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Organic packaged food continued to record solid value growth in Canada in 2019, with little sign of a slowdown. Organic lifestyles are increasingly adopted by Canadian consumers and range from purchasing single organic offerings from particular packaged food categories to adopting a completely organic lifestyle, including entirely organic meals.
Retailers in Canada continue to increase their focus on organic products to meet the growing consumer demand. Most retailers have significantly expanded the shelf space they allocate to organic ranges and/or have enhanced the organic offerings within their private label lines.
Organic products continue to make inroads in a variety of packaged food categories in Canada. In stagnating or declining categories such as sugar confectionery, processed meat and baked goods, organic has been among the niche growth areas, aligning with the consumer desire for healthy indulgence and less guilt.
While Loblaw Cos Ltd remained the top player in fairly fragmented organic packaged food in 2019 due to its leadership of several categories, including organic edible oil and organic rice, Agropur Cooperative Ltd maintained its strong position due to its leadership of organic dairy, the biggest category in value terms. The company is noted for being one of the few early adopters of organic standards in packaged food.
Brands and manufacturers that focus exclusively on organic packaged food are growing. Organic continues to present valuable opportunity for smaller, niche players as their concentration on offering healthy, local food and small batch production appeals directly to consumers.
While organic packaged food products are typically priced higher, the growing scale of production and distribution as well as the increasing focus that retailers place on organic products within their private label ranges will result in a slowdown in price inflation. In a number of categories, these factors may even contribute to price decline.
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Overview: Discover the latest market trends and uncover sources of future market growth for the Organic Packaged Food industry in Canada with research from Euromonitor's team of in-country analysts.
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The Organic Packaged Food in Canada market research report includes:
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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.