Open to Imports
  • The total market size for organic packaged food and beverages in Canada in 2017 is US$1,310.5mn, ranking it as the 7th largest market in the world by value.
  • Per capita spending on organic packaged foods and beverages in Canada is US$35.77, which ranks as the 10th largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Luigi Lavazza SpA, which maintains 7.0% of total sales. Lavazza is followed by Saputo Inc and artisanal producers.
  • Organic packaged food and beverages in Canada will see moderate year-on-year growth of close to 6% in 2018, which is on par with the rest of the North America region.
  • Canada maintains a market size for organic packaged food and beverages of US$1,310.5mn in 2017, which is 3.2% of global category sales.
  • Within the North America region, the USA surpasses Canada in total value sales of organic packaged food and beverages.
  • Canada will experience moderate forecast growth of sales of organic packaged food and beverages, at a 5.8% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Canada in 2017 is US$1,310.5mn, ranking it as the 7th largest market in the world by value.
  • Canadian consumers’ increasing health consciousness and focus on social and environmental responsibility are driving sales growth.
  • As the Canadian organic product market matures, expect to see price increases and value growth, although volume sales are forecast to slow.

Market Trends

Competitive Landscape

  • The Canadian organic packaged food and beverage landscape is highly fragmented.
  • In 2017 the organic packaged food market leader in Canada was Saputo Inc, with a 9.5% value share, largely due to the strength of its Dairyland brand.
  • The leading company in organic beverages is Lavazza SpA, Luigi, with its popular Kicking Horse coffee brand.

Prospects and Growth Opportunity

  • Organic packaged food and beverage sales value will continue to grow in coming years, as the health and wellness trend continues and consumers become increasingly environmentally conscious.
  • Sweet biscuits, snack bars and fruit snacks are projected to post the highest rate of value growth among organic packaged food categories through 2022, and coffee will be the fastest growing organic beverage category.
  • Organic sports drinks and organic RTD tea with specific health benefits may also present growth opportunities in coming years.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy:

  • Canada outperformed the Group of Seven industrialized economies during the 2008–2009 recession and its aftermath; however, the country’s pace of growth slowed in more recent years due to a housing correction and the end to the commodities boom.
  • Real GDP will grow by 2.3% in 2018 after gains of 3.2% in 2017, driven by private consumption.
  • Unemployment was 6.4% in 2017, and it will drop to 6.1% in 2018.

Population demographics:

  • Canada’s population reached 36.6 million in 2017.
  • Immigration accounts for more than 50% of Canada’s population gains and will be responsible for virtually all growth in the labor force in the future.

Income & expenditure:

  • Consumer expenditure per capita amounted to C$32,344 (US$24,403) in 2017.
  • Health goods and medical services will be the fastest-growing consumer category during the 2018-2030 period, follow by communications.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

   16,572.0

   17,012.6

   17,449.5

   17,947.6

   18,400.4

   18,875.3

   19,365.5

2.7%

2.6%

Organic packaged food and beverages consumption

USD million

     1,053.8

     1,127.5

     1,217.6

     1,310.5

     1,384.9

     1,472.1

     1,559.7

7.5%

6.0%

Organic packaged food consumption

USD million

        719.7

        764.2

        818.6

        875.2

        912.9

        963.6

     1,015.4

6.7%

5.1%

Organic beverages consumption

USD million

        334.0

        363.3

        399.0

        435.4

        472.0

        508.5

        544.4

9.2%

7.7%

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

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

          35.5

          35.8

          36.3

          36.6

          37.0

          37.4

          37.7

% Middle and upper class of total population

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

% Population aged 65+

%

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

% Population aged 0-14

%

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

% Population with higher education degrees

%

            0.4

            0.4

            0.4

            0.4

            0.4

            0.4

            0.4

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

   43,145.2

   42,880.9

   43,225.6

   45,011.2

   45,527.4

   45,943.9

   46,294.0

Consumer expenditure per capita (US$)

USD per capita

   23,080.4

   23,670.6

   24,249.2

   25,328.7

   25,626.6

   25,807.7

   25,971.6

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

USD per capita

     2,131.7

     2,201.0

     2,217.9

     2,311.2

     2,329.2

     2,338.3

     2,346.7

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

Toronto

             6.3

Top cities by population (2017)

2

Montreal

             4.2

Top cities by population (2017)

3

Vancouver

             2.6

Top cities by population (2017)

4

Calgary

             1.4

Top cities by population (2017)

5

Ottawa - Gatineau

             1.4

Top grocery retailers by sales (2017)

1

Walmart Supercenter

 -

Top grocery retailers by sales (2017)

2

Safeway

 -

Top grocery retailers by sales (2017)

3

Sobeys

 -

Top grocery retailers by sales (2017)

4

Foodland

 -

Top grocery retailers by sales (2017)

5

LCBO

 -

USDA GATS data

Rank

2017

2016

2015

2014

  Export Value (US$, thousands)

1

Lettuce

39,160.0

Lettuce

44,707.0

Lettuce

52,340.0

Lettuce

67,806.0

2

Spinach

30,847.0

Spinach

34,066.0

Spinach

34,746.0

Spinach

35,255.0

3

Carrots

23,050.0

Carrots

23,843.0

Carrots

25,176.0

Carrots

24,894.0

4

Apples

15,611.0

Apples

15,857.0

Strawberries

22,356.0

Strawberries

23,329.0

5

Strawberries

26,243.0

Strawberries

23,184.0

Apples

18,432.0

Apples

22,213.0

Total

241,597.0

247,904.0

258,435.0

265,059.0

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) is voluntary, unregulated and not included in Canada's equivalency agreements.

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. Aquaculture standards are voluntary, unregulated, and not part of Canada's equivalency agreements.

Imported Products Requirements

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: 

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 (2018)
USDA's Gain Report Canada Retail Foods Retail Sector Overview - 2017 (2018)
USDA's Gain Report Food and Beverage Processing Sector Overview (2018)
USDA's Gain Report Food Service - Hotel Restaurant Institutional HRI Market Report (2018)
USDA's Gain Report Fresh Deciduous Fruit Annual (2016)
USDA's Gain Report Food and Agricultural Import Regulations and Standards - Narrative (2016)

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

Definitions

Review definitions of terminology included in this website.