Emerging food products, processes and technologies 2020-21

December 2021

Executive Summary

Agriculture and Agri-Food Canada’s (AAFC’s) Food Industry Division (FID) periodically conducts a review of emerging trends and technologies in the sector. With a focus on emerging products, processes and technologies slated to hit the market in the next 3-5 years, particular consideration is given to those which could pose a challenge to Canada’s current regulatory framework. This work is done in order for agri-food stakeholders to better manage their entry into the marketplace and for regulators to proactively anticipate their needs. The project methodology is based on the development of a targeted survey to solicit information from key stakeholders. Results are then analyzed and summarized in a final report. The surveying phase was carried out in 2 waves, with Wave 1 garnering feedback from AAFC Food Research and Development Centre scientists, while Wave 2 sought engagement from academics, FoodTech Canada Centre researchers, regional accelerators, and technical schools.

Responses from stakeholders highlighted a range of upcoming innovations in the food space. A considerable amount of feedback was provided for new products dealing with enhanced nutrition and health claims, and those leveraging new processing technologies. Along with alternative proteins, these areas could pose challenges to Canada’s regulatory framework if concerns are not addressed in the short term. Another area of particular interest is food packaging, which has generated increased activity in recent years and has potential applications for both food safety and environmental sustainability. Products which make wellness claims (for example, improved immunity), new contaminant detection and elimination technologies, and innovative supply chain processes are also likely to continue to grow. Although clear regulatory pathways may already exist for some of these areas, others may require a modification or clarification of existing regulations. In order to maintain a balance between market accessibility and public safety, it is clear that the most important tool moving forward will be a consistent and sustained dialogue between industry and regulators as the food space continues to change rapidly in Canada.

Background and Context

As part of the AAFC Market and Industry Services Branch (MISB), FID works to identify emerging trends in the agri-food sector in order to anticipate regulatory challenges, and to communicate these challenges effectively to regulatory authorities. As such, FID periodically conducts a review of emerging trends and technologies in the sector (previously completed in 2012 and 2015). The findings will benefit both agri-food stakeholders and regulatory bodies by highlighting needs for regulatory agility.

• Agri-food stakeholders will be better able to develop plans and priorities for innovative foods by gaining an appreciation of the regulatory considerations and research required to allow their entry into the marketplace.
• Regulatory bodies will be able to proactively anticipate and assess the need to develop or modify regulatory requirements to accommodate innovation in the agri-food sector for emerging food products, processes and technologies in advance of their readiness for the marketplace.

Project Methodology

The project methodology is based on the development of a targeted survey to solicit information from key stakeholders, analysis of the results, and compilation of the findings into a summary report.

FID conducted an environmental scan to identify recurring themes in today’s agri-food sector. This was done through a review of pertinent food industry literature, including studies and projects on food safety and nutrition from recognized sources such as Food in Canada, Canadian Food Business, Canadian Institute of Food Science & Technology and International Life Sciences Institute, as well as a review of the topics covered in previous iterations of this study. FID identified emerging products, processes and technologies and conducted a preliminary assessment of the capability of Canada’s regulatory framework to address these issues. Issues which were deemed to pose a potential challenge to the current regulatory framework were added to the initial list of emerging trends to be further explored in this study.

In consultation with AAFC’s Science and Technology Branch (STB) and Strategic Policy Branch (SPB), as well as Health Canada’s Food Directorate, FID finalized the initial list of emerging food products, processes and technologies and grouped them into four main themes. FID also identified sub-categories within those main themes to gain a further understanding, as follows:

In order to validate these themes and sub-categories with expert stakeholders, a questionnaire was developed with advice from AAFC’s Public Opinion and Research Team and senior staff in STB and SPB. The questionnaire was designed to get a better understanding of the level of research activity in each theme and sub-category, and the potential regulatory challenges anticipated to arise in relation to commercialization in the next 3-5 years.

The questionnaire also encouraged the stakeholders to identify other areas of consideration in the food space which may have been overlooked by FID. In order to get a broad understanding of emerging food products, processes and technologies, some open-ended questions were included to allow scientists to offer a personalized response. Given the current situation and potentially lasting impacts of the COVID-19 pandemic, the scientists were also asked to consider this factor when discussing overarching themes.

Wave 1 – AAFC Food Research and Development Centre scientists

The questionnaire, which consisted of 17 questions, was distributed to 55 scientists working in various areas of food science within AAFC Food Research and Development Centres across the country. This sample was determined by FID in collaboration with senior staff within STB, who were familiar with the work of AAFC scientists. Questionnaires were offered in both English (Annex) and French, and were designed to be anonymous. The questionnaire was distributed in November 2020 and the scientists were given 12 business days to respond, in either language of their choice. FID received a total of 43 responses, for a response rate of 78%.

The AAFC scientists were also asked to comment on their awareness of new products, processes or technologies which would result directly from applications focused on the circular economy, a concept which is at the forefront of government policymaking.

Wave 2 – Academics, FoodTech Canada Centres and other food scientists

For Wave 2, FID integrated the identified themes and sub-categories into a questionnaire for academics, FoodTech Canada Centre researchers, regional accelerators, and staff at technical schools who work on food-related issues. Consideration was given to the fact that Wave 2 participants tend to work more closely with applied research and the commercialization process, and therefore may have firsthand experience with regulatory challenges. The questionnaire contained many of the same questions as those used in Wave 1; however, it was modified to pursue additional detail related to sub-themes which invoked the most response in Wave 1. As before, questions regarding the regulatory challenges anticipated to arise in relation to them in the next 3-5 years were also included. No questions regarding the circular economy were included, as this topic was of particular interest to participants in Wave 1. Once again, the questionnaire encouraged the participants to identify other areas of consideration in the food space which may not have been included in the list of themes and sub-categories presented by FID.

In order to provide respondents with an efficient method of completing the survey, some selection-style questions were employed (for example, ranking of themes, yes/no responses). Open-ended questions then allowed for the participants to offer a written response to accompany their answers. This method was used to capture the most data, while balancing the response time required. Although the questionnaire asked for brief responses in most instances, no definitive parameters or limits were set on the amount of words or details allowed. As in Wave 1, participants were also asked to consider the impacts of COVID-19 when discussing overarching themes.

For Wave 2, FID determined a sample size of 74 participants (30 from Academia, 11 FoodTech Canada researchers, 19 working at Accelerators, 14 staff from Technical Schools) working in various areas of food science across the country. The questionnaire was distributed in March 2021 and the participants were given 13 business days to respond, in the language of their choice. Due to a low response rate within this timeframe, FID sent out reminders to participants, and extended the deadline by an additional 5 days. In total, FID received a total of 15 responses, for a response rate of 20%. While low compared to Wave 1, the response rate for Wave 2 is in line with the average survey response rate^{Footnote 1}, and the nature of responses was both meaningful and robust. The response rate may also have been impacted by survey fatigue due to an increase in government surveys during the COVID-19 pandemic as well as disruptive work environments during the pandemic.

Findings

Overarching Themes

With respect to emerging trends prior to the COVID-19 pandemic, the AAFC scientists (Wave 1 participants) placed a large emphasis on Enhanced Nutrition and Health Claims. FoodTech Canada Centre researchers, regional accelerators, and staff at technical schools (Wave 2 participants) also mentioned Enhanced Nutrition and Health Claims as an emerging area, but leaned more heavily towards New Processing and Production Technologies.

In regard to Enhanced Nutrition and Health Claims, reasons provided for the anticipated growth of the area included the ever-increasing public interest in diet and value-added nutrition, and the need to prevent food-related disease in Canada’s aging population. Some respondents in Wave 2 touched on the issue of food security, and the lack of guidance most food insecure consumers have in making healthy eating choices. Respondents indicated that Canadians are more aware than ever about the contents of their food, and the resulting impacts on their health, and therefore believe that products offering demonstrable health benefits are likely to continue to grow in popularity among consumers. However, some respondents in Wave 1 raised concerns that this area of research may already be oversaturated.

New Processing and Production Technologies were identified for their role in generating new products, processes and technologies, particularly in the area of protein extraction from plant-based sources. Most respondents believe that consumers are becoming more health-conscious, environmentally aware, and cognizant of animal welfare. As such, it is believed that investment will continue to grow in technologies and products that are both nutritious and tasty, while maintaining a natural or ethically sourced claim or other similar marketing efforts. Wave 2 respondents indicated that technologies which increase shelf life and drive down costs of production are also likely to see investment in R&D, as manufacturers continue to push for market share in this competitive space.  

A few Wave 1 respondents also ventured that Enhanced Food Safety Technologies which limit pathogens and prevent outbreaks resulting in recalls will be important going forward. The need for reduction of food loss and waste and other green technologies was a recurring theme throughout, and although respondents felt that innovation in Food Packaging will be limited to a few sub-themes, at least prior to COVID-19, it was identified as a potential medium to reduce pollution through biodegradable packaging.

In considering the impacts of COVID-19, most respondents in both waves again identified New Processing and Production Technologies and Enhanced Nutrition and Health Claims as the being the most likely to generate new products, processes and technologies in the next 3-5 years. Respondents cited increased awareness of the possibility of contamination of products by viruses and other microorganisms as a driver for the growth of safe production technologies. Due in part to the pandemic, consumers are also more likely to consider the benefits of products to their immunity, such as those with anti-inflammatory properties or holistic wellbeing claims. There has also been an increased focus on extending shelf life, sanitation, and supply chain optimization through automation. A few respondents in Wave 2 anticipate that COVID-19 will have a measurable effect on health, and that this experience will likely result in a more informed and health conscious consumer who seeks out foods with health benefits.

Food Packaging and Enhanced Food Safety Technologies were also mentioned in a COVID-19 context in both Wave 1 and Wave 2. Respondents pointed out that the virus can remain on packaging for days, which could have implications for all products. The development of packaging which is sustainable while preventing the increase of pathogens is likely to see more focus due to COVID-19, according to respondents in Wave 1. This notion was further reinforced by Wave 2 participants, who cited the potential of advanced food packaging technologies to improve food safety, a concept which they identified will likely have renewed focus in consumer circles for many reasons, including COVID-19. It should be noted however, that the questionnaire was completed early in the pandemic when surface contact was a major concern. With more information coming to light on the spread of COVID-19, more focus has been placed on pathogen dispersion through air.

Wave 2 respondents also noted that the major trend of alternative protein innovation is not likely to be slowed by the pandemic, and will continue pushing forward. In addition, this trend could be further accelerated due to the rising costs of traditional meat products, which have experienced supply chain disruptions and price fluctuation over the course of the COVID-19 pandemic.

Theme 1: Enhanced Nutrition and Health Claims

Within this theme, most respondents indicated the areas of Protein Innovation and Meat Alternatives, as well as Value Added Ingredients with Health Claims, as most likely to generate activity over the next 3-5 years. These results were aligned for both waves.

In the area of Protein Innovation and Meat Alternatives, respondents highlighted that there is a lot of interest at both the consumer and product development level for novel protein sources and the rise of texturized plant proteins. Several Wave 1 respondents mentioned that, as cell-cultured meat costs begin to decrease, consumer interest in these products will likely rise. Wave 2 respondents indicated that although the traditional meat and dairy industries will continue to resist the encroachment of protein alternatives in what they have traditionally considered their sector, this area will continue to see activity in the coming years. Some of the main reasons for this include consumer-driven growth, and the possibility to find more sources of protein which can be further refined into food products. Many respondents in Wave 1 also mentioned that meat substitutes represent an environmentally sound alternative, when compared to the emissions produced from traditional meat sources. Although they concede that alternative protein is perceived by the public to be healthier than traditional meat, some respondents argued that alternative protein is actually made up of processed ingredients which do not provide a health benefit. Furthermore, these respondents indicated that consumers may prefer the texture and taste of traditional meat, and, in the case of insect protein, may have negative perceptions regarding the alternative product. Nonetheless, almost all respondents believe the area is not yet saturated, and anticipate that more novel protein products will be submitted to Health Canada for approval.

To further delve into this concept, participants were asked if they were aware of any new alternative protein sources which may enter the market in the next 3-5 years. Some responses focused on further exploring existing trends, such as insect-based proteins and pulse proteins. However, more specific responses included mycoproteins (sourced from a naturally occurring fungus), milk proteins from microbial fermentation, and recombinant animal proteins. A few respondents also pointed to the emerging cellular agriculture industry, but believe that there could be regulatory hurdles for these products, including labelling and testing for allergens.

Most respondents highlighted that a key regulatory consideration for alternative protein products will be the food safety assessments of new ingredients being used, such as single-cell proteins. Many respondents also drew attention to the fact that Canada has not yet addressed the issue of Common Names and Definitions for meat substitutes and names reserved for traditional animal products (for example, cheese, sausage). As such, it is anticipated that a potential regulatory hurdle could emerge for producers of meat alternatives in the future.

Several respondents in both waves also indicated that Value Added Ingredients with Health Claims are also likely to see a rise, as future research continues to work to prove causal relationships between ingredients and improved health. Functional foods and fortified foods that are able to provide health benefits in addition to satisfying basic nutritional needs are of increasing importance to consumers, according to respondents. Therefore, many respondents believe most of the activity in this area in the next 3-5 years will be focused on perfecting fortified foods with health benefits, as well as health, mind and holistic wellness products. Regulatory issues identified in this area included typical novel food assessments for new ingredients and the approval of new health claims. Wave 1 respondents pointed out that Canada’s existing regulatory framework for foods looking to make a health claim is stringent and could slow down entry to market of certain new products. However, they believe this is in the interest of public health.

Wave 2 respondents also cited the regulatory approval process as an inhibitor to growth and innovation particularly for Value Added Ingredients with Health Claims. Some respondents felt that the current list of acceptable health claims was too limited and that more claims would be needed to reflect the possibilities associated with the emerging area of value-added ingredients. Many respondents also mentioned the amount of time and effort required for regulatory approval in Canada as an irritant, and highlighted the need for more flexibility in this realm. Wave 2 respondents presented the use of findings in other countries (for example products, ingredients and claims approved in other jurisdictions) as a potential way to streamline this process, and increase the pace of product development for foods with health claims.

Personalized Nutrition was also identified by respondents as an area which will become important for immune system function, and to allow for the development of disease resistance. Respondents pointed out that a gap exists in the market for the development of diets specific to certain demographics, such as the elderly or for athletes. Although respondents believe consumers are likely to continue to increase spending on health, mind and holistic wellness food products, the scientific ability for genetic characterization (allowing for truly personalized nutrition) is expected to take longer than 3-5 years. At that time, some respondents believe technology and Artificial Intelligence will play a key role in personalizing one’s intake. Respondents indicated that there will likely be a regulatory challenge regarding consumer privacy related to personalized nutrition later on as technology becomes more involved.

According to some respondents, Fortification of Foods and the practice of adding bioactive compounds to food products during processing could see some incline in the next 3 to 5 years. Respondents believe consumers are interested in fortified products which improve gut health through the addition of bioactive ingredients, increase vitamin intake, and boost general immunity. Although they do not predict any major regulatory challenges, respondents caution that the framework will likely need to be expanded to allow for additional claims as more research comes to light. 

Respondents also highlighted several other areas of Enhanced Nutrition and Health Claims which will likely emerge in the next 3-5 years. This includes the development of ingredients which have antiviral properties, in contrast to the antibacterial and antifungal agents which exist today. Respondents believe that these could be binding agents (antibodies, exopolysaccharides), probiotics, or enzymes. A few respondents also believe work will be done to understand how probiotics can rebalance a microbiome (genetic material) to prevent disease and maintain health. However, respondents stated that regulatory challenges may occur when seeking approval for clinical trials, as this can be difficult to justify.

Theme 2: New Processing and Production Technologies

Respondents from both groups indicated emphatically that technologies Reducing Food Loss and Waste would generate the most activity in the next 3-5 years. A few Wave 2 participants also highlighted New Extraction Methods, but this is likely because they qualified cell-culture as an extraction method, rather than as an alternative protein end-product, which would have been captured in Theme 1. In regard to cell-culture, respondents indicated that labelling and novel food assessment are likely sources of regulatory challenge moving forward.

According to most respondents, reduction of food loss and waste will allow for better utilization of agricultural commodities through the sector economy. Many respondents believe that the development of environmentally friendly and efficient technologies to extract and utilize food by-products that would generally be considered as waste will become increasingly important in the next 3-5 years. According to respondents in both Wave 1 and 2, consumers are increasingly demanding that food producers adopt more sustainable practices that save water and energy. This is tied to another concept which participants highlighted as a growing trend in all areas of food production – the consumer-driven need for processors and retailers to respond to social and ethical food practices. They indicated that modern consumers are in-tune to the origin of their food, and are partial to production practices which they deem to be ethical; as a result, food processors and retailers will likely continue to be pushed for transparency in the marketplace.

Furthermore, given this is a high priority area across governments at all levels, respondents from some AAFC research centers believe funding is likely to be provided to produce products, processes and technologies that reduce the ecological footprint of food processing and distribution, and reduce food loss and waste. Respondents in Wave 1 gave examples of new conservation technologies such as ohmic heating for wastewater treatment and pulsed electric field treatment of food waste as potential emerging technologies. Robotics and automation were also mentioned as likely to play a large part in the development of the circular economy, as waste management becomes more systematic. No major regulatory concerns were brought forth in regard to reduction of food loss and waste.

One area where respondents believe there is room for innovation within food waste reduction is innovative preservation technologies, which is in contrast to the traditional notion of food waste recycling and re-use. Phage Technology was highlighted as a potential application for food preservation, as it allows bacteriophages to be irreversibly attached onto food packaging, which stabilizes the phages and allows them to be applied to food products without introducing moisture. Per respondents, regulatory challenges are anticipated due to the bioactive nature of these products, which will need to undergo assessment for food safety. Furthermore, participants indicated that regulators may not be aware of the depth of phage technology applications and may be slow to adapt regulatory testing for them. Consumer acceptance of phage technology was also highlighted as a likely challenge, due to the live nature of the bioactive compound. However, some Wave 1 participants believe that because phages are natural and sustainably sourced, consumer acceptance of this technology may be high among some consumer groups.

Phage Technology was also thought to have significant room for growth in the coming years by respondents in Wave 1, especially in the area of anti-viral and anti-bacterial product development. In this application, microbiome therapy with bacteriophages aims to modulate the human microbiome to combat many of the chronic or degenerative diseases believed to be associated with dysbiosis (reduction in microbial diversity) in the gut microbiota. Scientists indicated that it can be difficult to find suitable carrier and delivery mechanisms for phage products, but that many companies are currently working towards phage products which can be applied to foods. The concern regarding carrier mechanisms was also reiterated by a few respondents in Wave 2. However, significant regulatory challenges may arise from the bioactive nature of these products, which can have unique effects on each person. Respondents concede that there is no consensus on how to define a single healthy human gut microbiota composition as research has shown this is individualized and highly complex. They therefore believe that there is a risk that phages may target specific populations of bacteria that are essential for a healthy gut for some people, while irrelevant for others.

3D Printed Food, New Extraction Methods, and Genetic Engineering were all deemed unlikely to produce much activity in terms of new products, processes or technologies in the food sector over the next 3-5 years. Respondents in Wave 1 did, however, mention that 3D printed food could be used in food service, although mostly as a novelty. Although they mentioned that supercritical fluid extraction infrastructure is being heavily scaled up for cannabis and hemp facilities, respondents did not identify any new forms of extraction which could emerge other than non-thermal extraction, which is currently in its early stages. According to respondents, genetic engineering is an already saturated area of innovation; however, they indicated that public opinion on genetic engineering is still adverse, especially in markets such as Europe.

Other areas of potential activity highlighted by respondents in Wave 1 included the use of cyclodextrins for improved bioavailability of nutraceuticals and functional ingredients, and the use of residues in processing technologies. Considerable mention was also made of technologies that will ensure hygiene and safety of food byproducts/waste prior to utilization, ensure sanitation, and protect workers.

Theme 3: Food Packaging

Closely tied to the reduction of waste which was emphasized in the previous category, Environmentally Sound Packaging was, according to respondents in both groups, the area of Food Packaging most likely to generate activity over the next 3-5 years. However, many Wave 2 respondents also pointed to Smart Packaging Technology and New Packaging Materials as key drivers of growth in the field of Food Packaging over the coming years.

Some respondents highlighted that environmentally sound packaging is already front-of-mind in the industry as provinces move to ban plastic bags and make more biodegradable packaging available. They indicate that environmentally sound packaging is also more attractive for consumers with respect to benefits for the environment and preservation of nature. Because environmentally sound packaging ties in heavily with the circular economy, a few respondents indicated that it is likely that there will be spillover effects of the increased need to reduce waste on the development of new packaging.

In order to get a better understanding of alternative materials, participants in Wave 2 were asked to specify whether they had any knowledge of new or innovative packaging materials which may currently be under development. Most of the respondents highlighted materials which will be bio-degradable, further reinforcing the importance of Environmentally Sound Packaging moving forward. Some examples of potential new applications included packaging made from agricultural waste like straw, soy pods, pulse hulls, corn stover (leaves, stalks etc.), kelp and hemp. However, some respondents indicated that despite the trend towards environmentally friendly packaging, an issue that will need to be addressed is that demand will likely continue to outpace the ability to recycle these materials.

Smart Packaging Technology and New Packaging Materials were also mentioned to be likely to generate new products over the coming years by both groups. Respondents who were proponents of smart packaging indicated that it has the potential to provide information for traceability, shelf life, and general food safety. Many respondents also mentioned that the use of sensors and color-changing materials for indicating freshness are currently being developed in addition to packaging that can indicate temperature changes. Tying in with the previous theme, the introduction of phage and nanotechnology embedded in materials to produce smart antimicrobial packaging will also likely emerge in the next 3-5 years, according to Wave 1 AAFC Scientists.

Respondents believe that regulatory challenges are likely to exist for new packaging technologies and materials. Most notably, respondents pointed to the existing significant requirements for substantiating evidence demonstrating that a material is safe and reliable under a range of conditions when seeking regulatory approval. For packaging that employs novel films embedded with bacteriophage, such as nanocomposites/coacervates with functional roles, regulatory assessment is likely to be in-depth, and will require a significant amount of time. They also cautioned that bacteriophage/antimicrobial resistance components will have to be carefully studied with respect to their interaction with foodstuff in direct contact during storage and transportation. As such, some respondents indicated that consumer concern regarding migration of substances from the packaging material into the food will be a major concern throughout the rollout of these products.

Anti-tampering Packaging is tied to food safety, which respondents in Wave 1 indicated could become more important due to the COVID-19 pandemic, and due to the increased trend of online shopping where consumer goods are handled by sources unknown to the consumer. No regulatory concerns were brought up in regard to this sub-category. A few Wave 1 respondents also indicated that millennials and post-millennials will likely drive the demand for all innovative forms of packaging as they are willing to pay a premium to reduce environmental impact and increase personal safety. Small mention was also made of domestic equipment that will combine in the refrigerator and increase conservation, such as lockers that allow the injection of gas for modified atmospheres (for example, CO₂ essential oils).

Theme 4: Enhanced Food Safety Technologies

Most respondents in Wave 1 indicated the areas of Rapid Detection Methodologies and Supply Chain Traceability and Data Management as the two areas of food safety likely to see the most growth over the next 3-5 years. Wave 2 participants gave some regard to Rapid Detection Methodologies, but focused more heavily on Supply Chain Traceability and Data Management.

According to participants from both groups, the areas of Rapid Detection Methodologies and Supply Chain Traceability and Data Management are closely linked. Respondents indicated that, given the amount of food production and transport that occurs, there is a high probability for contamination along the supply chain. Furthermore, due to the global and complex nature of today’s food supply, the consequences of being unable to determine a point of contamination are amplified. Although poised for growth, these fields are anticipated to provoke some technical challenges. One example given was that each rapid detection or contaminant elimination method would likely target one type of particle. These technologies would therefore require a long and demanding development, and each would require regulatory approval. Many respondents from both waves believe rapid detection will allow for increased food safety in a global economy, which ties in closely with Supply Chain Traceability.

As Canadian consumers ask processors for more and more transparency, respondents indicated that data management will be essential to the industry over the coming years to meet this demand, and that this will help to increase consumer confidence. Therefore, respondents highlighted that maximizing the utility of available data will be an important next step, as companies already collect vast amounts of data but are unsure how to draw strategies and measurable results from it. Some respondents ventured that the proper implementation of data parsing processes could accelerate the introduction of Artificial Intelligence in this field, which would rely on this refined data for machine learning. No major regulatory hurdles are anticipated for the area of Supply Chain Traceability and Data Management, although respondents mentioned that challenges pertaining to the sharing of information within the confines of international trade agreements for imported and exported foods may cause some debate.

Contaminant Particle Elimination was also identified by several respondents in Wave 1 as an area where there will likely be an emergence of products, processes, and technologies over the next 3-5 years. Respondents believe that, as food contamination and foodborne illness have become major consumer issues due to increased awareness, innovative decontamination and disinfection methods will become important to ensure food safety. UV rays and electrolyzed water (EW) are examples they provided of technologies which could be used as effective decontamination and disinfection methods on a food production line. They indicated that firms will likely focus more effort on developing optimal processes for the treatment of foods, and perfect the conditions under which these processes should be carried out (for example, pH, temperature). Due to COVID-19, respondents believe there will be an increased focus on surface contaminant particle elimination. In terms of regulatory challenges, the safety and long-term impact of the specialized lighting will need to be investigated before use in uncontrolled environments.

As part of Wave 2, respondents were also asked whether they were aware of any innovative contaminant particle elimination technologies. Examples of emerging technologies included hyperspectral imaging and terahertz imaging, both of which are anticipated to enter the market within the next 3-5 years. Respondents also emphasized the importance of process transparency, in order to meet consumer desire to have an understanding of the forms of treatment their food undergoes.

Advancements in Quality Assurance and Personal Protective Equipment are also likely to see more growth due the COVID-19 pandemic, according to a few Wave 1 AAFC scientists. They believe that it is likely that the food industry is now becoming increasingly aware of risks associated with food production and will work to be better equipped (both from an educational and infrastructure standpoint) to deal with such issues. Participants did not bring forth any major regulatory issues in relation to these two areas.

Wave 1 respondents also mentioned other areas of food safety technologies which could see an increase in activity over the next 3-5 years. This includes new antimicrobial strategies based on improvement and adaptation of existing technologies (for example, plasma, photocatalytic disinfection, high-intensity narrow-spectrum light, light-activated photosensitizers, self-disinfecting surfaces, biological approaches) for food processing and preservation applications. Some also believe that point-of-use anti-microbial products may also emerge, such as a spray agent. A few respondents believe that, as a general trend, consumers will be increasingly suspicious of the types of inputs (for example, fertilizer, pesticides) used to produce edible plants.

The Circular Economy

A circular economy is an economic system that tackles challenges such climate change and waste through the reuse or recycling of outputs to create a closed-loop system. The Wave 1 AAFC scientists were asked to comment on their awareness of new products, processes or technologies which would result directly from food applications focused on the circular economy, a priority for STB. Responses varied widely, but one key area mentioned was isolating usable material from spent grains and oilseeds. According to many respondents, protein can be isolated from seed waste, and can be broken down into enzymes to create peptides, which can be used in nutraceuticals to treat chronic disease. Waste from cereal grains and horticultural waste was also mentioned as potentially feasible and beneficial as a dietary ingredient, although research in this area still remains to be done.

Technology is also anticipated by respondents to play a key role in the advancement of the circular economy. A few respondents indicated that Artificial Intelligence has the potential to be able to detect market demands of certain products to increase/decrease production, resulting in more utilization of inputs and less waste. New fermentation processes to enhance the filtration of permeates of milk and whey were also mentioned as being likely to emerge. The milk permeate could then be used in other applications in the dairy sector, for example as an aromatic slurry to be reused in cheese making.

A general agreement emerged among the AAFC scientists that, in order for the circular economy to progress, there is a need to change the culture and mentalities of organizations in Canada’s agriculture and agri-food sector. Respondents highlighted that industrial sectors must be integrated, and a clear pathway for the use of by-products of a certain industry to be used as raw materials of another must be established. Alternatively, companies must find ways to reintegrate part of their wastes into their sold products. Respondents indicated that research funding directed to these areas will be key if Canada wishes to see results in the near future.

Analysis and Conclusions

In compiling the feedback from respondents in both waves, FID aimed to understand how products, processes and technologies anticipated to enter the market in the next 3-5 years might fit into the current regulatory framework. This included identifying areas where the existing regulatory framework is adequate; may require a few modifications; or, whether there are gaps or alternatives to regulation that may be an option. In all cases, further dialogue between regulators and industry needs to take place. FID also worked to understand general consumer trends more thoroughly, and pinpoint areas of alignment between these trends and food innovations as this alignment could accelerate timelines and create a sense of urgency for regulators. In short, the overall objective of this analysis is to allow agri-food stakeholders to improve planning and product development by gaining an appreciation of the regulatory considerations. Simultaneously, this analysis will also serve to help regulators understand the innovations taking place in the agri-food sector and to proactively anticipate and assess the need to develop or modify regulatory requirements efficiently.

In the area of Enhanced Nutrition and Health Claims, which was one of the categories which solicited considerable feedback, respondents generally agreed that there is already an existing regulatory pathway for many of the emerging products they discussed. Consistent with this theme is an uptick in consumer demand for foods with health benefits, as well as health, mind and holistic wellness products. Furthermore, due in part to the COVID-19 pandemic, consumers are particularly interested in personalized nutrition regimes and choosing products which they perceive will increase their immunity. However, the submission requirements for a health claim on food and the timelines for approval can be quite onerous and are a deterrent for seeking product approval in Canada. For food manufacturers, proving the validity of prospective health claims will be a challenge, given the need for data that demonstrates quality of evidence, strength of association and consistency of effect or causation. This will be particularly difficult for products making claims regarding improved immunity, gut health, vitality or other factors which are difficult to quantify given their holistic nature. Therefore industry must be aware of the strong data requirements when considering new health claims or adjust their product positioning accordingly. To enhance transparency and quality of submissions, regulators are encouraged to expand the availability of technical guidance for health claims with an emphasis on which metrics are acceptable measurements, including recognized biomarkers, for those seeking validated health claims for their products.

Another aspect of this category which may present some regulatory challenges is the development of products using new, value added ingredients associated with wellness and/or health claims.  Although Canada already has a robust novel food assessment framework in place to adequately test for food safety of foods without a history of safe use, growth in this area could trigger an increased demand for novelty determination which may tax the current capacity of regulators. In addition, some manufacturers may want to fortify products with vitamins and minerals as well as other bioactives.  The recently publicized Supplemented Foods regulations provides a suitable framework for products with active ingredients, however the number of categories allowing discretionary fortification are limited. Consideration needs to be given on when and how this framework will be updated as demand for revision or expansion of the list of recognized food categories will likely happen in the near future.

In the area of Protein Innovation and Meat Alternatives (alternative proteins), respondents were not as concerned about regulatory challenges regarding product testing and approval, but did draw attention to potential labelling and consumer acceptance issues. Canada’s current approach is to require mandatory labelling when there is a documented health or safety concern (such as allergens) that could be mitigated through labelling, or if there has been a significant nutritional change in the food (such as high oleic acid oils). However, when it comes to products made with alternative proteins, there is some confusion on how best to position them in the marketplace. For example, terminology such as ‘simulated’ protein and requirements to fortify vitamin and mineral levels to mimic nutrients in animal products may no longer align with how consumers consume or view alternative protein products.  Regulators will also need to determine whether common names traditionally associated with animal foods (such as “burger”, “fillet”, “steak”) are appropriate for plant-based products, and whether the nutritional equivalency requirements will be maintained.

With the emergence of cellular agriculture, where two identical meat products could theoretically be produced in two very different ways – one on a farm and one in a laboratory, there is increasing attention being given to labelling, including method of production statements to address “consumer right to know”. This approach is different from the existing approval process and voluntary label standard used for genetically engineered foods. In addition, some label statements used to market cellular agriculture (for example, Clean Meat) creates a biased comparison to traditional animal products and implies traditional meats have a higher food safety risk. Therefore, establishing a regulatory approach and label terminology for products of cellular agriculture would help to ensure these products enter the marketplace in a consistent, predictable and transparent manner while ensuring that traditional commodity food products are not negatively characterized. As some new protein products have already entered the market in other jurisdictions, there is some urgency for Canada to determine the regulatory requirements for products of cellular agriculture before applications for import licenses overwhelm the current framework. Requirements for nutritional equivalency will also need to be determined as it is possible to manipulate the cellular growth medium through fortification to allow micro-nutrients to be equivalent to or different from traditional meat. Discussion among regulators, consumer groups, and industry will be required in order to understand the full impact of any potential changes.

The category of New Processing and Production Technologies was another area where many of the emerging processes and technologies will likely fit into the existing regulatory pathway, such as the novel food assessment process. Many respondents indicated that the approval time for novel processing technologies tends to be slow, and does not match the speed of business. This results in negative impacts for companies looking to move quickly and gain a market advantage. As investment in new processing and production technologies increases, this will likely increase the number of novel food applications which in turn will tax current capacity levels. A review to establish process efficiencies is recommended given the existing service standards allow for more than a year-long approval process. Also ensuring access to up-to-date technical guidance documents that support the interpretation of regulatory frameworks as well as publicizing decisions where emerging products, processes and technologies have been deemed non-novel would be beneficial. Facilitating industry’s understanding of the regulatory framework and approval process ensures that time and resources are used effectively, improves the quality of regulatory submissions and allows industry to factor in the regulatory requirements and timelines into their business planning.

Due to environmental considerations, there has been a rise in processing technologies which aim to reuse byproducts which were traditionally considered waste as inputs for other products. This is known as upcycling, as discussed in the findings above. Moving forward, regulators will not only have to consider the end-product of a processing technology, but also the byproducts created and how they may re-enter the food supply chain in another medium. Transparent regulatory pathways will have to be established for these byproducts and regulators will have to determine whether these new inputs may require pre-market assessment or additional food safety scrutiny. This area could also trigger the need for review of the definition of food processing aids vs food additives. Food processors may be of the opinion that the byproduct has already gone through the regulatory process when it was first created. Therefore, a discussion and a clear decision on the pre-market approvals requirements for upcycled materials will become necessary in the short term.

One area which is seeing a lot of activity currently is Food Packaging. This trend is projected to continue to grow as food packaging applications are potential solutions for many of today’s food-related issues, including sustainable packaging and waste reduction, contamination prevention and outbreak mitigation, and food preservation. As mentioned in the survey findings, food packaging technologies which add value to food safety will be particularly pertinent going forward, due in part to the increased attention to packaging and surface transmission brought on by COVID-19, but also because the modern consumer is more aware of food safety concerns in general. Respondent feedback on packaging was mostly concerned with regulatory challenges regarding the potential use of phage technology, which would require extensive testing to be approved. However, it is generally agreed that this testing is available in Canada, so regulators would not have to change their current testing process significantly. More thought-provoking, however, is that food packaging in Canada is a largely unregulated area, apart from the food safety testing for residue left on food from certain materials. Herein lies an opportunity to have a dialogue with scientists, food manufacturers and regulators about upcoming innovations in food packaging and build consensus to address this regulatory gap. Given the amount of innovation in this area, the need for this dialogue is critical in the short term. In engaging with stakeholders, it will be important to consider regulatory approaches, but equally important to consider the merits of methods such as joint reviews or industry-led initiatives.

Linked in part to the New Processing and Production Technologies theme and the Enhanced Nutrition and Health Claims theme, respondents indicated that claims of sustainability and ethical production methods will also continue to grow. Although these products do not necessarily make claims regarding personal health, consumers tend to perceive them as a favorable option because of their inferred contribution to societal wellness (for example, zero-carbon, recycled). Beyond environmental sustainability, information and claims regarding ethical practices employed in the sourcing of foods is becoming more pronounced (for example, fair trade). As these types of claims have already gained significant traction in the market and will continue to do so, regulators and industry alike must ensure that there is some validity to the claims, so that genuine products are not de-valued and consumers are not mislead. In the short term, establishing a framework which governs, on some level, the types of permissible claims, the supply chain traceability and transparency requirements to make a claim, and the allowed language or symbols on a food package will become important. Beyond protecting consumers, a framework would also protect industry players who are genuinely creating sustainable and ethical products from competitors who make false claims. Because of the intrinsic value to industry, this initiative does not necessarily have to take the form of regulation, and could give way to industry-led efforts. As a first step, regulators and industry stakeholders should engage to determine how the landscape could be more predictable for all parties, including consumers.

In regard to Enhanced Food Safety Technologies in the global economy, many respondents highlighted the importance of new contaminant particle elimination and rapid detection methodologies to prevent outbreaks. From an environmental perspective, these technologies also have the potential to reduce the amount of food which is discarded by processors. Existing novel food regulations will likely cover innovative rapid detection and contaminant particle elimination technologies, although new technologies which are more effective may require regulators to review requirements, such as radiation limits and exposure time. Applying an outcome-based approach to thresholds and limits would facilitate innovation as new methodologies evolve. Regulators should continue to consider agile methods which balance consumer safety with the speed of business, such as the establishment of a common recognized review process and equivalency of products and claims approved in like-minded jurisdictions.

While detection technologies aim to prevent contamination, it is unlikely that supply chain errors will be eliminated completely, given the global nature of today’s supply chain. Traceability and data management are important tools for managing supply chain issues. As food processors continue to gather more data than ever before, there is an opportunity to build smarter and safer supply chains by properly leveraging this knowledge. Furthermore, as regulators adopt digital solutions to improve process efficiencies, standardizing the types and format of data shared by multiple food processors would help facilitate information management. However there may be hesitation to share information until there is greater transparency regarding data privacy, safeguarding of corporate data, and sharing data within the confines of international trade agreements between nations. Regulators will have to work alongside stakeholders to build consensus around the impacts of sharing corporate data, and how the information of Canadian companies can be protected in the process.

As new products, processes, and technologies emerge in all areas of the food space, the speed of innovation in the marketplace places increased pressure on regulators to develop faster, more efficient processes. In order to accelerate market access, regulators will need to remain committed to understanding the realities of today’s market, embrace outcome based regulations such as the Safe Food for Canadians Regulations and shift oversight capacity to areas of documented risk.  Shifting regulatory capacity using a risk-based approach was successfully implemented during the COVID-19 pandemic and could help to inform alternatives to regulations.

The themes identified in this paper are consistent with previous findings and align with current efforts to modernize the regulatory environment. In 2019 the Government of Canada made a commitment to identifying opportunities to make regulatory efficiency and economic growth a part of regulatory modernization. Moreover, there is a clear demand from industry, for predictable and transparent regulations which are outcome-based in nature rather than prescriptive, particularly surrounding food safety. As such, industry stakeholders continue to advocate for alignment in approval/testing regimes across like-minded countries, and for the use of foreign reviews and joint safety assessments for food products. This idea, which has been suggested by industry in numerous engagements with regulators, has yet to gain significant traction. As a first step, Canadian regulators have committed in the Regulatory Roadmap on Agri-Food and Aquaculture to explore where it is feasible to conduct joint pre-market safety assessments or share assessments, while keeping in mind the health and safety of Canadians first. Digitalization was also identified as a key theme for regulatory modernization. Applying a digital lens to many aspects of the food assessment framework, such as the use of digital applications and certificates, has also been recognized as an area of commitment for regulators.

Lastly, in order for agri-food stakeholders to better manage product entry into the marketplace and for regulators to proactively anticipate their needs, the most important tool moving forward will be a consistent and sustained dialogue between both parties. In analyzing the themes within this report, it is apparent that many new food products, processes, and technologies are slated to hit the market in the next 3-5 years, which will make for an exciting food space in Canada. That being said, it is also apparent that some of the innovations do not fit into the current regulatory framework and could therefore pose a challenge to both industry and regulators alike. AAFC plays a key role to ensure regular engagement between agri-food stakeholders and regulatory bodies continues to take place in order to allow both sides to understand the opportunities and limitations of the existing regulatory environment and its impact on investment and innovation across the food and beverage sector.

Annex – Questionnaire

1. Prior to COVID-19, which theme did you see as being the most likely to generate new products, processes or technologies in the next 3-5 years? Why?
2. Prior to COVID-19, which theme did you see as being the least likely to generate new products, processes or technologies in the next 3-5 years? Why?
3. Please indicate if there are any other major themes you believe will emerge (including as a result of COVID-19), and give a brief description.
4. Which area of Enhanced Nutrition will likely generate the most activity in the next 3-5 years? Why?
5. Please indicate if there are any other areas related to Enhanced Nutrition that you believe will emerge (including as a result of COVID-19), and give a brief description.
6. Do you anticipate a regulatory challenge related to any of the sub-categories above? Please specify.
7. Which area of New Processing and Production Technologies will likely generate the most activity in the next 3-5 years? Why?
8. Please indicate if there are any other areas related to New Processing and Production Technologies that you believe will emerge (including as a result of COVID-19), and give a brief description.
9. Do you anticipate a regulatory challenge related to any of the sub-categories above? Please specify.
10. Which area of Food Packaging will likely generate the most activity in the next 3-5 years? Why?
11. Please indicate if there are any other areas related to Food Packaging that you believe will emerge (including as a result of COVID-19), and give a brief description.
12. Do you anticipate a regulatory challenge related to any of the sub-categories above? Please specify.
13. Which area of Enhanced Food Safety Technologies will likely generate the most activity in the next 3-5 years? Why?
14. Please indicate if there are areas related to Enhanced Food Safety Technologies that you believe will emerge (including as a result of COVID-19), and give a brief description.
15. Do you anticipate a regulatory challenge related to any of the sub-categories above? Please specify.
16. As the circular economy in agriculture advances, are you aware of applications that would generate new products, processes or technologies that were not previously available, and give a brief description.
17. Please indicate any other emerging products, technologies, or processes you feel were not covered in the sections above.

Prepared By:
Randip Komal, Sheryl Conrad and Anne Kennedy
Innovation and Regulations

Food Industry Division
Market and Industry Services Branch
Agriculture and Agri-Food Canada