• Luigi Lavazza SpA leads the organic segment in Canada with a value share of 5.4% in 2023, followed by GURU Beverage Inc with a value share of 4.1% and Organic Meadow Inc with a share of 3.2%. 
• Canada ranks 7th globally in terms of market size, with a value of US$1,718.3 mn in 2023, trailing its neighboring market, the US.

• Organic products in Canada represent roughly 2.8% of global demand and 9.8% of the market in the North America region, recording a per capita expenditure of US$42.8 in 2023. 
• The Canadian market for organic products is projected to increase with a value CAGR of 3.9% for the forecast period 2023-2028 in 2023 constant prices with fixed USD exchange rates, reaching a value of US$2,079.9 mn by 2028.

• The Organic Packaged Food and Beverages category in Canada registered a value increase of 14.1% in 2023 in current prices to record a market size of US$1,718.3 million. 
• During the historic period of 2019-2023, the Organic Packaged Food category registered a CAGR of 4.8% in current prices. For the forecast period from 2023 to 2028, the growth is expected to continue, with a projected CAGR of just 4.3% in constant prices.
• Organic Beverages grew historically at 16.6% current CAGR, and its growth is expected to slow down significantly to 2.3% constant CAGR over the forecast period.
• Growth in Organic Packaged Food was primarily led by Organic Cooking Ingredients and Meals, which recorded an exceptional 8.0% current CAGR during the historic period. It is expected to accelerate further at a constant CAGR of 13.9% over the forecast period.
• Within Organic Beverages, Organic Soft Drinks drove historic growth with a current CAGR of 19.4%. As for the forecast period, Organic Hot Drinks is expected to drive growth with a projected constant CAGR of 3.4%.

• Health and wellness products continued to be bolstered by consumer desire to eat and drink better as a direct result of heightened health concerns in a trend accelerated by the COVID-19 pandemic. According to Euromonitor International's Voice of the Consumer survey from January-February 2024, 53% of Canadians look for healthy ingredients in food and beverages, and 37% claimed they actively monitor what they eat to manage their weight.
• Natural continues to be one of the most important health claims among Canadians, as they believe that mindful eating goes beyond simply eating healthy, as it also means considering food in a different light, with the focus on functional ingredients and food as medicine trends being exemplary of this. Natural products are regarded as better for one’s health, with both organic and gluten free remaining the most common claims used in combination with natural, mainly due to increasing consumer demand for clean-label and minimally processed foods.

• The popularity of products with various health claims will help boost the sales of fortified/functional foods and beverages, as many Canadian consumers will continue to prioritize products that offer health benefits or at least have minimal negative impact on health and wellbeing. Linked to fortified/functional claims are natural and organic, as they can exist harmoniously together in the same products as long as brands use natural ingredients and are transparent in their packaging and marketing.
• Across the forecast period, sales of Organic Cooking Ingredients and Meals are set to grow the most out of all organic categories, with retail sales projected to rise at a 13.9% constant value CAGR to reach US$478.3 million in 2028. Cooking ingredients are being closely examined from both consumers and regulatory bodies, with brands presenting themselves as clean with natural, organic ingredients and a short ingredients list, some of the desired characteristics for products in this category. Across the forecast period, Organic Meals and Soups will be the leading products in the Organic Cooking Ingredients and Meals landscape, reaching sales of US$282.9 million, supported by a forecast constant CAGR of 29.2%.

• Against the backdrop of an improving economic climate, and growing consumer concerns regarding sustainability and environmental impact, organic packaged food is forecast to exhibit a robust 6.2% CAGR over the forecast period, 2022-25. The Covid-19 pandemic bolstered the ongoing health and wellness trend in Canada. This continued growth will also be intensified by the Canadian government’s financial commitment to support local organic farmers, which will encourage more local producers to enter the organic market over the forecast period and benefit sales as there is also growing demand for locally produced food. However, towards the end of 2020 and 2021, some retail outlets faced issues in maintaining availability and ensuring a good supply chain, especially for organic honey, organic dairy, and organic edible oils. Therefore, increasing manufacturing capacity and maintaining supply and shelf presence will be key to the growth of organic packaged food over the forecast period. 
• Organic beverages are forecast to exhibit a strong 5.7% CAGR over the forecast period, 2022-25, benefiting from the health trend, which was accelerated by the Covid-19 pandemic. Organic coffee is set to be the key category that drives growth, with organic soft drinks and organic hot drinks set to witness strong performance as well. The pandemic has not only caused consumers to reflect on what they put into their bodies, but also on how what they eat and drink impacts the environment. Organic beverages which clearly position themselves as free from pesticides, herbicides, antibiotics, and GM ingredients, as well as being better for the environment due to the use of more responsible farming practices, are set to perform well over the forecast period. 
• However, organic beverages are set to face stiff competition from other health and wellness beverages with claims on their packaging, including fortified/functional and naturally healthy beverages. Organic beverages remain the smallest category within health and wellness beverages in both retail volume and current value terms, largely due to its relatively high prices in comparison to other health and wellness beverages. They achieve the best sales in more premium supermarket outlets, such as Metro. However, the growth of e-commerce is forecast to lead to a shift in sales to online channels over 2022-25. Investment from the large soft drinks manufacturers and other players will also be key to the success of organic beverages over the forecast period. 
• E-commerce is forecast to be a driver of organic packaged food and beverages sales over 2022-25, as the channel saw exponential growth in current value sales for organic packaged food and beverages in 2020, maintaining dynamic double-digit growth in 2021. Retailers and producers are increasingly investing in this space and the channel carries a larger organic product offering than most physical stores. E-commerce offers the opportunity for niche brands to gain attention and for players to reach out to a wider consumer base over the forecast period, 2022-25.

• Some Canadian consumers consider that their purchases reflect their own ethics and views and are taking pride in the transparency of their purchases. They prioritize products that claim to be good for the planet as well as products that contain simple and clean ingredients to benefit personal health. This is also reflected in the increasing importance of transparency in terms of origin and production methods, being a top priority for local consumers, especially when it comes to any added ingredients, as well as sustainable, ethical farming practices.
• Canada's new front-of-package nutrition labeling regulations will be mandatory for all products and companies starting January 2026. Introduced by Health Canada in June 2022, the regulation mandates that prepackaged foods high in saturated fat, sugars, or sodium display a specific nutrition symbol at the front of the package, which aims to help consumers make healthier food choices and reduce health risks associated with overconsumption of these nutrients. Designed for simplicity and consistency, the labels feature a black-and-white magnifying glass icon. This design’s uniformity in size, placement and bilingual presentation is intended to make it easily recognizable and understandable.

Economy: 

• Canada's economy is projected to continue its moderate growth, with an expected 1.3% increase in real GDP for 2025. Growth will be primarily attributed to export gains and inventory build-up amid tariff uncertainty from the US, however lower household spending and weak domestic demand suggest a downturn is coming.
• Real GDP growth is anticipated to continue the trend, reaching 1.5% in 2026 and averaging around 1.7% annually through 2028.
• Inflation closed 2024 at 2.4% and is expected to decelerate further to 2.2% in 2025.

 Population demographics: 

• Canada's population reached 41.3 million in 2024 and is projected to grow by 0.6% to 41.6 million in 2025. Canada’s median age is higher than its neighboring country, the US, by 0.9 years, highlighted by its percentage of population aged 65+ years old increasing from 17.9% in 2020 to 18.9% in 2024.
• The median age in Canada was recorded at 40.3 years in 2024, a decrease of 0.5 years from 2020. 

Income & expenditure: 

• The savings ratio in Canada reached 2.9 % of disposable income in 2024, continuing a steady upward trend in recent years, with wage growth outpacing the rate of inflation and Canadians preparing for a potential recession some of the main reasons for growth.
• Consumer expenditure per capita grew by 2.0% in 2024 in current USD terms. In constant USD, it is projected to grow at an average annual rate of 0.9% through 2028. This growth is likely driven by increased spending on communications, although housing is projected to remain the largest consumer spending category.
• Disposable income per capita was US$30,103 in 2024. It is expected to grow at an average annual rate of 1.1% through 2028, lower than the US for the same period.

¹ Health and Wellness Definition: 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.

The above definition and more can be referenced from the definitions table at the end of the report.

² Economic and Demographic Data has been updated to reflect final 2024 estimates, therefore using 2024 as the base year for exchange rates and prices. 

³ Historic current prices and forecast constant 2024 prices.

Top 5 Cities By Population

Top 5 Grocery Retailers By Sales

Top 5 Export Commodities To Canada

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

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

Name(s) of Regulation and/or Standard:

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

Canadian Organic Standards This link includes:

• General Principles and Management Standards (CAN/CGSB-32.310 - 2020)
• Permitted substances lists (CAN/CGSB-32.311 -2020)
• Aquaculture – General principles, Management standards and permitted substances lists (CAN/CGSB32.312 – 2018)
• Organic Standards Interpretation Committees.

The Canadian Standards for Organic Production (CAN/CGSB 32.310) and the Permitted Substances CAN/CGSB (32.311) are now incorporated into Safe Foods For Canadian’s Regulation.

Guidance documents for organic products.

Canada has Equivalency Arrangements with European Union, Costa Rica, Japan, Taiwan, Switzerland, United Kingdom, Mexico, and South Korea 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.

Since January 15, 2019, organic aquaculture products are 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). 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.

2025 Review of the Canadian Organic Standards.

Canada Organic Regime (COR) import requirements for all countries can be found here.

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 arrangements with the United States, the European Union, Costa Rica, Japan, Taiwan, Switzerland, the United Kingdom, Mexico and South Korea.

Canada/US equivalency arrangement import requirements
The equivalency arrangement with the United States includes all USDA organic products, whether they are produced and certified in the US or around the world. Canada's regulations prohibit the use of sodium (Chilean) nitrate. The agreement requires that raw organic produce imported be grown without its use. USDA-authorized certifying agents may not certify Canada-based operations to USDA organic standards. 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.

Requirements for documentation for organic products imported to Canada under Canada/US equivalency arrangement: https://inspection.canada.ca/organic-products/equivalence-arrangements/requirements/eng/1588111274513/1588111275200

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 two conformity verification bodies:
Committee on Accreditation for Evaluation of Quality (CAEQ)
International Organic Accreditation Service (IOAS)

Canada Organic Regime operating manual: The manual provides an overview of the procedure to be followed when the Canadian Food Inspection Agency (CFIA) and conformity verification bodies (CVB) enter into an agreement, as well as the procedure to accredit certification bodies (CB) and to certify organic products.

Additional Information:

Canada is on the EU's third country list.

U.S. International Trade Administration

Useful contacts and agencies

Canadian Food Inspection Service: Food-specific import requirements

Health Canada Food Labeling Changes (2021)
USDA's Gain Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2024)
USDA's Gain Report Food and Agricultural Import Regulations and Standards Country Report (2024)
USDA's Gain Report CARM Customs Program Mandatory in May 2024 (2023)
USDA's Gain Report New Certification of Origin Process Under USMCA (2020)
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 (2024)
USDA's Gain Report Canada Retail Foods (2024)
USDA's Gain Report Food and Processing Ingredients (2021)
USDA's Gain Report Food Service - Hotel Restaurant Institutional HRI (2024)
USDA's Gain Report Industrial Hemp Production Trade and Regulation (2018)
USDA's Gain Report New Border Assessment and Revenue Management Program for Importers (2022)
USDA's Gain Report Canada to Set Recycled Content Requirements for Beverage Containers and Other Plastic Items (2022)
USDA's Gain Report Canada Publishes Final Regulations Banning Single-Use Plastics (2022)
USDA's Gain Report Guidance and Resources on Canada's Front of Package Nutrition Labels (2022)
USDA's Gain Report Canada Publishes Front-of-Package Nutrition Labelling and Other Food Labelling Regulations (2022)
USDA's Gain Report Canada Publishes New Regulations for Supplemented Foods (2022)
USDA's Gain Report Guidance and Resources on Canada's Supplemented Foods (2022)

Canada Organic Trade Association Market Reports 
Canada Organic Trade Association Report Organic Agriculture in the Prairies (2020)