Rice, Pasta and Noodles in Canada

PROSPECTS

Demographic changes present both challenges and opportunities

As a country of immigrants, Canada takes pride in its multiculturalism and the influx of immigrants in recent years, the majority of which came from East, South and Southeast Asia. This posed a challenge to the growth of pasta but offered support to the growth of rice and noodles, as they are more commonly consumed in their home countries.

Pasta remains stagnant, whilst rice and noodles experience better growth

Health-consciousness continues to rise in Canada, and significantly impacted consumers’ choices of foods and beverages over 2017-2018. In rice, pasta and noodles, increasing interest in a gluten-free diet negatively impacted the consumption of pasta, which is also a relatively mature category, with high household penetration.

Consumer convenience and snacking remain areas of focus

Canadian consumers, especially the younger population, are starting to shift from eating regular meals to a mixture of meals and snacks, boosting the snacking trend over the last few years. Rising health-consciousness has also led to a greater focus on healthier snacking options.

COMPETITIVE LANDSCAPE

Catelli Foods Corp and Mars Canada lead

Catelli Foods Corp and Mars Canada remained the two leading players in rice, pasta and noodles in value terms in 2018, holding double-digit value shares. Catelli Foods has a strong hold in pasta thanks to its Catelli and Olivieri brands.

Catelli Foods Corp is active in new product development

To drive growth in the stagnant pasta category, Catelli Foods Corp was very active in terms of new product development. Its latest efforts were geared towards pasta alternatives, with its Catelli Protein range, which won 2018 Best New Product from BrandSpark in the Specialty Pasta category, as well as its Catelli SuperGreens Pasta.

Smaller players thrive in growing niche segments

Despite the overall weakening of growth in pasta, niche segments with outstanding growth potential, including premium pasta alternatives and health and wellness products, have attracted an expanding list of players over the last few years. For example, Chickpea Pasta from Ontario-based Earth to Kids, made from organic chickpeas and lentils, saw explosive growth from 2016, supported by the widening of distribution and the favourable response from consumers.

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