Industry Snapshot: Canadian retail food industry

Toronto – October 26, 2017 – Statistics Canada's latest release regarding the Consumer Price Index (CPI) shows that increases in food prices are being led by the increasing costs of importing fresh items. In August 2017, prices of food purchased at retail stores have risen for the first time in over a year. Other important facts about Canada's retail food industry:

• The prices of imported fresh vegetables from the United States increased by 10% from May to July.

• During that same time, the price of imported fresh fruits increased as well by 8%.

• In August 2017, the distributors’ cost of both chicken and beef increased by 4%, while the price of pork increased as well by 9%.

• Sales of consumer packaged goods amounted to $32 billion in 2016, an increase of 6% ($30 billion in 2015). The consumer packaged goods sector represents about one third of overall food sales in Canada, this includes packaged baked goods, cereal, pasta, processed vegetable items, and snacks.

• The overall food industry in Canada grew by 6.5% from May to July.

• Consumers paid 2% more at retail food stores from May to July.

Sources: Statistics Canada; Kevin Grier Market Analysis and Consulting Inc. – Grocery Trade Report – September 2017.