The Canadian market for organic foods is now worth Can $5 billion (USD 3.7 billion). According to Statistics Canada, retail sales have increased 57% over the past five years.
Two in three Canadians (67%) now spend at least some of their weekly grocery budget on organic items, up from about 50% in 2014. The rise in organic food sales extends across multiple categories from fruits and vegetables to nuts and even desserts such as pies.
When asked why they choose organic food items, the majority of Canadians (78%) cite “health benefits” as the main reason, according to a poll by StatsCan. Other reasons for the move towards organic foods include “fewer chemicals” and “better for the environment.”
The market share of organic foods in mainstream retailers has expanded from 1.7% in 2014 to 2.6% in 2019. Large supermarkets, such as Loblaws and Provigo, are investing in their organic food ranges. The number of dedicated organic food shops is also increasing; they include Fiesta Farms, The Healthy Butcher, Nature’s Emporium and Sweet Potato.
Ecovia Intelligence Comment
Consumer demand for organic products is strengthening in Canada, however supply continues to fall short. With COVID-19 affecting global trade, there remain questions on how organic food companies and retailers will be able to ensure smooth supply. The way forward is greater domestic supply, however how can Canadian and American growers be encouraged to convert to organic farming methods?
Related Report: Global Market for Organic Food & Drink
Source: Bay Street / Ecovia Intelligence (15/03)
