Customized Report Service – Canadian poultry 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, and it 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, an increase of a CAGR of 1.1% (2017-2021). While, per capita consumption of poultry by Canadian consumers was 35.8 kilograms in 2021, up from 33.4 kilograms in 2017, and it is projected to increase to 37.0 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), an increase of 2.5% from Can$13.4 billion (2.6 million tonnes) in 2017. Poultry meat was the leading category in terms of sales that year with Can$4.9 billion (1.4 million tonnes), followed by beef and veal (Can$4.7 billion/692.2 thousand tonnes). During the 2017-2021 period, sales of poultry meat recorded the largest sales growth with a CAGR of 4.2%. Sales of fresh meat is forecast to grow by 2.7% during the 2022-2026 period, 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 with 3.6%.

In 2021, sales of poultry meat were valued at Can$4.9 billion , an increase of 4.2% from 2017. During the 2017-2021 period, volume sold of poultry meat increased from 1.2 million tonnes to 1.4 million tonnes, representing an increase of CAGR at 2.2%. Sales of poultry meat are forecast to grow by 3.6% during the 2022-2026 period and reach Can$6.0 billion (1.5million tonnes). Quantity of poultry meat sales is forecast to grow by a CAGR of 0.6% during this period.

Processed poultry meat

In 2021, retail sales of processed poultry meat (that is, chicken, duck, turkey) were valued at Can$1.1 billion (65.5 thousand tonnes). Processed poultry meat include products such as poultry-based burgers, sausages, breaded chicken fillets, mortadella, pâté, chicken wings in sauce, chicken drumsticks with seasoning, turkey with breadcrumb coating, duck à l'orange, turkey sausages, etc. From 2017 to 2021, sales of processed poultry meat grew by a CAGR of 4.4%, and quantity increased by 2.1%. In 2021, chilled processed poultry was the leading category with sales valued at Can$679.3 million (31.7 thousand tonnes), followed by frozen processed poultry (Can$392.1 million/32.7 thousand tonnes) and shelf table processed poultry (Can$13.7 million/1.1 thousand tonnes).

Retail sales increased across all processed poultry categories between 2017 and 2021. Sales of frozen processed poultry recorded the largest growth during this period, with a CAGR of 4.5%, followed by chilled processed poultry (4.4%) and shelf stable processed poultry (1.7%). For the 2022-2026 period, sales of processed poultry are forecast to grow by 1.6%. Sales of shelf stable processed poultry, chilled processed poultry and frozen processed poultry are forecast to grow by 0.4%, 2.0% and 0.9% respectively,

Between 2017 and 2021 quantity of processed poultry grow by 2.1%. During this period, quantity of frozen processed poultry meat recorded the largest growth with 2.6%, while quantity of shelf stable poultry and chilled processed poultry increase by 0.0% and 1.7% respectively. Quantity sold of processed poultry are forecast to decline across all categories between 2022-2026.

Competitive landscape

Company

In 2021, Maple Leaf Foods Inc was the leading company in term of processed poultry sales. The company was leading across all the categories. In 2021, the company held a share of 74.7% in the shelf stable processed poultry, a 33.1% share in the chilled processed poultry market and 39.4% in the Frozen processed poultry market. Between 2017 and 2021, the company's sales of chilled processed poultry grew by a CAGR of 5.4%, reaching Can$224.9 million in 2021. Olymel SEC/LP was the second leading company of chilled processed poultry in terms of sales with Can$118.3 million, representing a market share of 17.4%.

Brand

In the shelf stable processed poultry sector, the top three brands were Maple Leaf, Cordon Bleu, and Grace Bros/Myers. Grace Bros/Myers registered the highest market share growth at a CAGR of 1.9% from 2017 to 2021.

In the chilled processed poultry sector, the top three brands were Maple Leaf, Flamingo, and Schneider. Schneider registered the highest market share growth at a CAGR of 1.4% from 2017 to 2021.

In the frozen processed poultry sector, the top three brands were Schneider, Janes, and Maple Leaf. Schneider registered the highest market share growth at a CAGR of 0.1% from 2017 to 2021.

Product launch analysis

According to data from Mintel, 612 processed poultry products were launched in Canada between 2017 and 2021. Unflavored/plain, roasted/toasted, and barbecue/BBQ/barbacoa were top flavors of newly released processed poultry products launches while ethical-environmentally friendly package, no additives/preservatives, and ethical-recycling were top claims associated with processed poultry products released during the prescribed period. Western Family, PC President's Choice, and Maple Lodge Farms Zabiha Halal were the three brands with the most launches in the past five years.

There are five main trends in fresh and processed poultry sector that were identified in 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 which 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% Canadians are saying they have been cooking more with meat at home during the COVID-19 pandemic (Mintel, 2021). Convenient claims have seen an increase in launch activity in past years, mainly driven by microwavable 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 the no additives/preservatives, the all-natural launches have continued to increase. The 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 becoming more 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 remains 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 for 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 (eg recyclable packaging) and integrated the principles of regenerative agriculture into their production(Mintel, 2021). While it's yet to expand across mainstream meat production, regenerative farming aims to make animal agriculture part of the solution to climate change and help meat companies show commitment to the planet's future (Mintel, 2021). These initiatives give consumers reassurance 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 poultry meat trends
Global Analysis Report

Prepared by: Zhiduo Wang, Market Analyst

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