File Photo

File Photo

FCC report shows opportunity in changing food and beverage trends

Canada’s food and beverage sector may emerge even stronger in 2021

  • Apr. 12, 2021 12:30 p.m.

Despite some setbacks caused by the pandemic, Canada’s food and beverage sector may emerge even stronger in 2021, according to a new FCC report.

“The pandemic has brought losses that can never be recouped, but it has also opened a floodgate of opportunities for Canada’s food and beverage sector to become an even stronger part of the national economy,” said J.P. Gervais, FCC’s chief economist. “In many ways, the pandemic did not create these opportunities, but accelerated the tide of underlying trends that promote them.”

Despite the challenges posed by the pandemic, the report shows most economic indicators for the food and beverage processing sector are strong compared to other sectors of the Canadian economy.

Capital expenditures and employment in food and beverage processing, for example, fell less as a percentage than all industries combined.

The report also notes that higher disposable income and savings in 2020 will likely spur growth in food and beverage consumption once it is safe to fully reopen food services.

Success in containing the virus abroad also carries significant implications for Canada’s food and beverage processors, since more than 30 per cent of sales have gone to export markets over the past five years, according to the report.

Consumer trends and export markets offer a variety of opportunities for different parts of the food and beverage sector, which together represents the largest manufacturing employer in Canada with almost 300,000 workers.

It’s also the second largest manufacturing sector in terms of value of production with sales of goods manufactured worth $122.9 billion in 2020.

That year, the sector represented 1.8 per cent of the national Gross Domestic Product (GDP).

Grain and oilseed milling is expected to see the most significant increase in sales at 13.4 per cent, due to increased demand for edible oils, flour, and other baking products domestically and abroad.

Plant-based products are expected to capture a greater portion of food spending as part of a growing consumer trend.

Sugar and confectionary products are projected to see a 12.3-per-cent increase in sales for 2021 as consumers appear ready to indulge after going through various lockdowns, according to the report.

There are also projected sales increases for dairy products (5.6 per cent), beverages (4.9 per cent), processed seafood (4.7 per cent), meat products (4.6 per cent), and bakery and tortilla products (2.1 per cent) in 2021. Fruit, vegetables and specialty foods sales are expected to remain steady in 2021.

“The food and beverage processing sector showcased its resilience by adapting to the evolving trends and challenges posed by the pandemic,” Gervais said. “Government investments in food security and safety, along with low interest rates, a weak dollar and strong demand for healthy and high-quality Canadian food, could be the catalyst the sector needs to lead Canada’s economic recovery.”

By sharing agriculture economic knowledge and forecasts, FCC provides solid insights and expertise to help those in the business of agriculture and food achieve their goals.

For more information and insights, visit fcc.ca/Economics.

-Submitted

Just Posted

(File photo)
MLA Ron Orr on outing of two UCP members

MLAs Drew Barnes and Todd Loewen were voted out on May 13, 2021

Asymptomatic testing will now be available for "priority groups" who are most likely to spread the COVID-19 virus to vulnerable or at-risk populations. File photo by THE CANADIAN PRESS
Alberta adds 1,195 new COVID-19 cases Saturday

Red Deer has dropped to 760 active cases

Alberta’s chief medical officer of health Dr. Deena Hinshaw is asking Albertans to do their part by observing gathering limits, staying home if unwell, wearing masks and maintaining physical distance. (Photo by Chris Schwarz/Government of Alberta)
Three new Central zone COVID-19 deaths, Alberta adds 1,433 cases

Red Deer down to 802 active cases of COVID-19

Alberta’a chief medical officer of health Dr. Deena Hinshaw said Thursday that there are more than 328,000 vaccine appointments booked over the next seven days. (Photo by Chris Schwarz/Government of Alberta)
Alberta surpasses 2 million doses administered of COVID-19 vaccine

Red Deer down to 835 active cases of COVID-19

(Historica Canada)
VIDEO: Heritage Minute marks 100th anniversary of work to discover insulin

Video centres on Leonard Thompson, 13, the first patient to receive successful injections for Type 1 diabetes

Capt. Jenn Casey died in a crash just outside of Kamloops, B.C., on May 17, 2020. (CF Snowbirds)
Snowbirds to honour Capt. Casey, who died in B.C. crash, in 2021 tour

Tour will kick off in Ontario in June before heading west

A vial of AstraZeneca vaccine is seen at a mass COVID-19 vaccination clinic in Calgary, Alta., Thursday, April 22, 2021. Dr. Ben Chan remembers hearing the preliminary reports back in March of blood clots appearing in a handful of European recipients of the Oxford-AstraZeneca COVID-19 vaccine. THE CANADIAN PRESS/Jeff McIntosh
Science on COVID, VITT constantly changing: A look at how doctors keep up

While VITT can represent challenges as a novel disorder, blood clots themselves are not new

Welcoming cowboy boots at the historic and colourful Last Chance Saloon in the ghost town of Wayne near Drumheller, Alta., on Thursday, Sept. 19, 2019. The bar and hotel are up for sale. THE CANADIAN PRESS/Jeff McIntosh
‘It was a going concern’: Remaining bar and hotel in Alberta coal ghost town for sale

The historic Last Chance Saloon in the ghost town of Wayne in southern Alberta is up for sale

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Restrictions will lift once 75% of Canadians get 1 shot and 20% are fully immunized, feds say

Federal health officials are laying out their vision of what life could look like after most Canadians are vaccinated against COVID-19

Chris Scott, owner of The Whistle Stop Cafe, was put in handcuffs after an anti-restriction protest Saturday in the parking lot of the business. (Screenshot via The Whistle Stop Facebook page)
Alberta RCMP investigating possible threat to police after Mirror rally

Online images show RCMP members, vehicles in crosshairs of a rifle

An Israeli attack helicopter launches flares as he flies over the Israeli Gaza border, southern Israel, Thursday, May 13, 2021. (AP Photo/Ariel Schalit)
Singh calls for halt on Canadian arms sales to Israel as violence escalates in region

Government data shows Canada sent $13.7 million in military goods and technology to Israel in 2019

New homes are built in a housing construction development in the west-end of Ottawa on Thursday, May 6, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Budget’s foreign-homebuyers tax could bring in $509 million over 4 years, PBO says

Liberals are proposing a one per cent tax on vacant homes owned by foreign non-residents

Most Read