Natural and Organic Foods and Beverages in Canada

Sep 26, 2014
118 Pages - Pub ID: LA5199400
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Natural and Organic Foods and Beverages in Canada

Canadian consumers have embraced natural and organic foods, and that market has enjoyed consistently strong growth in the past five years.

In our new report, Natural and Organic Foods and Beverages in Canada, Packaged Facts examines the sales and demographic trends that have influenced – and will continue to affect – growth in this segment. One of these trends is the popularity of natural foods among Canadian consumers. Unlike in the U.S., where organic foods have the lion’s share of sales, in Canada natural foods take a majority slice. The natural category finally managed to surpass the organic category in 2013, comprising just over 50% of all natural and organic food and beverage sales on the strength of a typically lower price point coupled with higher Canadian consumer confidence in “natural” claims over products certified as organic.

While market growth was slightly lower at 8.7% in 2014 due to a slightly cooler Canadian economy, Packaged Facts forecasts a CAGR of over 11% between 2014 and 2019 for natural and organic food and beverage sales in Canada, with millennials and South Asian and Chinese ethic groups helping to spur growth. Product segments that will grow faster than the overall market include organic baby foods and fair trade organic coffee, as well as meats with natural and Certified Humane labels. Non-GMO labeling for both natural and organic products will also be a strong marketing tool over the forecast period.

Natural and Organic Foods and Beverages in Canada contains comprehensive data on the Canadian market for natural and organic foods and beverages, including historical (2009-2013) and forecasted (2014-2019) retail sales quantification. The report discusses key trends affecting the marketplace, trends driving growth, and consumer demographics. In addition, the report profiles major natural and organic product producers.

Report Methodology

The information in Natural and Organic Foods and Beverages in Canada is based on primary and secondary research. Primary research entailed in-depth, on-site examinations of retail outlets and interviews with companies, distributors, and retailers to obtain information on new product and packaging trends, marketing programs, distribution methods, and technological breakthroughs. Secondary research entailed data gathering from relevant sources, including consumer and industry publications, newspapers, government reports, company literature, and corporate annual reports. Sales of packaged products are based on available sales data from publicly traded marketers of natural and organic products, estimates reported in the trade and consumer press, industry experts, and participating manufacturers and retail outlets. Consumer findings are derived from Packaged Facts’ proprietary survey conducted in May 2014 expressly for this report, which provides current data on consumers’ purchasing habits, preferences, and perspectives.

What You’ll Get in This Report

Natural and Organic Foods and Beverages in Canada makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective players can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Natural and Organic Foods and Beverages in Canada offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables, and graphs.

How You’ll Benefit from This Report

If your company is already doing business in the natural and organic food and beverage market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for natural and organic foods and beverages in Canada, as well as projected markets and trends through 2019.

This report will help:
  • Marketing managers identify market opportunities and develop targeted promotion plans for natural and organic foods and beverages.
  • Research and development professionals stay on top of competitor initiatives and explore demand for natural and organic foods and beverages.
  • Advertising agencies working with clients in the banking and retail industries understand the product buyer to develop messages and images that compel consumers to buy natural and organic groceries.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers, and other colleagues with the vital information they need to do their jobs more effectively.
Chapter 1 Executive Summary
Scope & Methodology
Market Size and Segmentation
Table 1-1 Organic/Natural & All Retail Food/Beverage Sales in Canada, 2009–2013(in percent and million dollars)
Market Segmentation
Organic Foods & Beverages Carry a Premium Price
Opportunities for Organic and Natural Foods and Beverages
Marketers
Mergers & Acquisitions
Canada’s Organic Producers
Table 1-2 Organic Operators in Canada, 2004–2011 (in number of operators)
Price, Unlevel Playing Field against “Natural” Top Concerns of Organic Marketers
Advertising & Marketing Trends
Natural Claims Stronger than Organic Claims for Meats
Marketers Combining Organic and Natural with Free-From Claims
Marketing and Retail Trends
Consolidation among Retailers
The Supermarket/Grocery Store Channel
Food & Beverage Sales in the Mass Merchandiser Channel
Natural Channel Fragmented but Strong in Canada
Natural & Organic Foods & Beverages in Other Channels
New Product Launches
Macro Trends in New Product Launches: Transparency & Non-GMO
Product Segment Trends: Snacks, Beverages, & Cereals
Consumer Trends
Many Reluctant to Pay More for Organic Groceries
Demographics of Organic Buyers
BC, Ethnic Groups, Millennials Key Growth Demographics for Organics
Chapter 2 Market Projections and Opportunities
Key Points
Scope of the Report
Definition of “Natural” & “Organic”
Methodology
Opportunities for Organic
Ethnic Markets & Retailers
Millennials
Illustration 2-1: Peanut Butter & Co’s Advertisement for Dark Chocolate Dreams Natural Peanut Butter
Coffee
Baby Food
Illustration 2-2: Love Child’s new power yo’rridge organic baby food combining yogurt and grains with puréed fruits.
Opportunities for Natural
Meat & Protein
Table 2-1 Percentage of Ethnic Groups Willing to Pay Premiums for Organic & Natural Meat Products, 2012 (in percent)
GMO Without Being Organic
Forecast
Table 2-2 Canadian Retail Sales of Natural and Organic Foods and Beverages, 2014-2019 (in
million dollars)
Chapter 3 Market Size and Segmentation
Key Points
Methodology for Sales Estimates
Organic/Natural Food & Beverage Market Enjoying Strong Growth
Table 3-1 Organic/Natural & All Retail Food/Beverage Sales in Canada, 2009–2013 (in percent and million dollars)
Figure 3-1 Canadian Natural & Organic Foods & Beverages Market, 2009–2014P (in million $)
Natural a Stronger Market in Canada Compared to U.S.
Figure 3-2 Natural vs. Organic Sales in Canada & the U.S., 2009-2014P (in percent)
Market Segmentation
Figure 3-3 Canadian Retail Sales of Natural and Organic Foods and Beverages by Product Segment, 2013 (in percent)
Types of Organics bought
Figure 3-4 Types of Organic Groceries Purchased (Excluding Fruits & Vegetables), 2014 (in percent)
Growth in Top Organic Packaged Goods Categories Slower Than Organic Market Average in Retail Channels
Organic Soya and Coffee lead Organic & Natural Beverage Sales
Organic & Natural Dairy Products
Table 3-2 Domestic Organic Milk Production, 2007/08–2012/13 (in hectoliters)
Organic Foods & Beverages Carry a Premium Price
Figure 3-5 Price Premium Charged for Organic Foods, 2012 (in percent)
Table 3-3 Organic Raw Milk Premium Paid by Processors by Province, 2012 (in cents per liter)
Those Buying Organics Tend to Purchase a Lot
Figure 3-6 Amount of Organic Groceries Purchased per Week, 2014 (in percent)
Figure 3-7 Comparison of Weekly Organic and All Food & Beverage Purchases, 2014 (in percent)
Imports a Significant Part of Organic & Natural Sales in Canada
Table 3-4 U.S. Tracked Organic Exports to Canada, 2011–2013 (in million $)
Chapter 4 Marketers & Advertising
Key Points
Mergers & Acquisitions
Table 4-1 Mergers & Acquisitions of Natural & Organic Food & Beverage Marketers, 2013–2014
Competitor Brief: Holy Crap Cereal (Sechelt, BC)
Competitor Brief: Liberté (St. Hubert, QC)
Illustration 4-1: Liberté’s 2.5% Plain Organic Yogurt
Competitor Brief: Organic Meadow (Guelph, ON)
Competitor Brief: One Degree Organic Foods (Abbotsford, BC)
Illustration 4-2: One Degree Organic Foods’ Ancient Whole Wheat Bread
Canada’s Organic Producers
Figure 4-1 Certified Organic Farms by Region & Product, 2011 (in percent & number of farms)
Little Growth in Number of Domestic Organic Operators
Table 4-2 Organic Operators in Canada, 2004–2011 (in number of operators)
Advertising & Marketing Trends
Illustration 4-3: Blue Goose Pure Food’s “Certified Humane” whole chicken
“Think Before You Eat – Think Canada Organic!”
Natural Claims Stronger than Organic Claims for Meats
Table 4-3 Meat Purchasing Factors (Excluding Price, Origin), 2012
Price, Unlevel Playing Field Against “Natural” Top Concerns of Organic Marketers
Figure 4-2 Market Challenges for Organic Businesses, 2012 (in percent)
Marketers Combining Organic and Natural with Free-From Claims
Table 4-4 Other Free-From Claims on New Natural & Organic Product Announcements, 2013
Illustration 4-4: Hain Celestial’s Imagine Natural Creations Brand Hearty Beef Barley Soup
Organic & Natural Face Uphill Battle Against GMO Products/Ingredients
Regulations
Table 4-5 Allowable Canadian Organic Claims & Natural Definitions
Cost, Complexity Preventing Many Producers from Certifying Organic
Difficult for Organics to escape Pesticide Residues
No Plans to Regulate Natural in Canada
Chapter 5 Marketing and Retail Trends
Key Points
Consolidation among Retailers
Sobeys Extends its Grocery Holdings
Loblaw Branches Out by Buying Shoppers Drug Mart
Grocery Stores Losing Ground to Mass Merchandisers in Food Sales
Figure 5-1 Retail Food Sales in Canada by Channel, 2009 & 2013 (in percent)
Grocery Prices in Canada to See Only Marginal Increases in 2014
Table 5-1 Food Price Forecast, 2014 (in percent)
Where do Organic Grocery Buyers Shop?
Figure 5-2 Organic & Non-Organic Shopping by Channel, 2014 (in percent)
The Supermarket/Grocery Store Channel
Table 5-2 Retail Food Sales in Food & Beverage Stores, 2009–2013 (in million dollars)
Sobeys Stocks Certified Humane Meats
Food & Beverage Sales in the Mass Merchandiser Channel
Target’s Push into Canadian Food Sector Falters
Walmart Driving Down the Cost of Organics … But Not in Canada
Natural Channel Fragmented but Strong in Canada
Competitor Brief: Whole Foods
Natural & Organic Foods & Beverages in Other Channels
Farmers’ Markets
Illustration 5-1: Calgary Farmers’ Market Summer 2014 Ad Campaign
Online Grocery Sales
Chapter 6 New Product Trends
Key Points
New Product Launches
Table 6-1 New Food & Beverage Products with Natural & Organic Claims by Segment, 2013 (by product count)
Product Launches Favor Natural Over Organic
Table 6-2 New Food & Beverage Products with Natural & Organic Claims, 2013 (by product & SKU counts)
Who is Introducing New Products in Canada?
Illustration 6-1: Whole Foods Market’s 365 Everyday Value Classic Vanilla flavored Organic Animal Cookies
Illustration 6-2: Annie’s Homegrown Organic Cinnamon Graham Cracker
Macro Trends in New Organic & Natural Products
Transparency in Ingredients
Illustration 6-3: Theo Chocolate Sea Salt 70% dark chocolate bar
Stevia over Sugar for Natural Foods & Beverages?
Illustration 6-4: Maverick Brands’ line of CoCo libre coconut waters
Non-GMO Interest Growing
Illustration 6-5: Beanitos Restaurant Style White Bean chip
Product Segment Trends
Snacks & Frozen Foods
Illustration 6-6: Amy’s meatless Italian sausage & mushroom Italiano Pizza
Illustration 6-7: DeeBee’s SpecialTea Foods’ Organic TeaPops
Illustration 6-8: Mama Chia’s Chia Squeeze vitality snack
Beverages
Illustration 6-9: Aronia juice in 300 ml glass bottle by Golijska Aronia Inc
Illustration 6-10: Oviva maple water
Using Natural/Organics to Improve Cereal’s Outlook
Illustration 6-11: Holy Crap breakfast cereal in a single serve cup
Illustration 6-12: Lotus Fine Foods quinoa granola cereals
Illustration 6-13: Sexcereal male and female cereal formulations
Organic Baby Foods
Illustration 6-14: Baby Gourmet’s Beetberry flavor Squoosh
Illustration 6-15: Little Duck Organics Tiny Fruits
Meats
Illustration 6-16: Schneiders Country Naturals Angus Burgers
Illustration 6-17: Pillar’s Simply Free Smoked Breakfast Ham
Chapter 7 Consumer Trends
Key Points
Methodology
Prevalence of Organic Grocery Purchasing Among Consumers
Figure 7-1 percentage of Certified Organic and Natural Food and Beverage Purchasers, 2014
Figure 7-2 Types of Certified Organic Groceries Purchased, 2014 (in percent)
Not Many Consumers are Willing to Pay More for Organic Groceries
Figure 7-3 Foods for which Consumers are Willing to Pay a Premium, 2014 (in percent)
Price, Lack of Faith Main Reasons for not buying organic
Figure 7-4 Reasons Shoppers do not Buy Certified Organic Groceries, 2014 (in percent)
Natural a more Valued Description than Organic with Consumers
Figure 7-5 Consumer Perceptions of Organic and “All Natural” Foods & Beverages, 2014(in percent)
Reasons for Buying Organic/Natural
Figure 7-6 Psychographics of Organic Grocery Purchasers, 2014 (in percent)
Other Values that Resonate with Organic Grocery Buyers
Figure 7-7 Food/Shopping Choices that Resonate with Organic Grocery Purchasers, 2014 (in percent)
Demographics of Organic Buyers
Table 7-1 Organic Grocery Shopper Demographics, 2014 (in percent)
BC the Strongest Regional Demographic
Figure 7-8 Certified Organic Grocery Shoppers by Region, 2014 (in percent)
Organic Popular with Millennials
Figure 7-9 Certified Organic Grocery Buyers by Age, 2014 (in percent)
Upper Middle Class a Strong Market for Organics
Figure 7-10 Certified Organic Grocery Shoppers by Income, 2014 (in percent)
Chinese, South Asian Shoppers More likely to Buy Organics
Figure 7-11 Certified Organic Grocery Shoppers by Ethnic Group, 2014 (in percent)

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