Canada Avocado Market is projected to grow at a CAGR of 5.01% to reach US$140.27 million by 2027, from US$99.642 million in 2020.
Consumers in Canada are increasingly inclined towards healthy, nutritious, and ‘clean’ products, inclusive of but limited to natural, specialty, and organic products. These products have emerged as standard ‘center aisle’ products in more prominent grocery outlets. The increasing demand for organic and fresh products, especially by higher-income consumers, is expected to drive the demand for specialty food retailers, including avocados.
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 recorded 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 consumers to 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 operators during the past few years. The aforesaid paves for processed avocado products, which in turn is expected to drive the Canadian 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, in September 2020, which contains avocado oil that is rich in oleic acid and is known to reduce cholesterol and improve heart health.
The global agricultural trade has demonstrated remarkable resilience and flexibility in 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 to settle into a relatively stable ‘new normal’ operating environment, despite acute disruptions early 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 pandemic's beginning. 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, e-commerce 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 it favorable for the Canada avocado market growth.
Canada Avocado Market Segmentation: