Directions Newsletter
Industry Snapshot: Canada’s food industry in the last year
Toronto – March 10, 2018 – The latest Consumer Price Index (CPI) from Statistics Canada reveals minor price increases in 2017 for all food items as a result of sharp competition between Canada’s food retailers.
Other important facts about Canada's retail food industry:
While the total inflation for all items increased by 1.6% in 2017, the prices for food purchased from stores decreased by 1%.
Predictions for 2018 are calling for a modest food price increase across Canada, as the retailers’ competition remains fierce.
The price of food in restaurants have risen. (+2.6%).
Prices for fresh fruits (-3.1%) and fresh vegetables (-2%) fell in 2017, after increasing in 2016.
Strong competition at store level translated into annual average price decline for staples such as eggs (-3.5%) and dairy products (-1%).
Poultry prices went up by 1.5% while fish prices have increased by 3.5% in 2017.
The demand for meat and poultry, in both Canada and the US, remains strong, despite higher and higher prices.
Across the country, prices fell by half a percent in Quebec and by just over 1% in Ontario and Alberta.
Food retailers registered a minor loss in gross margins during the month of November 2017, compared to 2016.
Retail Sales Revenue | ||||
Change vs Prior Year | Supermarkets | Convenience | Drug | General Merchandise |
November | 0.4% | 2.8% | 3.5% | 11.2% |
Latest 12-mon | 1.4% | 1.2% | 6.5% | 4.8% |
Manufacturer Sales Revenue | ||||
Change vs Prior Year | Total Manufacturing | All Food | Soft Drinks | Packaged Foods |
November | 6.7% | 2.8% | 1.0% | 4.0% |
Latest 12-mon | 6.0% | 5.2% | 0.1% | 6.8% |
Sources: Kevin Grier – Grocery Trade Review – January 2017, www.kevingrier.com; Statistics Canada – The Daily – CPI Annual review, 2017