Organics was a rapidly developing area of the packaged food industry in Canada even before the outbreak of COVID-19. According to the Canada Organic Trade Association (COTA), two thirds of shoppers, mostly families, choose to buy organic products on a weekly basis, regardless of income level, and are buying from mainstream channels, including retailers such as Walmart and Costco instead of local markets.
Despite concerns over potential food shortages organic packaged food managed to come through relatively unscathed during 2020. A strong and established supply and distribution chain ensured consumers were still able to obtain organic packaged food during 2020, including key staples.
Despite the challenges presented by COVID-19, there remained strong interest in developing new organic packaged food at the end of the review period, with the demand continuing to rise rapidly. For example, Nature's Path Foods Inc looked to cement its dominance in organic breakfast cereals with the launch of Nature’s Path Regenerative Organic Certified Instant Oatmeal.
With an ever growing focus on healthy eating and clean labels it is expected that organic packaged food should continue to thrive over the forecast period. With the government showing a willingness and financial commitment to support local organic farmers this should also see more local producers enter the market over the forecast period.
Sales or organic packaged food are expected to stabilise in 2021 with the rolling out of COVID-19 vaccines providing some hope of an end to the crisis. After the stockpiling seen in 2020, there is likely to be a more measured approach to spending, albeit sales will still remain well above those seen in 2019.
COVID-19 is likely to have a more long-term impact on the shopping behaviour of consumers in Canada, including when it comes to organic packaged food. On one hand, it has placed a stronger focus on food hygiene, with COVID-19 believed to have started in a wet market in China.
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Understand the latest market trends and future growth opportunities for the Organic Packaged Food industry in Canada with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Organic Packaged Food research and analysis database.
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