Entering The Canadian Food And Beverage Industry
The food and beverage sector in Canada generates more than 112 billion in production value, making it Canada’s second largest manufacturing industry.
In December, our team here at Pace Global Advantage (PGA) hosted a webinar to talk about how it can help Food & Beverage (F&B) exporters enter the Canadian market. With our expertise in market studies, industry reports, and extensive network of distributors and retailers in the F&B industry, we will be the perfect business partners for companies looking to explore Canada.
In 2018, food products constituted 4.5% of total import to Canada, and food and beverage sales exceeded US$96 billion representing a 3% increase compared to US$94 billion in 2017.
It is no surprise that the USA is the nation’s largest trading partner in terms of food imports – 61.12% of all imports to Canada are from the US. Canada’s proximity to the US and depth of regional economic integration are highly influential to its trade profile. The next two biggest trading partners are France (4.2%) and Italy (3.8%).
The quality of Canadian infrastructure outperforms the OECD average and is considered among the highest in the world. The high quality of administration and governance in Canada is in line with American and EU norms and standards which makes Canada an attractive destination for American and European exporters.
For new-to-market and new-to-export firms, Canada offers stable financial markets, a sophisticated logistics network, and a well-developed infrastructure between and within specific national markets, that supports $120 million worth of daily two-way trade in food and agricultural products.
The Canadian economy is inherently import-reliant for many types of primary, intermediate, and finalized goods and services which creates a conducive environment for international trade free of many kinds of trade barriers and restrictive practices.
The Canadian government has ambitious targets for food and agricultural exports by 2025, and Canadian demand for imported ingredients is expected to grow massively in the years to follow.