Sector overview

• Food and beverage (F&B) manufacturers transform inputs
  into value-added products for food retailers, restaurants
  and consumers. Despite recent economic headwinds, the
  long-term outlook is positive, due to strong population
  growth and rising global demand.
• Main industries
  Meat product manufacturing (25.5%) $42.7 billion
  Grain and oilseed milling (12.7%) $21.3 billion
  Dairy product manufacturing (10.9%) $18.2 billion
  Bakeries and tortilla manufacturing (10.6%) $17.8 billion
• These four industries accounted for nearly 60% of all F&B
  manufacturing sales in Canada in 2023

• The following seven trends are likely to have a strong impact on Canada’s F&B manufacturing
  sector over the next decade.
  1. Weaker consumer spending- We ill specifically focus on this point due to domestic consumer pattern
  2. Evolving consumer preferences
  3. Persistent labour shortages
  4. Declining productivity
  5. Altered water access due to climate change
  6. Regulatory compliance
  7. Export markets diversification

  The challenge

Inflation, restrictive monetary policy and a weaker economy have strained Canadian households’ budgets. Consumers are paying more for essentials such as food, housing and transport, all while managing higher debt loads. Statistics Canada’s 2023 data shows that spending on F&B products rose 7.5% year over year. One major driver of the increase was food-price inflation. Prices rose by 7.8% in 2023,7 a significant gain considering that food prices had already risen by 9.8% in 2022. The rapid rise in prices was due to several factors, including geopolitical conflicts (such as the Russia–Ukraine war) and climate events, which affected crop yields.

Planning to open restaurant/Hospitality Business in Canada? Feel free to call me to get an Industry insights & Financing.

Parth Patel
 Commercial & Residential Mortgage Agent Level-2/Team Lead @ DLC National LTD.
 Cell Phone: +1-226-246-0236
 Email: parthpatel@dominionlending.ca
 Web :https://mortgagebrokerparth.com/
 Address: 5675 Whittle Road, Mississauga, ON, L4Z 3P8
 Independently owned & operated. FSRA Licensed #12360

Source: BDC Business Bulletin 2024 market outlook for F & B Industry Canada.