The Canada avocado market is projected to grow at a CAGR of 5.14% to reach US$123.988 million by 2025, from US$91.785 million in 2019. The consumers in Canada are increasingly inclined towards healthy, nutritious, and ‘clean’ products, which are inclusive of but limited to Natural, specialty, and organic products. These products have emerged as standard ‘center aisle’ products in larger grocery outlets.The increasing demand for organic and fresh products, especially by higher-income consumers is expected to drive the demand for specialty food retails which includes avocado. To this end, it must be noted that according to the Government of Canada, the year 2019 recorded an avocado import of 94,963 metric tons (Mt) which is a 35.62 % increase from the reported 70,020 Mt recoded in 2015. Further demand for ethnic stores due to the increasing diversity within the Canadian population is also expected to facilitate the sales of avocados as they are readily associated with food preparations that are exotic to Canadian cuisine. Convenience stores are reportedly introducing different product ranges, reducing prices, and changing their layouts to attract new consumersto maintain their market share in the retail sector. The convenience segment has been characterized by consolidation, with chain stores expanding at the expense of small, independent operatorsduring the past few years. The aforesaid paves for processed avocado products which in turn is expected to drive the Canada avocado market growth. For example, a line of delicious Superfood Granolas called Golden Turmeric Superfood Granola was launched by Nature's Path, the first certified organic cereal manufacturer in North America, among others during September 2020, contains avocado oil that is rich in oleic acid and is known to reduce cholesterol and improve heart health.
Throughout the COVID 19 pandemic global agricultural trade has demonstrated remarkable resilience and flexibility adopting new measures and adapting to new, changing conditions with readiness. The national pandemic response of Canada has effectively aided the nation’s food and agriculture industries settle into a relatively stable ‘new normal’ operating environment, despite acute disruptions early during this year. Though Canada’s foodservice sector was on track to top USD 73 billion in sales in 2020 before COVID-19, the national restaurant industry association estimates 2020 losses of between $15 and USD 35 billion, as reported by the USDA. Foodservice sales fell sharply in March, as provincial authorities imposed COVID-related measures, including the closure of non-essential businesses, local and international travel restrictions, and measures to limit public interactions. Further retailers were forced to adapt quickly to unprecedented consumer demand (e.g., panic buying and stockpiling) and equally unprecedented operational demand (e.g., e-commerce, crowd control, sanitizing, etc.) at the beginning of the pandemic. During the week ending March 21, 2020, retail grocery sales rose 40 % over the same week a year earlier. As consumers settled for online shopping, eCommerce grocery sales doubled between February and May 2020. This trend is expected to continue which will be buttressed by on-premises shopping with lockdown restrictions that are being gradually lifted making to favorable of the Canada avocado market growth.
Segmentation
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