Canada probiotics market is expected to grow at a compound annual growth rate of 10.68% over the forecast period to reach a market size of US$1.995 billion in 2027, up from US$0.980 billion in 2020.
Canada has a population of about 37 million people, and 90 percent of Canadians live within 100 miles of the US border. Canada provides strong financial markets and a highly developed logistics network that supports daily two-way trading in food and agricultural products valued at $120 million for businesses that are new to the market and new to exporting.
Canada’s food and alcoholic beverage retail sales in 2018 reached $96 billion, representing an increase of 3 % from 2017. This opens up a ton of possibilities for the eventual growth of food and beverage sales in the United States. Furthermore, Canada's retail market is mature and consolidated, with five main retailers controlling 62 percent of the market, including three traditional grocers and two general merchandisers. The demand for high-end and specialised meals differs significantly from that for low-cost, high-quality goods in the Canadian food market.
Some high-end consumer-packaged food items are three times more expensive in Canada than they are in the United States. This shows that customers are willing to spend more money on expensive goods. In larger grocery stores, natural, speciality, and organic products are now the norm for the "centre aisle" section. Speciality food retail is growing due to the rising demand for organic and fresh items, particularly from higher-income consumers. Currently, independent retailers who focus on particular market sectors outperform traditional food shops.
Further, healthy eating habits have been among the Canadian government’s priority list too, as it has introduced several new labelling measures and is considering front-of-package labelling requirements for foods high in sodium, sugars, and saturated fat, mandating companies to comply with these regulations no later than December 14, 2022 [Source: USDA]. So, as recently as January 2020, Kaneka Americas Holding, Inc. received Health Canada Class III approval for FloradaptTM Cardio under the Natural Health Products Directorate (NHPD), as identified by the Natural Product Number (NPN) 80096187. Since cardiovascular disease is the primary cause of mortality for adult Canadian men and women, Floradapt Cardio is a trademarked probiotic that aims to reduce the risks to cardiovascular health.
One of the obstacles preventing the expansion of the Canadian probiotic supplements industry is the strict government rules and restrictions. Probiotics may be controlled as medications, food, cosmetics, and dietary supplements. Probiotics must either have FDA approval as a food additive or be generally accepted as safe by experts before they may be used in food items. Additionally, foods containing probiotics are not permitted to make health claims about how they can mitigate, treat, or prevent disease, but rather how they will alter how the body functions. Probiotic-rich food products, such as functional foods, aid in maintaining immunological health and gastrointestinal well-being. Any statements that appear on labels or in marketing shouldn't be deceptive.
Concerning livestock, in Canada, total beef consumption is estimated to remain steady despite the price increase. Further, due to the change in dietary behaviour, consumers have increasingly included other sources of protein in their diet. Furthermore, due to the prevalence of African Swine Fever (ASF) in Asia and other parts of the world in 2019, the demand for non-pork protein will rise.
Further tariffs on Canadian beef exports to Japan will continue to decline annually until eventually reaching 9 %. Increased exports and growth in market share for Japan through the first half of 2019 have already been realized by Canada. In addition, estimates indicate that domestic pork consumption will continue to increase through 2020, despite a modest but steady increase in per capita consumption. Additionally, it is predicted that per capita consumption would reach 22.3 kg in 2020, an increase of 1% from 2019 [Source: USDA]. As a result, there is enormous potential for the application of probiotics in the animal feed sector, which is essential to helping to sustain livestock farming, in light of this consumer trend that is storming upward.
Canada Probiotics Market Segmentation