3 ways to respond to the new Canadian food and beverage processing landscape

5 min read

So much has changed in our food and beverage industry since 2020.Food and beverage processors need to learn about the culture of consumers in their specific market.

The entire value chain endured a global pandemic and, as an industry, continues to recover. As a result, we need to be responsive to a very different Canadian consumer.

High levels of inflation mean those now shopping for food and beverages are more value conscious. As well, the amount of people purchasing food and beverage products in Canada has changed significantly. According to Statistics Canada, our population increased 7.5% since Q1 of 2020.

Population growth and increased sales

For food and beverage processors, the reality is that total sales grow as the population grows. Although it’s not always a linear relationship, food and beverage sales should increase with the population.

Population growth is different by province, as illustrated in the following table with data from Statistics Canada:

	Q1 2020	Q1 2024	% change

NL	528,231	540,552	2.3%
PE	157,474	176,162	11.9%
NS	984,130	1,069,364	8.7%
NB	781,054	846,190	8.3%
QC	8,537,376	8,984,918	5.2%
ON	14,718,155	15,911,285	8.1%
MB	1,377,283	1,474,439	7.1%
SK	1,169,426	1,225,493	4.8%
AB	4,392,958	4,800,768	9.3%
BC	5,157,053	5,609,870	8.8%
YK	41,505	45,387	9.4%
NT	44,533	44,741	0.5%
NU	39,010	40,721	4.4%

Canada	37,928,188	40,769,890	7.5%

Some provinces grow faster than others. The change can be a result of growth from within the province, interprovincial migration or immigration.

Changing demographics

The challenge for food and beverage processors is that the product mix will change. Most of the growth in the Canadian population has been driven by immigration. According to the Government of Canada, 471,810 new permanent residents moved to Canada in 2023. Here are the top 10 countries of origin:

	Residents	% total
India	139,790	29.6%
China	31,780	6.7%
Philippines	26,960	5.7%
Afghanistan	20,180	4.3%
Nigeria	17,460	3.7%
Pakistan	11,860	2.5%
Iran	10,680	2.3%
USA	10,640	2.3%
France	10,075	2.1%
Syria	9,345	2.0%
Total top 10 countries	288,760	61.2%

Looking at changing demographics and countries of origin of the newcomers is a good place for food and beverage processors to start, but there are other considerations to keep in mind when planning for your food and beverage processing business.

The people coming into Canada do not always choose to live evenly spaced out across the country. Often, they choose to live where family, friends or others with similar cultures have already settled. Food and beverage processors need to learn about the culture and opportunities with the consumers in their specific market.

Here are three ways to respond and seek opportunities in the new landscape of the Canadian food and beverage processing business:

1. Visit specialty stores

Specialty and other small stores often respond faster to changing consumers. They can react quickly, and they seek out opportunities to differentiate from the larger stores. Visit these stores and learn from the owner, consumers and the products on the shelves. Some items might be imported, which can be costly and complicated. Are there any opportunities for you to fill a gap? It’s possible, with the right ingredients and expertise, that some of the products can be produced here.

2. Listen and learn

Consumers will usually tell you what they are looking for. Gatherings are usually a time when food is part of the occasion. Learn about the different products consumers like to eat and take any chance you can to educate them about some of the existing products you have. But remember: when people choose to live in Canada, they also like to try different foods they are now exposed to.

3. Check out new restaurants

Newcomers may start restaurants to earn their livelihood. These restaurants usually offer a menu of familiar items from home. Explore the menu to understand the items and the flavours. It’s possible your business could produce some of the items in ready-to-eat formats or incorporate the flavours into existing items.

The changes in the Canadian population create opportunities for the food and beverage industry. Many of the changes need some development, but it’s an excellent chance to break into some new markets.

Consumer Trends & Innovation

Peter Chapman

Retail Marketer, Author, Speaker & Consultant

Peter Chapman understands how large retailers make decisions. His company, SKUFood, provides services to producers and manufacturers who want to increase their sales to large, centrally structured retailers or specialty retailers. Benefit from this valuable insight as Peter helps you understand your customers and how to sell more products to them. Peter is a regular contributor to FCC Knowledge and speaks at FCC events.