Canada will increase its demand for packaged products, the United States Department of Commerce (DOC) projected.
Canada is highly dependent on a wide range of consumer-oriented imports of US agricultural products.
Even as the Canadian foodservice sector continues to rebound, the DOC expects total foodservice sales to remain lower until mass Covid-19 vaccination allows indoor dining to return to pre-Covid levels. -19.
Consequently, the best opportunities for US agricultural export growth are expected to be in the retail sector: grocery stores/supermarkets.
Packaged products
In 2020, Canadian food and beverage retail sales increased by a record 10% over the previous year, reaching $ 109 billion, including $ 20 billion alcohol sales, while Covid-19 response measures generated double-digit losses in food service.
After consumers stockpiled staples and bulk early in the pandemic, the number of home-prepared meals remained high throughout the year as foodservice outlets were scaled down to take out or limited operations. of meals, according to the DOC
In addition, the demand for consumer packaged products recognized as organic, natural and with clean ingredients continues to increase.
As the pandemic continues to evolve, DOC anticipates that consumer shopping behaviors will continue to adapt to it.
With financial insecurity related to Covid-19 in the country, typically price-conscious Canadian consumers are expected to remain cautious in the short term, driving sales of private label products.
Essential products, such as rice, pasta, and bread, as well as snack foods, will continue to work well.
USMCA
The United States, Mexico, and Canada are parties to the United States–Mexico–Canada Agreement (USMCA), which entered into force on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA).
USMCA is a 21st century, high-standard trade agreement, supporting mutually beneficial trade resulting in freer markets, fairer trade, and robust economic growth in North America.
The Agreement modernizes and rebalances U.S. trade relations with Mexico and Canada, and it reduces incentives to outsource by providing strong labor and environmental protections, innovative rules of origin, and revised investment provisions. The Agreement also brings labor and environment obligations into the core text of the agreement and makes them fully enforceable.
