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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • In 2019, Agropur Co-Operative Agro-Alimentaire led the organic segment in Canada with a value market share of 8.4%. Artisanal brands have performed well in Canada, commanding a value share of 5.6%. The second-highest individual brand share is of Nature’s Path Foods Inc, with a share of 4.5%. The single-digit share of the brand leaders suggests a competitive and currently still, fragmented market.
  • YoY value Growth continued at an increasing pace, reaching close to 5.4% in 2019, post approx. 5.0% in 2018 with gains of around 7.0% expected in 2020.

  • Organic products in Canada represent roughly 3.1% of global value demand and approximately 7.6% of value share in North America, recording a per capita expenditure of US$40.6 in 2019.
  • With an increasingly health-conscious demographic and a moderately growing economy, organic products are expected to see stable growth in Canada in the near term.
  • Additionally, increasing support from the government and retailers is expected to increase accessibility and affordability. This is one of the key drivers expected to propel organic products in Canada with a forecast CAGR of 6.1% for the period 2019-2024, reaching a value of approx. US$ 2.0 bn by 2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Canada continued to record robust value growth, increasing by over US$ 100mn in 2019 to reach a value of approx. US$1.5 bn.
  • Organic chocolate confectionery led growth in organic packaged food due to the increasing popularity of the healthy indulgence trend, recording current value growth of 21.0% for the period 2018-2019.
  • Fruit/herbal tea led the growth in organic beverages with current value growth of 12.0% in 2019. However, this growth was influenced partly due to a 4.0% increase in average unit prices in current value terms in 2019.
Market Trends
  • A primary factor for the demand for organic products in Canada is the increasing adoption of the organic lifestyle. Consumers of all demographics, such as baby boomers and millennials, have oriented themselves to replace their conventional foods with variants consisting of organic claims to improve their health.
  • Demand has also been facilitated by government support, with investments made into improving production methods and increasing consumers’ accessibility to organic food to boost consumption further.
  • Additionally, organic products' entry into declining or stagnating categories such as sugar confectionery, processed meat and baked goods is enticing consumers' desire for healthy indulgence. Examples of such products include organic processed meat offerings from Maple Leaf such as its hot dogs. Another example is seen with the launch of certified organic bagels from Bakestone Brothers and organic tortillas from PBF Pita Bread Factory Ltd.
Competitive Landscape
  • The rising popularity of organic products has led to manufacturers expanding their product range to include organic offerings or to increase existing organic varieties. An example of this can be seen by Kraft Heinz Co launching organic variants of its Classico tomato sauce or by the GoBio! brand offering organic variants of gravy cubes and powders, bringing some novelty and freshness to the category.
  • Strong growth has been noted for brands focusing explicitly on organic offerings, particularly for smaller, niche players with healthy, local and small-batch production offerings. This can be seen through the success of the organic salad player Organicgirl, which attracts consumers through attractive labels on packaging and the guarantee of 100% organic produce, which led to the brand entering Canada from its origins in the US.
  • There is also a significant effort from retailers to increase shelf space for organic products, particularly hypermarkets, to focus on making organic foods more accessible and affordable to consumers. Among them, Organic Garage, a Toronto based retailer, is seeing a significant uptick in consumer interest and spending. Internet retailing also increased its value share of organic products in 2019 with players like Spud.ca gaining share through their offering of local, organic and sustainable groceries as well as their private label line Be Fresh.
Prospects And Growth Opportunity
  • A value slowdown is predicted mainly due to the increasing scale of production and distribution, leading to a price decline in organic products, particularly those offered through private labels. This expected decline holds prospects for an increase in consumer base for organic products. For instance, organic versions of Tunisian olive oil from the Terra Delyssa brand are experiencing steady growth due to their relatively low prices, despite the primary consumer choice being Spanish or Italian olive oils.
  • There is a notable increase in expenditure on organic products from consumers of younger demographics, including millennials, whose purchasing power is increasing. In addition to being better for the environment due to the use of responsible farming practices, consumers understand organic products are clean as they are free from pesticides, antibiotics and genetically modified ingredients.
  • With rising consumer demand and increasing competition from retailers, organic packaged food and beverages are expected to witness growth in the near term, recording a value CAGR of 6.3% for the period 2020-2022, reaching a value of approx. US$1.8 bn in 2022.
General Health And Wellness Trends
  • Consumers in Canada are increasingly adapting organic consumption with either a partial or complete organic lifestyle, shifting from traditional variants of food ingredients to organic options where possible. This is mainly in the case of fruits and vegetables as well as juices, where consumers highly prefer the ingredients to be organic. This emphasis on fully organic products has led to increased consumer expenditure on organic packaged food as well as on organic beverages, with a rising number of consumers willing to spend more to consume premium, high-quality beverages.
  • There is also an increasing emphasis on organic claims. With the growing popularity of organic products and organic certifications, manufacturers in categories that were previously unaffected such as bottled water are highly focused on making organic claims. This is mainly due to the need to cater to consumers who are health conscious and are looking for assurance on their products. For instance, bottled water brands like blk and TRACE have an organic certification, while also bearing claims such as Certified Kosher, gluten-free and non-GMO, even though these products are naturally gluten-free and non-GMO unless contaminated during the manufacturing or bottling processes.
General Economics And Demographic Landscape

Economy:

  • Canada's economy is expected to witness a moderate increase in 2020, with real GDP growth reaching 1.6%, similar to 2019 levels. Private final consumption is expected to increase by 1.5% in 2020, the same as in 2019.
  • Wage growth is witnessing an increase. However, consumer spending is growing at a slower rate than income, due to high household debt and slow credit growth pushing consumers to be more cautious.
  • Unemployment is expected to increase to 5.9% in 2020 from its 2019 rate of 5.7% on the back of a decline in business investment, reduction in domestic demand and cuts in the oil and gas sector, leading to a larger proportion of the population losing out on jobs, normalizing the reported wage growth.
     

Population demographics:

  • With an approx. 1.0% slowdown in the birth rate and the death rate remains the same as in 2018, the population of Canada is growing at a decelerating pace, reaching 37.4 million in 2019. The country is also witnessing an increase in median age, reaching 41 years in 2018 from 36.8 years in 2000.
  • Immigration is a critical component in the demographics of Canada, with approx. 20.0% of Canada's population is foreign-born. Canada leads in terms of immigration rates among major economies.
  • With a decline in birth rates, Canada is also experiencing ageing at an increasing pace. In 2030, 23.1% of the population is expected to be over 65 years of age compared to 17.6% in 2019.
     

Income & expenditure:

  • The savings ratio in Canada is highly concerning, reaching -0.8% of disposable income in 2019 post a ratio of -1.2% in 2018. Consumer expenditure is expected to witness a marginal gain of 0.4% in 2020 in real terms with education being the fastest consumer category, followed by household goods and services.
  • For the period 2020-2030, consumer expenditure is expected to grow at an annual average of 1.7%, increasing by a cumulative value of 17.8% during that period. In 2020, consumer expenditure is expected to represent 55.6% of GDP.
  • Disposable income is expected to witness a cumulative increase of 21.5% in real terms for the period 2020-2030, growing at an annual rate of 2.0%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

15,761.0

16,173.0

16,605.3

17,099.1

17,517.8

17,956.1

18,413.2

2.8%

2.5%

Organic packaged food and beverages consumption

USD million

1,211.9

1,314.1

1,411.4

1,518.1

1,624.3

1,728.8

1,834.3

7.8%

6.3%

Organic packaged food consumption

USD million

815.3

881.0

941.3

1,009.1

1,080.5

1,151.5

1,223.2

7.4%

6.4%

Organic beverages consumption

USD million

396.6

433.1

470.1

509.1

543.8

577.4

611.1

8.7%

6.0%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

7.7%

8.1%

8.5%

8.9%

9.3%

9.6%

10.0%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

36.1

36.5

37.1

37.4

37.7

38.0

38.3

% Middle and upper class of total population

%

29.7

29.7

29.7

29.7

29.7

29.7

29.7

% Population aged 65+

%

16.4%

16.8%

17.2%

17.6%

18.1%

18.6%

19.1%

% Population aged 0-14

%

16.2%

16.2%

16.1%

16.1%

16.1%

16.0%

16.0%

% Population with higher education degrees

%

44.2

44.5

44.8

45.1

45.3

45.5

45.7

Average number of children per household

children

0.5

0.5

0.5

0.5

0.5

0.5

0.5

GDP per capita

USD per capita

42,274.1

44,159.3

45,224.1

46,447.3

46,127.2

46,658.1

47,127.9

Consumer expenditure per capita (US$)

USD per capita

23,785.7

24,611.7

25,218.8

25,818.2

25,954.3

26,152.1

26,393.8

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

2,204.8

2,255.3

2,281.3

2,334.6

2,305.1

2,319.3

2,337.2

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Toronto

6.3

Top cities by population (2019)

2

Montreal

4.3

Top cities by population (2019)

3

Vancouver

2.6

Top cities by population (2019)

4

Calgary

1.5

Top cities by population (2019)

5

Edmonton

1.5

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

George Weston Ltd

Top grocery retailers by sales (2019)

2

Empire Co Ltd

Top grocery retailers by sales (2019)

3

Walmart Inc

Top grocery retailers by sales (2019)

4

Metro Inc

Top grocery retailers by sales (2019)

5

Liquor Control Board of Ontario

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Commodities To Canada

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Canada

1

Organic Lettuce Not Head Fr/Ch

43,418,657

2019

Canada

2

Organic Spinach Fr/Ch

34,313,167

2019

Canada

3

Organic Strawberries Fresh

31,950,595

2019

Canada

4

Organic Carrots Fr/Ch

26,459,464

2019

Canada

5

Organic Tomato Sauce Ex Ketchup

20,715,198

2019

Canada

Total

Total Organics*

296,872,727

2018

Canada

1

Organic Lettuce Not Head Fr/Ch

41,888,400

2018

Canada

2

Organic Spinach Fr/Ch

34,244,476

2018

Canada

3

Organic Strawberries Fresh

31,684,425

2018

Canada

4

Organic Carrots Fr/Ch

27,110,811

2018

Canada

5

Organic Tomato Sauce Ex Ketchup

23,112,136

2018

Canada

Total

Total Organics*

292,744,783

2017

Canada

1

Organic Lettuce Not Head Fr/Ch

42,337,610

2017

Canada

2

Organic Spinach Fr/Ch

33,613,338

2017

Canada

3

Organic Strawberries Fresh

27,083,029

2017

Canada

4

Organic Carrots Fr/Ch

25,308,320

2017

Canada

5

Organic Tomato Sauce Ex Ketchup

22,017,615

2017

Canada

Total

Total Organics*

261,012,489

2016

Canada

1

Organic Lettuce Not Head Fr/Ch

44,705,207

2016

Canada

2

Organic Spinach Fr/Ch

34,062,827

2016

Canada

3

Organic Carrots Fr/Ch

23,845,389

2016

Canada

4

Organic Strawberries Fresh

23,155,134

2016

Canada

5

Organic Tomato Sauce Ex Ketchup

18,451,867

2016

Canada

Total

Total Organics*

247,910,393


Note : Total organics is the sum of all exports in a particular year   
Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

Canadian Food Inspection Agency (CFIA)

Agency(s) Contact Information:

1400 Merivale Road
Ottawa, Ontario K1A 0Y9
Telephone: 1-800-442-2342 / 613-225-2342
TTY: 1-800-465-7735
Fax: 613-228-6601
Web
Canada Organic Regime information

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

Canada has an Equivalency Agreement with the United States
Agreement information from Canada
Agreement information from the United States

Canadian Organic Products Regulations, 2009 SOR/2009-176
Canadian Organic Production Systems General Principles and Management Standard
Canadian Organic Production Systems Permitted Substances Lists

Canada Organic Aquaculture Standard (CAN/CGSB-32.312-2012) will be mandatory beginning January 15, 2019. Regulations allow for a 24-month transition period ending in 2021. 

Canada has Equivalency Agreements with European Union, Costa Rica, Japan, and Switzerland as well.

Date of Implementation: 2009

Regulation and/or Standard Scope:

Regulations apply to food and drink intended for human consumption and food intended to feed livestock, including agricultural crops used for those purposes. They also apply to the cultivation of plants. Standards encompass crops, livestock, apiculture, maple products, mushrooms, sprouts, greenhouse crops, and wild crops, as well as processing and handling. Wines sold in Canada may be labeled as organic even if they contain sulfites.

Beginning January 15, 2019, organic aquaculture products will be required to comply with the Organic Aquaculture Standard CAN/CGSB-32.312 Organic Production Systems –Aquaculture – General principles, management standards and permitted substances lists incorporated by reference in the Safe Food for Canadians Regulations (SFCR). The 24 month transition period ends January 15, 2021. Aquaculture products are not within the scope of of Canada's current international organic equivalency arrangements. Some fresh fruits and vegetables grown with aquaponic techniques could potentially meet either CAN/CGSB-32.312 Organic Production Systems – Aquaculture – General principles, management standards and permitted substances lists or CAN/CGSB 32.310 – Organic Production Systems – General Principles and Management Standards.

Imported Products

A product may be imported or marketed in Canada as an organic product if it is certified as organic by a certification body recognized by a country with which Canada has an import/export arrangement, and the certification is in accordance with the agreement or arrangement referred to in that paragraph. Canada has equivalency agreements with the United States, the European Union, Costa Rica, Japan, and Switzerland.

Canada's regulations prohibit the use of sodium (Chilean) nitrate, and the equivalency agreement with the United Statesincludes all USDA organic products, whether they are produced and certified in the US or around the world. USDA-authorized certifying agents may not certify Canada-based operations to USDA organic standards. The agreement requires that raw organic produce imported be grown without its use. Hydroponic or aeroponic raw produce cannot be sold as organic in Canada. Agricultural products derived from animals (with the exception of ruminants) must be produced according to livestock stocking rates as set out in Canada's organic requirements.

Canada does not have a "100 percent organic" claim for products, so US products sold in Canada must not make this claim. All imported products must comply with all of Canada's packaging and labeling rules. Therefore, finished goods must be relabeled to gain entry and distribution. For example, labels must in both French and English.

Both the 'Canada Organic Biologique Canada' logo and the 'USDA Organic' seal may be used on products entering Canada, provided the products contain at least 95% organic ingredients and meet all the other NOP labeling requirements for the 'USDA Organic' seal. If the 'Canada Organic' seal is used, either the country of origin or 'imported' must appear near the seal. Products that contain 70-95% organic ingredients can state the percentage of organic ingredients on the product label as % organic ingredients. U.S. labeling for 'Made with. . .' organic products will not meet Canada's requirements.

Certification and Accreditation

Certification:

Lists of approved certifiers, both within and outside Canada.

Accreditation:

The CFIA oversees, monitors and enforces the requirements of the Canada Organic Regime using a third-party service delivery model that includes conformity verification bodies, certification bodies and organic operators. (List of conformity verification bodies). Currently, there are four conformity verification bodies:
Certified Organic Associations of British Columbia (COABC)
Committee on Accreditation for Evaluation of Quality (CAEQ)
International Organic Accreditation Service (IOAS)
Standards Council of Canada (SCC)

Additional Information

Reference Standards:

https://www.canada.ca/en/health-canada/services/food-labelling-changes.html?_ga=2.155627196.680039101.1500998728-994919703.1486071903#a5

Additional Information:

Canada is on the EU's third country list.

Health Canada Food Labeling Changes (2017)
USDA's Gain Report Health Canada publishes templates for updated Nutrition Facts Tables and List of Ingredients Requirements (2017)
USDA's Gain Report Canada Exporter Guide (2019)
USDA's Gain Report Canada Retail Foods Retail Sector Overview (2019)
USDA's Gain Report Food and Processing Sector in Canada (2019)
USDA's Gain Report Food Service - Hotel Restaurant Institutional HRI (2020)
USDA's Gain Report Industrial Hemp Production Trade and Regulation (2018)
USDA's Gain Report Fresh Deciduous Fruit Annual (2016)
USDA's Gain Report Food and Agricultural Import Regulations and Standards - Narrative (2016)
USDA's Gain Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2020)
USDA's Gain Report Food and Agricultural Import Regulations and Standards Country Report (2020)

Canada Organic Trade Association Report Organic Agriculture in the Prairies (2018)
Organic Dairy Industry in Canada 2012 report from Agriculture and Agri-Food Canada.