Sector Trend Analysis – Packaged food trends in Canada

Note: This report includes forecasting data that is based on baseline historical data.

Executive summary

Canada's population at an estimate of 38.9 million in 2023, has historically increased by a compound annual growth rate (CAGR) of 1.2% over the last decade (2013 to 2023), and is expected to slow in growth by 0.7% over the forecast period (2023 to 2033) - despite a high increase in immigrants welcomed to the country until 2025. The country's urban population at 32.4 million in 2023, which has increased by a CAGR of 1.3% (2018 to 2023) is forecast to remain relatively stable over the next 10 years (+0.9%); reaching a total of 35.8 million, accounting for 83.4% of the country's total population in 2033.

The top 10 largest urban cities in Canada accounted for just shy of half of the population (48.1%) in 2023. Toronto is the biggest city at approximately 6.0 million people, followed by Montréal (4.0 million) and Vancouver (2.6 million) over the year.

Canada was the 10th largest global exporter of processed or value-added packaged agri-food and seafood products at exports of Can$48.0 billion, representing a trade surplus of Can$14.0 billion with imports from the world at Can$34.0 billion in 2022. The top five exported commodities in 2022, were bread and bakery products, low erucic acid canola oil (excluding crude), and fresh or chilled bovine meat (boneless) with total exports of value-added agri-food and seafood growing by a CAGR of 10.4% (2018 to 2022).

In 2023, retail sales of packaged food in Canada totaled Can$77.6 billion in current prices. Top categories with the highest sales included dairy (Can$16.6 billion), baked goods (Can$11.2 billion), and meals and soups (Can$9.1 billion). Common trends within all packaged food categories are focused around products that target the 'healthy-consciousness' consumer that consist of natural, fortified or functional ingredients. Plant-based or high in protein products are becoming high in demand, as well.

Price-sensitivity is of utmost importance, as food inflation in the country reached an all-time high in early 2023, and of which is expected to remain high for the unforeseeable future. Convenience, intriguing or culturally-inspired offerings are key factors to help maintain high demand and interest in the food or drink industry. E-commerce platforms have played a vital role in supporting retailers during lockdown periods, which have continued to gain a much higher retailer market share amongst all distribution channels in recent years.

 

Consumer profile

"Canada's population is projected to experience a substantial growth, driven by the government's ambitious immigration targets, aimed at welcoming 500,000 immigrant's annually until 2025.Footnote 1".

In 2022, Canada's population reached 38.9 million and has grew at a slow rate by a CAGR of 1.2% over the last decade (2013-2023). This population consisted of approximately 7.3 million of children under the age of 17, 14.2 million of young and middle youth adults (aged 18-44), 10.1 million of mid-lifers (aged 45-64), and 7.3 million of later lifers and seniors (aged 65+) in 2022. Canada's urban population accounted for 81.7% with the remainder 18.3% of the population residing in rural regions over last year.

Toronto has the largest urban population at 5.9 million people, accounting for 15.2% of the total population throughout Canada, followed by Montreal (10.1%), Vancouver (6.7%), Calgary (3.5%), and Edmonton (3.1%) in 2022. Out of the ten most populated urban regions in Canada, the National capital region (Ottawa - Gatineau) accounting for 2.7% of the total population in 2022, and is expected to increase at one of the highest CAGR by 1.0% (2022-2032) - along with a higher population growth in London - Ontario (1.2%) and Vancouver (1.0%).

Canada's population by main urban cities, 2022 to 2032
Rank Cities Population ('000) in 2022 Population ('000) in 2023 Population ('000) in 2032 CAGR* % 2022-2032
Total - rural population 7,106.2 7,186.5 7,137.0 0.04
Total - urban population 31,823.7 32,422.4 35,436.8 1.1
1 Toronto 5,908.0 5,951.3 6,398.9 0.7
2 Montreal 3,943.7 3,972.6 4,270.5 0.7
3 Vancouver 2,593.0 2,624.4 2,888.5 1.0
4 Calgary 1,362.1 1,372.4 1,477.2 0.7
5 Edmonton 1,204.6 1,216.4 1,323.9 0.9
6 Ottawa - Gatineau 1,069.6 1,083.2 1,195.6 1.0
7 Hamilton 792.1 799.4 867.3 0.8
8 Winnipeg 783.6 790.5 856.3 0.8
9 Quebec 776.2 781.3 836.4 0.7
10 London - Ontario 443.6 450.9 506.5 1.2
Subtotal - urban population (top 10) 18,876.5 19,042.4 20,621.1 0.8
Total - Canadian population 38,929.9 39,608.9 42,888.5 0.9

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

In 2022, out of approximately 15.3 million households, Canada's average household size was 2.5 persons with an average of 0.5 children per household. Single persons represented the largest demographic by 29.5%, followed by couples without children (25.6%), couples with children (25.1%), other blended families (11.1%), and single-parent families (8.7%). Home owners accounted for 63.9% of the population and 34.6% were renters living in apartments in 2022.

The median age of population was 41.0 in Canada in 2022. In Canada, the average gross income of population (aged 15+) was Can$66,952.1 with an annual median disposable income per household of Can$76,637.2 in 2022. The total Canadian average gross income was the lowest at Can$27,172.9 of population (aged 15-19) and on average peaked at Can$86,972.8 of population (aged 45-49). In Canada, middle class households consisted of 32.1% of the population. Out of a workforce of 84.4% of the total population (32.9 million people) in 2022, Canadians (Social Class C) bringing in a salary between (100-150%) of the average gross income (up to Can$100,428.2) accounted for 21.2% of the population, while 32.1% (Social Class D) made between (50-100% avg. income), and 26.5% (Social Class E) made less than 50% of average salary per year (<Can$33,476.1). On the upper end, 11.3% (Social Class B) of the population made a salary between (150-200% avg. income) and 8.8% of the population (Social Class A) made over 200% of average salary per year (>Can$133,904.2).

Exports

Canada was the 10th largest exporter of value-added processed packaged food and seafood products at a total value of Can$48.0 billion and a global market share of 3.6% in 2022. Canada is a net exporter of processed agri-food and seafood products with 2022 imports from the world at Can$34.0 billion, representing a trade surplus of Can$14.0 billion.

Canada's processed agri-food and seafood exports increased by a CAGR of 10.4% between 2018 and 2022. The top five exported commodities in 2022 at a total of Can$16.1 billion (33.4%) were bread and bakery products at Can$4.4 billion (9.1%), low erucic acid canola oil, excluding crude at Can$4.3 billion (8.9%), fresh or chilled bovine meat, boneless at Can$2.8 billion (5.9%), canola meal at Can$2.5 billion (5.2%), and Frozen French fries at Can$2.1 billion (4.3%). Key exporter countries over last year were the United States (Can$37.4 billion), China (Can$2.4 billion), Japan (Can$2.1 billion), Mexico (Can$1.4 billion), and the European Union (Can$931.6 million).

Retail sales - packaged food

In 2023, retail sales of packaged food products in Canada totalled Can$77.6 billion. Top categories with the highest sales included dairy (Can$16.6 billion), baked goods (Can$11.2 billion), meals and soups (Can$9.1 billion), and within the snacks category was savoury snacks (Can$6.6 billion). Albeit, categories that registered the highest 5-year compound annual growth rates (2018-2023) were plant-based dairy (9.4%) and edible oils (9.0%).

All packaged food categories, overall managed to recover during the post-COVID-19 period and registered moderate positive CAGRs between 2018 and 2023. Nevertheless, all categories are expected to slow down in growth mostly contributable to fluctuations in price hikes - at the exception of the baby food category, predicted to rebound once both manufacturers and the government works collaboratively together to address previous global supply chain challenges. Additionally, as Canadians return physically back to work and socialize in public more, snacks such as ice cream (CAGR: 6.3%), confectionery (5.5%), and sweet biscuits, snack bars and fruit snacks (4.3%) are forecast to grow (2023-2028) over historic values.

Retail sales in Canada - packaged food products, historical and forecast using current prices, Can$ millions
Category 2018 2023 CAGR* % 2018-2023 2024 2028 CAGR* % 2023-2028
Total - packaged foods 58,461.1 77,578.3 5.8 80,861.7 97,401.1 4.7
Cooking ingredients and meals 11,358.0 15,551.8 6.5 16,297.6 20,595.6 5.8
Edible oils 489.7 752.4 9.0 774.4 897.3 3.6
Meals and soups 6,488.1 9,147.9 7.1 9,631.4 12,674.9 6.7
Sauces, dips and condiments 3,637.8 4,686.9 5.2 4,902.4 5,876.4 4.6
Sweet spreads 742.4 964.5 5.4 989.5 1,146.9 3.5
Dairy products and alternatives 14,068.1 18,044.3 5.1 18,939.4 22,870.7 4.9
Baby food 641.6 704.6 1.9 720.7 826.2 3.2
Dairy 12,974.1 16,630.5 5.1 17,457.9 21,033.5 4.8
Plant-based dairy 452.4 709.3 9.4 760.8 1,011.0 7.3
Staple Foods 19,644.7 26,331.3 6.0 26,930.4 30,614.5 3.1
Baked goods 7,985.1 11,199.3 7.0 11,504.2 13,082.6 3.2
Breakfast cereals 1,377.1 1,700.2 4.3 1,719.9 1,839.3 1.6
Processed fruit and vegetables 2,119.4 2,812.5 5.8 2,854.1 3,241.1 2.9
Processed meat, seafood and alternatives 6,644.7 8,516.2 5.1 8,709.2 9,938.0 3.1
Rice, pasta and noodles 1,518.4 2,103.2 6.7 2,143.1 2,513.5 3.6
Snacks 13,390.3 17,650.9 5.7 18,694.3 23,320.3 5.7
Confectionery 4,544.8 5,866.0 5.2 6,223.9 7,666.6 5.5
Ice cream 1,553.2 2,071.9 5.9 2,198.1 2,813.5 6.3
Savoury snacks 4,759.8 6,620.1 6.8 7,034.0 9,014.9 6.4
Sweet biscuits, snack bars and fruit snacks 2,532.5 3,092.9 4.1 3,238.3 3,825.3 4.3

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

In 2023, leading retail companies (and top brands) in the packaged food category in Canada included Saputo Inc. (Dairyland, Neilson, Saputo) at a value of Can$3.6 billion and a 4.6% value share, PepsiCo Inc. (Tostitos, Quaker, Harvest Crunch) at Can$3.3 billion (4.3%), and the Kraft Heinz Company (Kraft, Heinz, Classico) at Can$3.2 billion (4.2%). Private labelled brands accounted for 13.0% at sales of Can$10.1 billion, with artisanal companies accounting for 5.0% (Can$3.8 billion) in 2023.

Top 10 companies and associated brands in the packaged food sector in Canada, 2023 by main category, company share
Company Top brand(s) Retail sales value (Can$ million) Market share %
Total - market share 77,578.3 100.0
Saputo Inc. Dairyland, Neilson, Saputo, Armstrong, Alexis de Portneuf, Stella, Nutrilait, Fraser Valley, Milk 2 Go, JOYYA, Vachon 3,600.6 4.6
PepsiCo Inc. Tostitos, Quaker, Harvest Crunch, Lay's, Doritos, Ruffles, Miss Vickie's, Smartfood, Fritos, Rold Gold, Stacy's Pita Chips, Twistos, Hickory Sticks, Cheetos, Crispy Minis, Cracker Jack, Chester's 3,300.7 4.3
Kraft Heinz Company Kraft, Heinz, Classico, Crave, Philadelphia, Miracle Whip, Catelli, HP, Renée's, Bull's Eye, Diana Sauce 3,240.8 4.2
Lactalis, Groupe Lactancia, Beatrice, Black Diamond, Iögo, Cracker Barrel, Astro, P'tit Quebec, Balderson, Cheez Whiz, Olympic, AMOOza!, Astro BioBest 3,218.9 4.1
Agropur Co-operative Agro-Alimentaire Sealtest, L'Extra, Natrel, Quebon, OKA 2,596.2 3.3
Maple Leaf Foods Inc. Schneiders, Maple Leaf, Maple Lodge, Lightlife 2,324.8 3.0
Mondelez International Inc. Cadbury (Dairy Milk), Ritz, Oreo, Premium, Halls, Chips Ahoy!, Trident/Dirol, Dentyne, Christie, Wheat Thins, Triscuit, Petit Beurre, Stride, Jet-Puffed, Toblerone, Clif, Peak Freans, Petit Ecolier, Maynard's, Trebor 1,917.0 2.5
Grupo Bimbo SAB de CV Demptster's, Vachon, Stonemill 1,674.9 2.2
Danone, Groupe Activia, Danone, Silk, Actimel, International Delight, Danino 1,248.0 1.6
Nestlé SA Stouffer's, Delissio, Market Place Cuisine, Coffee-mate, Gerber, Nestlé, Kit Kat, Drumstick, Coffee Crisp, Favourites, Smarties, Good North, Aero, Parlour, Polar, Black Magic, After Eight, Real Dairy, Sundae 1,235.2 1.6
Private label Private label 10,061.6 13.0
Artisanal Artisanal 3,846.5 5.0
Others Others 13,764.0 17.7
Subtotal - top ten companies 52,029.2 67.1
Source: Euromonitor, 2023

Dairy products and alternatives

Retail sales

In 2023, dairy in Canada totalled Can$16.6 billion or 92.2% of the dairy products and alternatives category, growing by a CAGR of 5.1% between 2018 and 2023. Cheese was the largest subsector within the dairy category increasing to Can$6.8 billion (41.2%), followed by drinking milk products dropping to Can$3.2 billion (19.2%), yoghurt and sour milk products increasing to Can$2.7 billion (16.0%), and butter and spreads increasing to Can$2.0 billion (12.0%) in 2023.

With the Canadian landscape registering its highest levels of inflation in recent years, marking notable food price increases that reached unprecedented heights in 2022 and into 2023, dairy products and alternatives were substantially hit with butter and spreads, as well as baby food, leading in terms of price escalation. As a result, many Canadian consumers looked for more affordable options like private label offerings, despite seeing a slight decline in prices in 2023.Footnote 1

While there was a decrease in drinking milk products from 2022 to 2023 (−3.4%), plant-based dairy has sustained its growth forecast into 2023. Trends in plant-based 'beyond milk alternatives' (alongside meat alternatives) have continued to gain traction, whereby plant-based cheese and yoghurt have also, expanded and have both experienced rapid growth. Many plant-based dairy players are vying for a competitive edge with the introduction of new product development innovations helping to expand the category, which in turn offers consumers an array of choices that are becoming more readily available in smaller grocery stores to larger establishments. Innovations in other dairy products are being introduced in efforts to re-engage consumers and inject novelty into well-established product segments such as offerings of immune-supportive and vitamin-enriched drinking yoghurt, shredded cheese with bacon, and the launch of butter balls. As the health-conscious trend is magnified more so post-COVID-19, manufacturers are aiming to steer away from high sugar content and are embracing healthier alternatives like higher fat butter and full-fat products, along with prioritizing clean labelling.Footnote 1

During the forecast period (2023-2028) in Canada, the dairy is expected to slightly slow down in overall value growth by a CAGR of 4.8%, which is largely attributed to price increases. Nevertheless, once inflation is actively brought under control, plant-based dairy and the dairy and dairy alternatives category as a whole is set for expansion, bolstered by sustained demand characterised by varying consumer preferences and the continued diversification of product offerings.Footnote 1

Canada - Retail sales of dairy products by category, historic Can$ millions - current prices
Category 2018 2019 2020 2021 2022 2023
Total - dairy 12,974.1 13,199.0 14,463.6 14,680.1 15,660.9 16,630.5
Butter and spreads 1,307.6 1,327.7 1,463.1 1,503.2 1,746.6 1,992.5
Cheese 4,776.6 4,921.0 5,556.2 5,886.2 6,333.2 6,849.9
Drinking milk products 3,383.4 3,414.9 3,616.5 3,365.7 3,313.1 3,200.8
Yoghurt and sour milk products 2,107.0 2,087.8 2,212.8 2,275.8 2,469.8 2,653.5
Other dairy 1,399.5 1,447.5 1,614.9 1,649.3 1,798.1 1,933.7
Source: Euromonitor International, 2023
Canada - Retail sales growth (%) of dairy products by category, historic
Category Annual growth % 2023/2022 CAGR* % 2018-2023 Total growth % 2018-2023
Total - dairy 6.2 5.1 28.2
Butter and spreads 14.1 8.8 52.4
Cheese 8.2 7.5 43.4
Drinking milk products −3.4 −1.1 −5.4
Yoghurt and sour milk products 7.4 4.7 25.9
Other dairy 7.5 6.7 38.2

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Canada - Retail sales of dairy products by category, forecast Can$ millions - current prices
Category 2023 2024 2025 2026 2027 2028
Total - dairy 16,630.5 17,457.9 18,295.7 19,170.3 20,083.4 21,033.5
Butter and spreads 1,992.5 2,098.9 2,190.5 2,283.0 2,377.9 2,480.3
Cheese 6,849.9 7,310.6 7,749.2 8,193.6 8,648.0 9,111.2
Drinking milk products 3,200.8 3,211.6 3,268.3 3,336.0 3,409.0 3,486.2
Yoghurt and sour milk products 2,653.5 2,792.0 2,934.8 3,092.9 3,267.9 3,458.7
Other dairy 1,933.7 2,044.8 2,152.8 2,264.9 2,380.6 2,497.1

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Canada - Retail sales growth (%) of dairy products by category, forecast
Category Annual growth % 2024/2023 CAGR* % 2023-2028 Total growth % 2023-2028
Total - dairy 5.0 4.8 26.5
Butter and spreads 5.3 4.5 24.5
Cheese 6.7 5.9 33.0
Drinking milk products 0.3 1.7 8.9
Yoghurt and sour milk products 5.2 5.4 30.3
Other dairy 5.7 5.2 29.1

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Competitive landscape - dairy

In 2023, leading retail companies (top brands) in the Canadian dairy category included Saputo Inc. (Dairyland, Neilson, Saputo) at a value of Can$3.6 billion (21.7%), The Lactalis Groupe (Lactantia, Beatrice, Black Diamond) at Can$3.2 billion (19.3%), and Agropur Co-operative Agro-Alimentaire (L'Extra, Natrel, Quebon) at Can$2.6 billion (15.5%). Private labelled dairy brands accounted for Can$1.3 billion (15.5%) of sales in 2023.

A noteworthy change within the dairy competitive landscape was Nestlé's divestiture to Perrigo Inc. of the Good Start baby milk formula brand, where Nestlé previously has been a significant player in this market. Additionally, Lactalis' Canada acquired Khaas, a specialty yogurt brand. Notable innovations by prominent brands in the growth of plant-based milk, cheese and yogurt alternatives categories include Danone's Silk (Nextmilk), Vitalite, Babybel, Two Bears, Yoggu, and Becel.Footnote 1

Canada's - Top 10 companies (brands) ofdairy products, 2023 retail value sales (US$ million) and market share - current prices
Company Top brand(s) Retail sales (US$ million) Market share % in 2023
Saputo Inc. Dairyland, Neilson, Saputo, Armstrong, Alex de Portneuf, Stella, Nutrilait, Fraser Valley, Milk 2 Go, JOYYA 3,600.6 21.7
Lactalis, Groupe Lactantia, Beatrice, Black Diamond, Iögo, Cracker Barrel, Astro, P'tit Quebec, Balderson, Cheez Whiz, Olympic, aMOOza!, Astro BioBest 3,213.4 19.3
Agropur Co-operative Agro-Alimentaire L'Extra, Natrel, Quebon, Sealtest, OKA 2,578.5 15.5
Kraft Heinz Company Kraft, Philadelphia, Jell-O, Velveeta 1,160.4 7.0
Danone, Groupe Danone, Activia, Actimel, International Delight, Danino 967.3 5.8
General Mills Inc. Yoplait, Liberté, Minigo 720.6 4.3
Upfield Holdings BV Becel, Imperial, I Can't Believe It's Not Butter 396.7 2.4
Gay Lea Foods Co-Operative Ltd. Gay Lea, Nordica 191.5 1.2
Arla Foods Amba Tre Stelle 109.7 0.7
Bel, Groupe Boursin 85.7 0.5
Private label Private label 1,313.4 7.9
Others Others 1,793.5 10.8
Total - dairy 16,630.5 100.0
Source: Euromonitor International, 2023

Retail distribution channels - dairy products and alternatives

In 2023, store-based retailing distribution of dairy products and alternatives totalled a market share of 94.8% mainly consisting of grocery retailers such as supermarkets (54.8%), hypermarkets (18.7%), small local grocers (9.2%), and discounters (6.8%). Non-store e-commerce retailing for dairy products and alternatives held a 5.2% market share, which has increased by a high CAGR of 79.2% from sales of Can$51.3 million in 2018 to Can$947.2 million in 2023.

As supermarkets and hypermarkets maintain their position as the primary choice for consumers seeking dairy products, a notable trend is the increasing popularity of discounters like Costco. Consumers are opting for bulk purchases to capitalize on potential savings over sporadic offer discounts from supermarkets and hypermarkets - primarily driven by the ongoing high levels of food inflation. Heightened sales for 'everyday or immediate need' food products are also occurring within General Merchandise and Dollar stores.Footnote 1

Retail distribution channels for dairy products and alternatives in Canada, by outlet type retail value sales (Can$ millions), current prices
Outlet type 2018 2023 CAGR* % 2018-2023
Actual Share % Actual Share %
Total - retail channels 14,068.1 100.0 18,044.3 100.0 5.1
Store-based retail - offline 14,016.8 99.6 17,097.1 94.8 4.1
Grocery retailers 13,778.3 97.9 16,801.4 93.1 4.0
Convenience retail stores (including forecourts) 329.1 2.3 345.4 1.9 1.0
Supermarkets 8,038.8 57.1 9,893.0 54.8 4.2
Hypermarkets 2,727.3 19.4 3,366.6 18.7 4.3
Discounters 1,033.2 7.3 1,222.5 6.8 3.4
Warehouse clubs 221.4 1.6 261.5 1.4 3.4
Food/drink tobacco specialists 44.6 0.3 58.5 0.3 5.6
Small local grocers 1,383.9 9.8 1,654.0 9.2 3.6
Non-grocery specialists 238.4 1.7 295.7 1.6 4.4
General merchandise stores 77.2 0.5 94.4 0.5 4.1
Health and beauty specialists 159.6 1.1 192.9 1.1 3.9
Other non-grocery retailers 1.7 0.0 8.3 0.0 37.3
Non-store retail - e-commerce 51.3 0.4 947.2 5.2 79.2

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Staple foods – baked goods

Retail sales

In 2023, baked goods were the 2nd largest packaged food segment at a total retail sales value of Can$11.2 billion in Canada, growing historically by a CAGR of 7.0% between 2018 and 2023. Bread was the largest subsector within the baked goods category to reach sales of Can$6.7 billion (59.5%), followed by pastries at Can$2.1 billion (12.2%), cakes at Can$1.2 billion (11.1%), dessert pies and tarts at Can$726.0 million (7.0%), frozen baked goods at Can$388.6 million (5.5%), and dessert mixes at Can$113.7 million (3.3%) in 2023.

Amidst high prices that have been soaring to record levels, sales of baked goods are set to contract in value and volume growth - particularly in the bread category. Consumers are seeking cost-saving options and when not purchasing in bulk, they are turning to smaller discount retailers like Dollarama. While affordability is a key concern, health-conscious consumers are increasingly looking for functionality and healthier options when it comes to baked goods. Whole wheat has been the staple choice over the years, yet emerging ingredients found in flatbread, leavened bread, and cakes - often considered 'functional and healthier alternatives' in the category - are products that are oat flour-based, gluten-free, and keto-friendly or plant-based options.Footnote 2

In the forecast period (2023 to 2028), baked goods are expected to gradually decline due to high prices and an increasingly health-conscious consumer base, focused on reduced-carb diets - particularly in the case of regular white bread (leavened or flat). Dessert mixes with its lack of nutrition are expected to decrease the most over the forecast period at a CAGR of −0.3%. Nevertheless, there are opportunities to strengthen the category as the plant-based trend is gaining momentum in Canada and manufacturers prioritize the introduction of better-for-you products. Artisinal bakers offering more options in the fresh bread segment, along with Canada's ambitious immigration plan are expected to strengthen the category. With an increased diversity of consumers, the baked goods category is set to see a growing number of foodservice outlets serving global cuisine and supermarkets are now stocking more ethnic food products (including naans, roti, tortillas, and new varieties of Agege bread from Nigeria).Footnote 2

Canada - Retail sales of baked goods by category, historic Can$ millions - current prices
Category 2018 2019 2020 2021 2022 2023
Total - baked goods 7,985.1 8,199.0 8,922.8 9,131.9 10,286.6 11,199.3
Bread 4,579.5 4,679.7 5,225.1 5,383.3 6,122.8 6,661.3
Cakes 997.1 1,013.8 1,033.6 1,056.7 1,164.5 1,242.5
Dessert mixes 97.5 96.6 105.6 103.9 110.1 113.7
Frozen baked goods 294.6 307.1 351.0 346.2 368.4 388.6
Pastries 1,455.8 1,517.7 1,574.3 1,611.9 1,842.4 2,067.2
Dessert pies and tarts 560.6 584.1 633.2 630.0 678.5 726.0
Source: Euromonitor International, 2023
Canada - Retail sales growth (%) of baked goods by category, historic
Category Annual growth % 2023/2022 CAGR* % 2018-2023 Total Growth % 2018-2023
Total - baked goods 8.9 7.0 40.3
Bread 8.8 7.8 45.5
Cakes 6.7 4.5 24.6
Dessert mixes 3.3 3.1 16.6
Frozen baked goods 5.5 5.7 31.9
Pastries 12.2 7.3 42.0
Dessert pies and tarts 7.0 5.3 29.5

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Canada - Retail sales of baked goods by category, forecast Can$ millions - current prices
Category 2023 2024 2025 2026 2027 2028
Total - baked goods 11,199.3 11,504.2 11,848.5 12,234.4 12,641.1 13,082.6
Bread 6,661.3 6,854.0 7,072.3 7,315.1 7,569.9 7,852.3
Cakes 1,242.5 1,243.3 1,257.6 1,285.8 1,324.6 1,373.1
Dessert mixes 113.7 113.0 112.3 111.9 111.9 112.1
Frozen baked goods 388.6 397.7 407.2 417.7 429.3 441.8
Pastries 2,067.2 2,141.4 2,219.8 2,301.4 2,380.8 2,456.2
Dessert pies and tarts 726.0 754.8 779.3 802.5 824.7 847.0
Source: Euromonitor International, 2023
Canada - Retail sales growth (%) of baked goods by category, forecast
Category Annual growth % 2024/2023 CAGR* % 2023-2028 Total growth % 2023-2028
Total - baked goods 2.7 3.2 16.8
Bread 2.9 3.3 17.9
Cakes 0.1 2.0 10.5
Dessert mixes −0.6 −0.3 −1.4
Frozen baked goods 2.3 2.6 13.7
Pastries 3.6 3.5 18.8
Dessert pies and tarts 4.0 3.1 16.7

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Competitive landscape - Baked goods

In 2023, leading retail companies (and top brands) in the baked goods category in Canada included Grupo Bimbo SAB de CV (Dempster's, Vachon, Stonemill) at sales of Can$1.7 billion (15.0%), George Weston Ltd. (Wonder Bread, Country Harvest, D'Italiano) at Can$980.0 million (8.8%), and FGF Brands Inc. (Casa Mendosa) at Can$181.6 million (1.6%). Artisanal bakers, however, brought in the highest share of sales value at Can$3.8 billion (34%), followed by private label baked good products that totalled Can$2.3 billion (20.2%) in 2023.

Rising prices are compelling consumers to down trade or turn to discount retailers like Dollarama for their grocery needs, including baked goods. Artisanal manufacturers are seeing a growing market share as independent bakeries and shops continue to emerge nationwide. A growing diversity in the Canadian population is speeding the growth in foodservice sales of baked goods and bakeries that are offering unique and new global flavours.Footnote 2

Canada's - Top 10 companies (brands) ofbaked goods, 2023 retail value sales (US$ million) and market share - current prices
Company Top brand(s) Retail sales (US$ million) Market share % in 2023
Grupo Bimbo SAB de CV Dempster's, Vachon, Stonemill 1,674.9 15.0
George Weston Ltd. Wonder Bread, Country Harvest, D'Italiano, Weston, All But Gluten, Casa Mendosa 980.0 8.8
FGF Brands Inc. Casa Mendosa 181.6 1.6
Kellogg Company Kellogg's Eggo, Kellogg's Pop-Tarts 181.3 1.6
Ozery Bakery/Pita Break Morning Rounds 86.2 0.8
General Mills Inc. Betty Crocker, Pillsbury 80.9 0.7
La Boulangerie St-Methode La Récolte de St-Méthode 79.1 0.7
Chudleigh's Ltd. Chudleigh's 49.2 0.4
McCain Foods Ltd. McCain 27.0 0.2
Hostess Brands LLC Hostess 24.5 0.2
Artisanal Artisanal 3,806.5 34.0
Private label Private label 2,267.0 20.2
Others Others 1,686.0 15.1
Total - baked goods 11,199.3 100.0
Source: Euromonitor International, 2023

Retail distribution channels - staple foods

In 2023, store-based retailing distribution of staple foods like baked good products totalled a market share of 95.5% mainly consisting of grocery retailers such as supermarkets (46.5%), hypermarkets (20.9%), small local grocers (9.9%), discounters (7.9%), and food/drink tobacco specialists (6.0%). Non-store e-commerce retailing for staple food products held a 4.5% market share, which has increased by a high CAGR of 94.2% from sales of Can$42.6 million in 2018 to Can$1.2 billion in 2023.

Retail distribution channels for staple foods in Canada, by outlet type retail value sales (Can$ millions), current prices
Outlet type 2018 2023 CAGR* % 2018-2023
Actual Share % Actual Share %
Total - retail channels 19,644.7 100.0 26,331.3 100.0 6.0
Store-based retail - offline 19,602.1 99.8 25,155.2 95.5 5.1
Grocery retailers 19,217.9 97.8 24,701.4 93.8 5.1
Convenience retail stores (including forecourts) 183.6 0.9 214.1 0.8 3.1
Supermarkets 9,463.7 48.2 12,250.5 46.5 5.3
Hypermarkets 4,350.6 22.1 5,514.3 20.9 4.9
Discounters 1,613.5 8.2 2,086.0 7.9 5.3
Warehouse clubs 363.9 1.9 451.7 1.7 4.4
Food/drink tobacco specialists 1,181.5 6.0 1,588.7 6.0 6.1
Small local grocers 2,061.2 10.5 2,596.1 9.9 4.7
Non-grocery specialists 384.2 2.0 453.8 1.7 3.4
General merchandise stores 289.7 1.5 347.0 1.3 3.7
Apparel and footwear specialists 16.7 0.1 20.0 0.1 3.7
Health and beauty specialists 58.7 0.3 71.1 0.3 3.9
Other non-grocery retailers 19.1 0.1 15.6 0.1 −4.0
Non-store retail - e-commerce 42.6 0.2 1,176.1 4.5 94.2

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Cooking ingredients – meals and soups

In 2023, the meals and soups category was the 3rd largest packaged food segment at a total retail sales value of Can$9.1 billion in Canada, growing historically by a CAGR of 7.1% between 2018 and 2023. Ready meals was the largest subsector within this category that reached sales of Can$4.4 billion (48%), followed by prepared salads at Can$1.5 billion (15.9%), food kits at Can$1.3 billion (14%), packaged pizzas at Can$1.2 million (12.7%), and soup at Can$861.8 million (9.4%) in 2023.

In Canada, there is a growing interest in new product developments in culturally-inspired foods, which is helping to particularly boost the sales in the meals and soups category - especially for ready meals (CAGR: 5.7%) and food kits (19.6%) between 2018 and 2023. Prepared salads was the best performed sub-category in 2023 (+7.8%) over the previous year, followed closely by food kits (+6.9%). Reasoning behind this trend, is due to consumers being increasingly pressed for time for home cooking especially with organizations adopting hybrid or on-site work models. As a result, meal kits help relieve the hassle of extensive meal preparation and these already prepared meals have become an economical and convenient solution for working Canadians.Footnote 3

The soups and meals category in Canada, however, is forecast to experience moderate growth at a total CAGR of 6.7% over the next five years (2023-2028). Food kits are expected to continue to grow at a higher rate (18.6%) over the forecast period, while traditional soups will be less popular. The demand for convenience and intriguing flavours is expected to play a pivotal role in supporting the industry's growth. Albeit, as money becomes tighter, consumers are expected to cut down from high spending in the grocery food and beverage industry, and instead will look towards budgeting their discretionary funds on expenditures such as foodservice, outdoor activities, and travel.Footnote 3

New health-consious product developments is a key factor, to continue to shape the meals and soups category. New product innovations must emphasize on functional benefits with added nutritional value that are rich in macronutrients or have a higher protein content. Additionally, the introduction of plant-based products are likely to gain prominence and carve out a lasting presence in the category.Footnote 3

Canada - Retail sales of meals and soups by category, historic Can$ millions - current prices
Category 2018 2019 2020 2021 2022 2023
Total - meals and soups 6,488.1 6,825.9 7,871.0 8,330.2 8,773.6 9,147.9
Ready meals 3,332.0 3,424.1 3,889.6 4,033.5 4,239.2 4,392.0
Soup 682.1 687.8 805.9 811.4 844.6 861.8
Pizza 923.2 917.4 1,073.5 1,104.3 1,145.2 1,162.4
Food kits 523.7 696.6 1,016.1 1,192.9 1,198.2 1,280.4
Prepared salads 1,027.1 1,100.1 1,085.8 1,187.9 1,346.3 1,451.3
Source: Euromonitor International, 2023
Canada - Retail sales growth (%) of meals and soups by category, historic
Category Annual growth % 2023/2022 CAGR* % 2018-2023 Total growth % 2018-2023
Total - meals and soups 4.3 7.1 41.0
Ready meals 3.6 5.7 31.8
Soup 2.0 4.8 26.3
Pizza 1.5 4.7 25.9
Food kits 6.9 19.6 144.5
Prepared salads 7.8 7.2 41.3

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Canada - Retail sales of meals and soups by category, forecast Can$ millions - current prices
Category 2023 2024 2025 2026 2027 2028
Total - meals and soups 9,147.9 9,631.4 10,257.8 11,008.1 11,859.0 12,674.9
Ready meals 4,392.0 4,576.2 4,777.2 4,994.4 5,223.8 5,465.7
Soup 861.8 880.5 899.9 921.5 945.6 969.8
Pizza 1,162.4 1,189.4 1,221.6 1,257.6 1,297.2 1,338.6
Food kits 1,280.4 1,481.0 1,769.6 2,143.3 2,599.1 3,005.6
Prepared salads 1,451.3 1,504.2 1,589.6 1,691.3 1,793.3 1,895.2
Source: Euromonitor International, 2023
Canada - Retail sales growth (%) of meals and soups by category, forecast
Category Annual growth % 2024/2023 CAGR* % 2023-2028 Total growth % 2023-2028
Total - meals and soups 5.3 6.7 38.6
Ready meals 4.2 4.5 24.4
Soup 2.2 2.4 12.5
Pizza 2.3 2.9 15.2
Food kits 15.7 18.6 134.7
Prepared salads 3.6 5.5 30.6

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Competitive landscape - meals and soups

In 2023, leading retail companies (and brands) in the meals and soups category in Canada included Nestlé SA (Stouffer's, Delissio, Marketplace Cuisine) at Can$1.2 billion (13.5%), HelloFresh SE (Chef's Plate, HelloFresh) at Can$577.8 million (6.3%), and the Campbell Soup Company (Campbell's, Habitant) at Can$521.5 million (5.7%). Private label meals and soups products held highest sales at a total market value of Can$1.5 million (16.1%) in 2023.

As people have started to return to work, the increasingly hectic lifestyles of consumers are anticipated to drive heightened demand for meal kits, which have led to sales growth in companies like Hello Fresh, Good Food, and several other new start-ups, such as Halalmeals and Inspired Go in Canada.

Nestlé's decision to exit the Canadian market in 2023, with leading brands (Delissio, Stouffer's) in frozen pizza and ready meals sub-categories will have significant implications for the food industry. Other brands will need to strategize and compete with new innovations, to fill the gap left behind by these product departures.Footnote 3

Canada's - Top 10 companies (brands) ofmeals and soups, 2023 retail value sales (US$ million) and market share - current prices
Company Top brand(s) Retail sales (US$ million) Market share % in 2023
Nestlé SA Stouffer's, Delissio, Marketplace Cuisine 1,233.1 13.5
HelloFresh SE Chef's Plate, HelloFresh 577.8 6.3
Campbell Soup Company Campbell's, Habitant 521.5 5.7
Charoen Pokphand Group Michelina's 506.5 5.5
Oetker-Gruppe Giuseppe, Restorante, Casa di Mama 497.5 5.4
Kraft Heinz Company Kraft, Crave, Heinz 471.1 5.1
ConAgra Brands Inc. Swanson, Healthy Choice, VH, Chef Boyardee 435.3 4.8
Goodfood Market Corp. Goodfood 291.7 3.2
Taylor Fresh Foods Inc. Earthbound Farm, River Ranch 191.9 2.1
Itochu Corp. Dole 183.3 2.0
Private label Private label 1,469.8 16.1
Others Others 1,817.8 19.9
Total - meals and soups 9,147.9 100.0
Source: Euromonitor International, 2023

Retail distribution channels - cooking ingredients and meals

In 2023, store-based retailing distribution of cooking ingredients and meals totalled a market share of 90.9% mainly consisting of grocery retailers such as supermarkets (53.7%), hypermarkets (17.4%), small local grocers (12.1%), and discounters (5.4%). Non-store e-commerce retailing for cooking ingredients and meal products held a 9.1% market share, which has increased by a high CAGR of 40.2% from sales of Can$262.2 million in 2018 to Can$1.4 billion in 2023.

Retail distribution channels for cooking ingredients and meals in Canada, by outlet type retail value sales (Can$ millions), current prices
Outlet type 2018 2023 CAGR* % 2018-2023
Actual Share % Actual Share %
Total - retail channels 11,358.0 100.0 15,551.8 100.0 6.5
Store-based retail - offline 11,095.8 97.7 14,132.7 90.9 5.0
Grocery retailers 11,072.4 97.5 14,099.3 90.7 5.0
Convenience retail stores (including forecourts) 40.0 0.4 48.5 0.3 3.9
Supermarkets 6,723.9 59.2 8,358.3 53.7 4.4
Hypermarkets 2,031.7 17.9 2,704.8 17.4 5.9
Discounters 574.5 5.1 837.8 5.4 7.8
Warehouse clubs 197.8 1.7 260.8 1.7 5.7
Food/drink tobacco specialists 1.5 0.0 1.6 0.0 1.3
Small local grocers 1,503.1 13.2 1,887.6 12.1 4.7
Non-grocery specialists 23.4 0.2 33.3 0.2 7.3
Health and beauty specialists 22.5 0.2 32.6 0.2 7.7
Other non-grocery retailers 0.8 0.0 0.8 0.0 0.0
Non-store retail - e-commerce 262.2 2.3 1,419.2 9.1 40.2

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Snacks – savoury

In 2023, savoury snack products in Canada was the largest segment in the overall snack category at a total retail sales value of Can$6.6 billion, growing historically by a CAGR of 6.8% between 2018 and 2023. Salty snacks had the highest sales in the savoury snack category at a value of Can$3.6 billion (54.1%), followed by nuts, seeds and trail mixes at Can$1.1 billion (16.2%), savoury biscuits at Can$913.2 million (13.8%), meat snacks at Can$541.3 million (8.2%), popcorn at Can$286.5 million (4.3%), pretzels at Can$89.8 million (1.4%), and seafood snacks at Can$12.3 million (1.(%) in 2023.

Post-pandemic, Canada after a long period of being isolated from others has fully reopened services that has resulted in an increase in social gatherings, as well as the return to offices and schools. This has led to a resurgence in on-the-go snacking and has encouraged manufacturers to move towards smaller portion size packaging more suitable for everyday consumption. Nevertheless, with food inflation in the country reaching an all-time high in early 2023, prices were increased in some snack sub-categories such as in confectionery and sweet biscuits, which resulted in lower volume sales. This forced manufacturers to take aggressive actions to lower price points in general that helped to maintain steady growth in an already high consumption level category - particularly amongst the targeted younger student generation, who are key consumers of snacks.Footnote 4

Snacks are expected to continue growth in the forecast period by a CAGR of 6.4% (2023-2028). While government actions aim to reduce inflation in Canada, manufacturers are heavily investing in new product development that focus on the health conscious consumer with functional benefits. Almost every snack category has seen a wide range of innovative products, where manufacturers are revitalizing certain categories by focusing on key ingredients such as added minerals, vitamins, protein and fibre, while striving to avoid high-carb and high-sugar products.Footnote 4

Canada - Retail sales of savoury snacks by category, historic Can$ millions - current prices
Category 2018 2019 2020 2021 2022 2023
Total - savoury snacks 4,759.8 4,946.5 5,362.1 5,671.4 6,116.3 6,620.1
Nuts, seeds and trail mixes 680.3 709.1 779.8 863.8 961.5 1,072.8
Popcorn 231.9 228.1 233.6 245.7 264.7 286.5
Pretzels 62.2 68.2 73.9 77.2 84.3 89.8
Meat snacks 287.7 326.0 376.6 420.3 476.2 541.3
Salty snacks 2,608.1 2,700.7 2,926.5 3,070.9 3,309.0 3,581.6
Savoury biscuits 794.3 815.8 866.3 880.7 896.2 913.2
Seafood snacks 5.4 6.6 8.8 9.6 10.8 12.3
Other savoury snacks (including seaweed, spicy gluten, insect snacks, variety packs etc.) 90.2 92.0 96.7 103.2 113.5 122.6
Source: Euromonitor International, 2023
Canada - Retail sales growth (%) of savoury snacks by category, historic
Category Annual growth % 2023/2022 CAGR* % 2018-2023 Total growth % 2018-2023
Total - savoury snacks 8.2 6.8 39.1
Nuts, seeds and trail mixes 11.6 9.5 57.7
Popcorn 8.2 4.3 23.5
Pretzels 6.5 7.6 44.4
Meat snacks 13.7 13.5 88.1
Salty snacks 8.2 6.5 37.3
Savoury biscuits 1.9 2.8 15.0
Seafood snacks 13.9 17.9 127.8
Other savoury snacks (including seaweed, spicy gluten, insect snacks, variety packs etc.) 8.0 6.3 35.9

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Canada - Retail sales of savoury snacks by category, forecast Can$ millions - current prices
Category 2023 2024 2025 2026 2027 2028
Total - savoury snacks 6,620.1 7,034.0 7,471.4 7,939.1 8,455.8 9,014.9
Nuts, seeds and trail mixes 1,072.8 1,169.7 1,275.0 1,390.1 1,519.5 1,662.5
Popcorn 286.5 303.2 319.4 335.8 352.6 369.6
Pretzels 89.8 93.6 97.2 100.6 104.1 107.2
Meat snacks 541.3 591.1 640.8 692.6 747.8 806.7
Salty snacks 3,581.6 3,814.5 4,063.0 4,328.7 4,623.4 4,942.2
Savoury biscuits 913.2 919.2 925.5 933.3 943.2 954.4
Seafood snacks 12.3 13.5 14.7 16.1 17.7 19.6
Other savoury snacks (including seaweed, spicy gluten, insect snacks, variety packs etc.) 122.6 129.4 135.7 141.7 147.5 152.9
Source: Euromonitor International, 2023
Canada - Retail sales growth (%) ofsavoury snacks by category, forecast
Category Annual growth % 2024/2023 CAGR* % 2023-2028 Total growth % 2023-2028
Total - savoury snacks 6.3 6.4 36.2
Nuts, seeds and trail mixes 9.0 9.2 55.0
Popcorn 5.8 5.2 29.0
Pretzels 4.2 3.6 19.4
Meat snacks 9.2 8.3 49.0
Salty snacks 6.5 6.7 38.0
Savoury biscuits 0.7 0.9 4.5
Seafood snacks 9.8 9.8 59.3
Other savoury snacks (including seaweed, spicy gluten, insect snacks, variety packs etc.) 5.5 4.5 24.7

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Competitive landscape - savoury snacks

In 2023, leading retail companies (and brands) in the savoury snack category in Canada included PepsiCo Inc. (Lay's, Doritos, Ruffles) at Can$2.5 billion (37.6%), Mondelez International Inc. (Ritz, Premium, Christie) at Can$466.8 million (7.1%), and Old Dutch Foods Inc. (Old Dutch, Restaurante Style, Humpty Dumpty) at Can$360.3 million (5.4%). Private label savoury snack brands held a high total market value of Can$968.4 million (14.6%) in 2023.

Manufacturers are targeting the younger, higher consumption audience, often through social media platforms such as Instagram that offers engaging content and interactions for snack brands like Pringles, Ruffles, KitKat, Lays, and Twizzlers. Kit Kat, for example, launched an Instagram-specific product (exclusively available through Instagram influencers) called Iftar Bar at the start of Ramadan, targeting and engaging the Muslim community - which specializes in 30 bars, one for each day of fasting. Additionally, small business owners persistently striving to enter the snacks market are actively supported by Canadian consumers. As a result, successful entrants gaining consumer confidence are small companies like the Humble Snacks Company and Simply Protein. As part of its Global snacking business unit called Kellanova, Mondelez International is restructuring its operations by successfully acquiring the Cliff Bar and Kellogg Company's snack brands.Footnote 4

Canada's - Top 10 companies (brands) ofsavoury snacks, 2023 retail value sales (US$ million) and market share - current prices
Company Top brand(s) Retail sales (US$ million) Market share % in 2023
PepsiCo Inc. Lay's, Doritos, Ruffles, Miss Vickie's, Tostitos, Smartfood, Fritos, Rold Gold, Stacy's Pita Chips, Twistos, Cheetos, Crispy Minis, Cracker Jack, Chester's, Spitz, Sunchips 2,486.6 37.6
Mondelez International Inc. Ritz, Premium, Christie, Wheat Thins, Triscuit 466.8 7.1
Old Dutch Foods Inc. Old Dutch, Restaurante Style, Humpty Dumpty, Arriba 360.3 5.4
Hormel Foods Corp Planters 242.6 3.7
Link Snacks Inc Jack Link's 196.2 3.0
ConAgra Brands Inc. Orville Redenbacher's, Slim Jim, Bigs, Duke's 167.0 2.5
Dare Foods Ltd. Breton, Melba, Vinta, Grissol 152.7 2.3
Campbell Soup Company Pepperidge Farm, Kettle Chips 100.0 1.5
The Wonderful Co LLC Wonderful Pistachios 96.8 1.5
Blue Diamond Growers Blue Diamond 80.8 1.2
Private label Private label 968.4 14.6
Others Others 903.1 13.6
Total - savoury snacks 6,620.1 100.0
Source: Euromonitor International, 2023

Retail distribution channels - snacks category

In 2023, store-based retailing distribution of snack products totalled a market share of 94.5%. While grocery retailers such as supermarkets (28.9%) and hypermarkets (11.4%) have maintained their growth in the snack category, discounters (13.1%), small local grocers (12.9%), and convenience and forecourt retailers (11.4%) have at the same time steadily gained a higher market share, sometimes at the expense of traditional retailers.

Non-store e-commerce retailing for snack products held a 5.5% market share, which has increased by a high CAGR of 51% from sales of Can$124.6 million in 2018 to Can$978.0 billion in 2023. Meanwhile, vending and direct selling of snacks have remained low or have drastically declined over the period, with CAGRs of 1.6% and −12.9% respectively (2018-2023).

Foodservice has experienced a healthy recovery and has seen a strong performance as the country fully reopened. A factor also, driving this high demand is a growing population through an influx of immigrants and tourists, which has led to an increase in the number of new foodservice outlets.Footnote 4

Retail distribution channels for the snacks category in Canada, by outlet type retail value sales (Can$ millions), current prices
Outlet type 2018 2023 CAGR* % 2018-2023
Actual Share % Actual Share %
Total - retail channels 13,390.3 100.0 17,650.9 100.0 5.7
Store-based retail - offline 13,265.7 99.1 16,672.9 94.5 4.7
Grocery retailers 11,603.3 86.7 14,509.1 82.2 4.6
Convenience retail stores (including forecourts) 1,571.8 11.7 2,005.4 11.4 5.0
Supermarkets 4,162.5 31.1 5,093.2 28.9 4.1
Hypermarkets 1,577.0 11.8 2,011.7 11.4 5.0
Discounters 1,822.4 13.6 2,311.4 13.1 4.9
Warehouse clubs 255.3 1.9 331.6 1.9 5.4
Food/drink tobacco specialists 405.3 3.0 471.1 2.7 3.1
Small local grocers 1,809.0 13.5 2,284.8 12.9 4.8
Non-grocery specialists 1,591.4 11.9 2,087.1 11.8 5.6
General merchandise stores 89.0 0.7 115.4 0.7 5.3
Health and beauty specialists 1,096.4 8.2 1,321.4 7.5 3.8
Other non-grocery retailers 406.1 3.0 650.4 3.7 9.9
Non-store retail 195.5 1.5 1,054.7 6.0 40.1
Vending 70.7 0.5 76.6 0.4 1.6
Direct selling 0.2 0.0 0.1 0.0 −12.9
E-Commerce 124.6 0.9 978.0 5.5 51.0

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Product launch and trend analysis

Mintel indicated that there were 37,278 packaged food products launched (including new variety/range extension, packaging, formulation or relaunched) in Canada's supermarkets between the period of January 2018 and December 7th, 2023. During this period, these food products consisted mainly of categories such as new sauces and seasonings (16.8%), snacks (14%), processed fish, meat and egg products (12.1%), bakery (11.4%), dairy (8.1%), side dishes (6.5%), fruit and vegetables (5.5%), chocolate confectionery (5.4%), meals and meal centers (4.3%), and sweet spreads (3.4%).

Number of top packaged food product launches by selected category in Canada, N=37,278 (January 2018 to December 7, 2023)
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Product 2018 2019 2020 2021 2022 2023 (January to December 7) Total
Packaged food 6,729 6,436 6,393 6,377 6,063 5,280 37,278
Sauces and seasonings 929 901 1,182 1,216 1,133 897 6,258
Snacks 941 914 826 834 905 789 5,209
Bakery 773 771 701 697 720 573 4,235
Dairy 508 545 629 579 417 354 3,032
Side dishes 562 515 304 346 370 316 2,413
Meals and meal centers 300 228 298 279 233 252 1,590

Source: Mintel, 2023

Top parent companies launching the most new package food products in Canada over the last year [Q4-2022 to Q4-2023] were Metro (282), George Weston (279), Pattison Food Group (279), Walmart (194), Sobey's (134), and Avril Supermarché Santé (106). New packaged food brands launched recently for the first time within the last six months in the Canadian market (2023) include Chef Pasquale (Rosata sauce), Flavorgod (gingerbread cookie flavoured seasoning), We Bio! (no sugar added organic apple mango purée), and Grenade (milk chocolate protein spread).

In Canada, the fastest growing flavours in these packaged food products were tahini (+600%), pesto (+600%), and Mexican, sundried tomato, peri/piri and Turkish delight growing by +400% each [Q4-2021 to Q4-2023]. New or popular ingredients included sour cream and onion flavour, sea trout, cilantro, golden linseed flour, calcium potassium phosphate citrate, Kennebec potato, vegan fish stock, packaging gases, and Coral lentil.

Leading claims used on these packaged food products within the last three months were Kosher (37.5%), low/no/reduced allergen (33.2%), gluten free (28.5%), no additives/preservatives (23.1%), environmentally friendly packaging (17.7%), vegan/no animal ingredients (15.8%), environmentally friendly product (15.1%), and free from added/artificial flavourings (14.1%). Other health and functional claims on packaging included organic (18%), plant-based (9.2%), premium (7.3%), dairy free (5.9%), wholegrain (4.3%), high/added fibre (3.8%), all natural (3.4%), no added sugar (3.4%), and high/added protein (3.2%). Amongst these products, top growing claims included functional - eye health (+600%), functional - brain and nervous system (+300%), female (+200%), functional - digestive (133.3%), and carbon neutral (+116.7%); while declining claims at −100% included male, breath-freshening, seasonal, diabetic, no/no/reduced glycemic [Q3-2022 compared to Q3-2023].

In the Canadian market, the highest growing categories included sweet spreads (+62.5%), fruit and vegetables (+57.1%), sauces and seasonings (+23.2%), soup (+39.5%), and side dishes (+10.1%); while top declining categories included chocolate confectionery (−71.8%), dairy (−34.2%), meals and meal centers (−28.1%), bakery (−16%), snacks (−11.6%), and processed fish, meat and egg products (−9.6%) [Q4-2022 vs Q4-2023].

New product launches of packaged food products in Canada January 2018 to December 7, 2023
Product attributes Yearly launch - item count
2018 2019 2020 2021 2022 2023 Total
Yearly product launches 6,729 6,436 6,393 6,377 6,063 5,280 37,278
Top launch types
New variety/range extension 2,958 2,668 2,259 2,300 1,929 1,619 13,733
New packaging 2,057 1,723 2,363 2,246 2,595 2,079 13,063
New product 1,351 1,759 1,372 1,453 1,152 1,229 8,316
Relaunch 333 270 387 358 380 338 2,066
New formulation 30 16 12 20 7 15 100
Top sub-categories
Fish products 370 325 269 380 261 236 1,841
Seasonings 337 379 255 250 342 229 1,792
Vegetables 273 239 248 309 231 225 1,525
Meat products 378 195 236 190 194 142 1,335
Baking ingredients and mixes 207 163 164 240 304 197 1,275
Top five companies
Loblaws 490 255 401 368 340 152 2,006
Sobeys 178 79 386 413 205 88 1,349
Walmart 176 233 237 128 248 157 1,179
Metro Brands 303 109 41 175 235 235 1,098
Save-on-Foods 0 26 119 213 168 153 679
Top five brands
Compliments 92 50 293 290 126 65 916
PC President's Choice 202 94 173 155 173 80 877
Great Value 128 171 170 82 163 128 842
Western Family 109 44 118 220 145 112 748
Selection 142 38 7 58 114 76 435
Import status (if reported)
Imported 2,242 2,400 2,290 2,363 2,055 1,814 13,164
Not imported 1,273 1,292 1,279 1,376 1,580 1,471 8,271
Top five price groups
US$0.18 - 11.17 6,304 5,949 5,726 5,704 5,481 4,613 33,777
US$11.18 - 22.17 380 418 595 606 526 620 3,145
US$22.18 - 33.17 35 59 62 54 54 35 299
US$33.18 - 44.17 9 3 10 7 2 7 38
US$44.18 - 57.00 0 1 0 6 0 2 9
Top five flavours (including blend)
Unflavoured/plain 2,445 2,416 2,323 2,440 2,139 1,804 13,567
Chocolate 146 111 111 121 99 105 693
Smoke 111 73 65 82 75 58 464
Vanilla/vanilla Bourbon/vanilla Madagascar 63 61 59 55 50 47 335
Strawberry 61 56 55 53 48 55 328
Top package types
Flexible (stand-up pouch/sachet) 3,615 3,546 2,825 2,744 2,991 2,548 18,269
Jar 514 573 866 859 732 616 4,160
Bottle 351 344 562 570 503 402 2,732
Tub 484 461 364 409 388 404 2,510
Skinpack 406 389 410 385 290 254 2,134
Source: Mintel; Global New Product Database, 2023

Product examples

Organic Brown Rice Paper with Turmeric

Source: Mintel, 2023
Company Cultivar Foods
Brand King Soba
Sub-category Bakery, baking ingredients and mixes
Market Canada, imported from Vietnam
Related claims Organic, vegetarian, gluten free, wholegrain, low / no / reduced allergen, ethical – environmentally friendly package / recycling, ease of use, vegan / no animal ingredients
Store name / type / location Marchés TAU, natural / health food store,  Montreal-Langelier, H1S 1V7
Launch type New product
Date published December 2023
Price in Canadian dollars 9.99
 

This product retails in a 200 gram pack and contains 22 portions. Vietnamese-style rice wraps. Organic, gluten-free, and vegan. Ideal for fresh Vietnamese-style spring or summer rolls. Just soak, fill and roll. Recyclable pack. Suitable for vegans and vegetarians. Logos and certifications: Canada Organic

Organic Coconut Sugar

Source: Mintel, 2023
Company Big Tree Farms
Brand Big Tree Farms
Sub-category Sweeteners and sugar, sucrose
Market Canada
Related claims Organic, ethical – environmentally friendly product / human / sustainable, vegan / no animal ingredients, GMO free  
Store name / type / location Costco, club store, Burnaby, V5C 0E5
Launch type New product
Date published December 2023
Price in Canadian dollars 12.99
 

This product retails in a 1.8 kilogram pack. Nature's perfect unrefined sweetener for baking and beverages. Certified fair trade. Organic granulated coconut flower blossom nectar sugar is super sustainable. Logos and certifications: USDA Organic, Non GMO Project Verified, Control Union Fair Choice, Vegan, Facebook, Twitter, Instagram

Fire Roasted Brussel Sprouts & Bacon

Source: Mintel, 2023
Company PuraVida Foods
Brand PuraVida
Sub-category Side dishes, stuffing, polenta and other sides
Market Canada, imported from the United States
Related claims Microwaveable, gluten free, low / no / reduced allergen
Store name / type / location Costco, club store, Burnaby, V5C 0E5
Launch type New product
Date published December 2023
Price in Canadian dollars 17.99
 

This product retails in a 1.1 kilogram pack containing four pouches. Microwaveable individual steam pouches, ready in five mins. A mix of Brussels sprouts and naturally smoked bacon tossed in extra virgin olive oil, Himalayan pink salt and cracked black peppercorns, fire roasted using proprietary high temperature for a short time - al dente cooking method, followed by rapid freezing using advanced cryogenics. Gluten free. Logos and certifications: Facebook, Twitter, Instagram, LinkedIn, YouTube, U.S. Inspected and Passed

Organic Whole Brown Rice Flour

Source: Mintel, 2023
Company La Milanaise
Brand Milanaise
Sub-category Bakery, baking ingredients and mixes
Market Manufactured in Canada, not imported
Related claims Organic, wholegrain, ethical – environmentally friendly package / biodegradable / toxins free / sustainable
Store name / type / location IGA, supermarket, Jean Talon Est, Montreal, H1S 1K6
Launch type New product
Date published December 2023
Price in Canadian dollars 10.79
 

This product retails in a 1 kilogram pack. Ideal for cookies and muffins. Made in Canada from imported ingredients. Milanaise is a family business. To meet organic definition, all cereal grains used for milling have been produced in full compliance to standards of organic agriculture, using composts, green manures and sound crop rotations to maintain and enhance soil fertility. For better quality, all the manufacturer's flours are freshly milled. 100% compostable bag with water based ink. Logos and certifications: Ecocert, Canada Organic, Kosher, Ecocert Canada

Marble Rye Sliced Bread

Source: Mintel, 2023
Company Walmart
Brand Your Fresh Market
Sub-category Bakery, bread and bread products
Market Canada
Related claims No additives / preservatives, Kosher, low / no / reduced transfat, free from added / artificial colourings or flavourings
Store name / type / location Walmart, mass merchandise / hypermarket, Edmonton, T6N 0A9
Launch type New product
Date published December 2023
Price in Canadian dollars 3.47
 

This product retails in a 500 gram pack. Marble rye sliced bread, made from a traditional European-style recipe - perfect on its own, as a sandwich or for dipping in your favourite spreads. The Ingredient Wise symbol appears on products made without these ingredients: synthetic colours, artificial flavours and sweeteners, hydrogenated vegetable oil, and monosodium glutamate. Logos and certifications: Ingredient Wise, Kosher, How2Recycle

Chestnut Spread

Source: Mintel, 2023
Company Meilleures Marques
Brand Chef Lelarge
Sub-category Sweet spreads, nut spreads
Market Canada, imported from France
Store name / type / location Metro (Canada), supermarket, Montreal, Langelier, H1N 1C6
Launch type New product
Date published December 2023
Price in Canadian dollars 14.99
 

This product is now available and retails in a 500 gram pack. Fine products. This chestnut spread has a delectable texture and can be enjoyed on its own, on a piece of angel cake or mixed into favourite recipes, like chestnut brownies.

For more information

The Canadian Trade Commissioner Service:

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

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More on Canada's agriculture and agri-food sectors:

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Information on the agriculture industry by sector. Data on international markets. Initiatives to support awareness of the industry in Canada. How the department engages with the industry.

Resources

  • Euromonitor International database, 2023
  • Euromonitor International | June 2023. Country Report: Snacks in Canada
  • Euromonitor International | November 2023. Country Report: Baked Goods in Canada
  • Euromonitor International | November 2023. Country Report: Meals and Soups in Canada
  • Euromonitor International | September 2023. Country Report: Dairy Products and Alternatives in Canada
  • Global Trade Tracker, 2023
  • Mintel Global New Products Database, 2023

Sector Trend Analysis – Packaged food trends in Canada
Global Analysis Report

Prepared by: Erin-Ann Chauvin, Senior Market Analyst

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