The Canadian food manufacturing industry supplies approximately 70% of all processed food and beverages for Canadians, and also is the largest buyer of its own agricultural production. The internal consumption represents less than 50% of the total food production in Canada, while the other half is destined to other countries. These numbers make Canada the 5th largest food exporter in the world, where its major export partners are United States (84%), China (5%) and the United Kingdom (1%).

Among its most significant productions is possible to find meat products accounting more than 25% of manufacturing sales (CAN $30 billion), followed by dairy products with 12.5% of the sales (CAN $15 billion). Other important industries are bakeries, beverage, Grain and oilseed milling, or fruit and vegetable preserving. The provinces with the largest production are Ontario and Quebec, with 62% of it.

2021 was a record year in Canada food and beverage, and the industry is expected to grow by more than 10% by the end of 2025. Despite this positive outlook, there are many challenges to be addressed such as rising costs, 57% of food and beverage manufacturers have difficulties dealing with inflation; labour shortages, 78% of manufactures struggle to hire; low levels of digitalization, just 46% of Canadian food processors are investing in advances or emerging technologies. This is without the consideration of the overreliance in the animal products and the plastic waste generation coming from packages. These challenges open great opportunities for innovation and ways to improve the industry.

As in many times, the adoption of technology is essential to remain competitive. One of the most innovative tendencies is the use of techniques such as machine learning or artificial intelligence for protein extraction from plant-based sources and use them as animal substitutes. The Canadian industry is open for competition to improve its market, one of the cases of success is the Chilean “NotCo”, a company that uses AI and Machine Learning to analyse plant-based ingredients to combine them and develop new similar in flavour and texture substitutes for animal-based food. Products such as Not Milk and Not Burger (100% vegetal) after a year have their own space among supermarkets and different brands such as Papa John’s, Starbucks or Kraft Heinz products.

Other trends that Canada’s Food manufacturing industry needs to adopt are New processing and production technologies, including processes that reduce food waste, 3-D food printing, new nutrient extraction methods, genetic engineering, and bacteriophages that ensure food safety and reduce contamination. Enhanced food safety technologies including processes enabling rapid detection, supply chain traceability, contaminant elimination, improved quality assurance, and new types of personal protective equipment. AI-enabled technologies to improve supply chain resilience. And packaging technologies that enhance traceability, shelf-life, food safety, and anti-tampering while reducing environmental waste.

These adoptions could help to improve distribution times, better food waste management and above everything help to deal with the coming labour shortage. If you do want to miss this trend and other opportunities to develop business in Canada, do not hesitate to contact TRANSFER.LC your Global Business Consultant.