns, launches of meat and poultry products with animal welfare claims remain low in North America (Mintel 2021).

Regenerative farming

Meat and poultry brands in North America are currently embracing regenerative farming practices to offer more eco-friendly and animal welfare-conscious products. While many consumers in North America like the taste of meat and many see it as indispensable in a balanced diet, more consumers have become concerned about the environmental impact of raising red meat. Over the past year, a select number of forward-looking meat companies have ventured beyond the usual ecological commitments (e.g., recyclable packaging) and integrated the principles of regenerative agriculture into their production (Mintel 2021). While it has yet to expand across mainstream meat production, regenerative farming aims to make animal agriculture a part of the solution to climate change and help meat companies show their commitment to the planet's future (Mintel 2021). These initiatives reassure consumers that the animal protein they eat is sustainable to the environment.

Product examples

For more information

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Resources

• Euromonitor International, December 2021, Processed Meat, Seafood and Alternatives To Meat in Canada
• Mintel, January 2021, A year of innovation in meat & poultry, 2020
• Mintel, December 2021, A year of innovation in meat & poultry, 2021
• Mintel Global New Products Database, 2022
• OECD Data, May 2021, Meat consumption

Customized Report Service – Canadian pork meat trends
Global Analysis Report

Prepared by: Zhiduo Wang, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2022).

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