Packaged food is the new trend. Whether it is a busy morning or a late night snack, packaged food comes to rescue. Several studies haven been conducted on this and almost all have confirmed that the snacking trend has intensified over the past few years. This trend is one of most important factor, which has driven the growth in the packaged food segment. This trend has presented the market with both opportunities of growth and challenges to tackle.
The market research report “Packaged Food in Canada“, says that the Canadian dollar depreciated in early 2016 because of the falling oil prices. Moreover, since most of the raw materials were imported by Canada from USA, the prices of fresh food products have increased and packaged food has come up as an alternative to them, giving a boost to the sale of packaged food in Canada. In addition, to maintain the profitability when the price of raw material was rising, the manufacturers has increased their prices of reduce the package sizes.
The packaged food market can be categorised into several different segments. Baby food, baked goods, breakfast cereals, confectionary, dairy, edible oils are few of the traditional segments in this market. Ice creams, frozen food, processed fruits and vegetables, processed meat and seafood, rice, pasta, noodles, soups, snack bar and few of the newer products which are becoming popular amongst customers and growing significantly in terms of sale volume. Agropur Cooperative, Saputo, Kellogg, General Mills, Hershey Canada are few of the major players in this market which are constantly evolving their brands and products to increase their customer base and hence, revenue. Hypermarkets like Wal-Mart Canada and mixed retailers like Costco Wholesale Canada are the leading distributing channels in packaged food industry in Canada. A few other Canadian grocery chains like those that Metro, Sobeys and Loblaw have also done well are seeing growth in their sales. E retailing is seeing exponential growth rates in past few years and major grocery chains are establishing their online stores to capture this segment.
Since the oil prices are now stabilizing, the Canadian dollar is strengthening again, which is improving the profitability in the Canadian packaged food industry. Since, the Canadian economy is strengthening with rising income levels and demand for more quality products, the packaged food industry has a huge opportunity to capture this demand and see some exceptional growth in its sales.
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Ankur Gupta, Head Marketing & Communications