COUNTRY PROFILE
Discover more about the Canada market including overviews about the retail, foodservice, and food processing sectors. Events, resources, and more are linked throughout the profile.
1st
top market for U.S processed foods
$16.5 Billion
total of U.S. processed foods imports in 2024
30%+
total U.S. processed food exports sold to Canada
Focus Economics reports that Canada has a developed market economy, which is among the top 10 largest in the world (US$2.1 trillion) in nominal Gross Domestic Product (GDP) terms.
Canada’s population growth is slowing, and its median age is rising. CBC News Canada reports that by 2036 immigrants are projected to be about 30% of Canada’s population. In 2024, 21% of total population was over 65 years of age compared with 18.9% in 2020.
The United States-Mexico-Canada agreement (USMCA) entered into force on July 1st, 2020, however, on February 1, 2025, President Trump signed an executive order imposing tariffs on Canadian imports. Trade negotiations between the U.S. and Canada are ongoing.
In 2024, U.S. agricultural exports to Canada totaled US$28.3 billion. Canada is also by far the top market for U.S. processed food exports, totaling more than US$16.9 billion in 2024. 16% of total U.S. food and agricultural product exports of US$174.8 billion. Canada is also by far the top market for U.S. processed food exports, totaling more than US$16.5 billion in 2023, growth of 2% and nearly 59% of their agricultural total.
Top U.S. processed food exports to Canada in 2024 included:
12th
largest packaged food market in the world
80%
of the retail market comprised of five retailers
$86.6 Billion
estimated in sales of packaged goods by 2029
According to Euromonitor, retail sales in the packaged food market reached US$65.6 billion in 2024, making Canada the 12th largest packaged food market in the world and is expected to reach over US$86.6 billion by 2029.
Canada’s retail market is mature and largely consolidated, with five retailers—Loblaws, Sobeys, Metro, Costco and Walmart—comprising nearly 80% of the total retail grocery market. The remainder of the market is represented by smaller regional retail chains that include over 6,500 independents and 25,000 small and independent convenience stores. More importantly, they also rely on these intermediaries to manage the relationship with U.S. companies and to guide U.S. companies through required compliance steps, the nuances of the Canadian retail market, and development of promotional strategies to help sell the product in Canada.
FAS Post Ottawa reports that top product categories with good sales potential include cooking ingredients and meals, snacks, baked goods, processed fruit and vegetables, pasta, rice and noodles, pet food, non-alcoholic and alcoholic beverages.
$85 Billion
total foodservice sales in 2023
FAS Post Ottawa reports that in 2023, hotel, restaurant and institutional (HRI) foodservice sales amounted to US$85 billion, both commercial and non-commercial foodservice sales, reflecting a 10% increase from the previous year.
The foodservice sector is comprised of two major segments: the commercial and noncommercial subsectors. The commercial subsector includes quick-service restaurants, full-service restaurants, caterers, and drinking establishments, represents 80% of total foodservice sales, while the non-commercial subsector, serving institutions such as schools and hospitals, comprises the balance.
FAS Post Ottawa reports that with Canada’s growing sentiment for maintaining a healthy lifestyle, consumers seek the traditional menu items but with a healthy twist. Additionally, many young consumers seek sustainably grown menu items that offer clean ingredients. Many ethnic restaurants and food outlets cater to the immigrant diaspora.
8,500
food-processing establishments
50%
of Canada’s total imports of consumer-oriented products in 2023 from U.S. companies
92%
of Canada’s food-processors are small companies
FAS Post Ottawa reports that Canada’s food-processing industry is comprised of 8,500 establishments. Approximately 92% of them are small companies with less than 100 employees. Canada’s processors source locally whenever possible, however they continue to rely on a wide range of imported ingredients.
FAS Post Ottawa reports that the top three consumer-oriented agricultural categories included prepared and processed foods, fresh and processed vegetables, and fresh and processed fruit.
