Several parts of Canada’s food sector are enjoying short-term booms, but challenges loom on the horizon. Three of the industries within the overall sector – food manufacturing, food services, and food retailers – are facing their own changes.
The food manufacturing and food services sector are both enjoying strong short-term growth in output and sales. Led by growth in limited-service and table-service restaurants, the food services industry continues to outperform previous expectations, mirroring the overall well-being in the Canadian economy.
The food manufacturing industry has benefitted from surging exports, supported by strong U.S. demand and a weak Canadian dollar. However, while the food manufacturing industry’s financial performance will remain strong over the medium-term, it will not maintain the same momentum it has produced over the last three years.
Grocery store sales have grown about 2 per cent on average in the past three years, well below the overall retail average of 4.5 per cent. Lower import costs in 2018 will allow industry margins to hover around 2 per cent—higher than in recent years.
Beneath the top-line results, each segment of the industry is facing new challenges, related to the breathtaking pace of technological change, the rise of new competitors, changes in international market access due to evolving trade agreements (e.g. free trade with Europe), and government policies as varied as minimum wage laws and healthy eating guides.
In this webinar, Robert Meyer-Robinson will present The Conference Board of Canada’s latest, exclusive Canadian Industrial Outlooks for Food Manufacturing, Food Services, and Grocery Stores. This analysis examines 5-year outlooks for key industry variables including production, prices, employment, revenues, costs, and profitability.