Canada Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in canada, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Agricultural Sector
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Overview 

In 2024, Canada was the number two export market for U.S. agricultural exports, totaling US$29.5 billion, and accounting for nearly 17% of total U.S. agricultural exports. Consumer-oriented agricultural exports accounted for the largest share, at US$21.8 billion and almost 74% of total U.S. agricultural exports to Canada. Some of the top consumer-oriented export categories include baked goods, cereals, and pasta; fresh and processed vegetables; fresh and processed fruit; meat and meat products; non-alcoholic beverages; food preparations; chocolate and cocoa products; condiments and sauces; coffee; wine; beer; and pet food. In 2024, the United States imported US$41 billion worth of agricultural products from Canada. 

Canada is the largest destination for U.S. exports of high-value agricultural products, with a 25% market share in 2024 and a value of US$21.8 billion. Consumer-oriented agricultural products are foods typically sold directly in supermarkets and used in restaurants. These high-value exports support over 135,000 jobs in the United States, and many of the suppliers are small and medium-sized businesses. 

Most U.S. agricultural products have entered Canada duty-free since 1989 under the USMCA (and the preceding NAFTA and U.S.-Canada Free Trade Agreement). Major exceptions are the supply managed sectors, including dairy, chicken, turkey, and eggs. 

Leading Sub-sectors 

Food Retail Sector

In 2023, Canada’s food and alcoholic beverage retail sales reached US$118 billion, including alcohol sales of US$20 billion – a notable 5% increase from the previous year compared to the modest 2% we witnessed in 2022 vs. 2021. 

Canada is the largest overseas market for U.S. high-value, consumer-oriented products, with exports reaching US$21.8 billion in 2024 – representing a 7% growth from 2023. This segment of agricultural and food products includes snack-foods, breakfast cereals, sauces, confectionery, pet food, wine, spirits, beer, and soft drinks. The top three consumer-oriented agricultural product categories were bakery goods, cereals, & pasta, fresh vegetables, and fresh fruits. U.S. products dominate in imported goods in the Canadian market, but recently implemented Canadian trade agreements with 3rd country trading blocs – CETA (Canada-European Union Comprehensive Economic and Trade Agreement) and the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) – have contributed to increased agricultural export competition in the Canadian market. 

Canada’s retail market is mature and largely consolidated, with five retailers - Loblaws, Sobeys, Metro, Costco, Walmart- comprising nearly 80% of the total retail grocery market. The remainder of the market is represented by smaller regional retail chains that include over 6,500 independents and 25,000 small/independent convenience stores across the country. 

Ontario, Quebec, and British Columbia represent over 60% of Canada’s retail market and are the provinces where most convenience, drug, grocery, and mass merchandise stores are located. By surface area, Canada is the second-largest country, but over 80% of Canadians live in the country’s 15 largest cities, making urban centers the nuclei of retail activity. 

As larger grocery banners focus their efforts on population-dense areas, smaller communities are serviced by smaller format retailers as well as independent and specialty retailers. While sophisticated, transportation logistics can be relatively expensive moving East-West. As a result, product distribution channels routinely flow North-South, reinforcing the importance of imports from U.S. suppliers. 

The Canadian food market displays a contrast of demand, one for low-priced quality foods and the other for premium and specialty food items. Some premium consumer-packaged food products are sold in Canada at three times the comparable U.S. retail price. Customarily, U.S. companies selling natural, organic, or specialty foods will create demand and sales among the independents before tackling larger accounts. Proven sales in Canada are important to help persuade category buyers to list new products.  

List of Top 10 Growth Packaged Food and Beverage Products in Canada:

  • Savory snacks 
  • Non-alcoholic beverages 
  • Ready-to-drink beverages
  • Baked goods 
  • Prepared meals 
  • Protein substitutes 
  • Nuts, seeds, and mixes 
  • Prepared salads 
  • Dried fruits 
  • Frozen fruits & vegetables

Food Service Sector

In 2023, food service sales amounted to US$85 billion, both commercial and non-commercial food service sales, reflecting a 10% increase from the previous year. The food service sector is comprised of two major segments (i.e., the commercial and non-commercial subsectors). The commercial food service subsector includes quick-service restaurants, full-service restaurants, caterers, and drinking establishments, representing 80% of total food service sales or approximately US$70 billion. The non-commercial subsector represents 20% of the total market which includes hotel, hospital, schools, and other related other related establishments, represents the balance of total food service sales in Canada at US$16 million.

Within the commercial sector, quick service (QSR) establishments maintain the largest share of the market (45%), followed closely by full-service restaurants (FSR) (44%). Nearly 80% of QSR sales are driven by national chains, such as Tim Hortons, McDonald’s, Starbucks, and other familiar chain entities. QSR units have steadily grown in the last decade due to quicker service and competitive menu prices relative to FSR options. Mobile apps and third-party platforms, such as DoorDash, UberEats, and SkiptheDishes continue to gain popularity and are readily used by many Canadians across the country, particularly by Millennials and Gen Zs.  

The largest national food service distributors in Canada are Sysco and Gordon Food Service with 28 and 9 distribution facilities respectively. Additionally, there are several well-established regional and specialty commodity/product distributors that play an important role in meeting foodservice sector needs and presenting opportunities for specialty imported products.

The major trend in the foodservice sector is healthy choices, as more Canadians adopt a healthier lifestyle and demand health-conscious offerings, such as rice bowls and meatless menus. Another top trend is the continuing growth of ethnic foods, largely influenced by Canada’s growing diversity.  Also, immune boosting products, such as smoothies with vegetables and dishes that use upcycled ingredients. Prospects for both commercial and non-commercial foods in 2025 look promising, as each has reached sales levels similar to pre-COVID-19 levels. 

Food Processing Sector

The Canadian food processing sector is sophisticated and among the most competitive in the world with approximately 70% of all processed food and beverage products available in Canada being sourced domestically. Ontario, Quebec, Alberta, and British Columbia account for more than 85% of food and beverage manufacturing sales in Canada. The sector is the largest manufacturing sector in Canada in terms of both GDP and employment, representing over 16% of Canada’s manufacturing GDP and 17% of Canada’s manufacturing jobs. In 2024, Food and beverage processing sales totaled US$116 billion. 

Canada’s food and beverage manufacturing establishments are overwhelmingly small and medium-sized enterprises (SMEs) having approximately 8,500 food and beverage processing establishments employing over 300,000 Canadians. Of these establishments, about 92% have less than 100 employees, 8% have between 100 and 500 employees, while less than 1% have more than 500 employees. Despite the large number of SMEs, large domestic and foreign-owned firms account for most sales. Ontario and Quebec account for most of the food processing sales, followed by British Columbia and Alberta. In the past decade, the sector in Canada gained approximately 20 new federal food processing facilities compared to 4,000 in the United States over the same period. The current Canadian administration led by Prime Minister Mark Carney released a campaign plan to expand food exports and build more domestic processing capacity, including food processing capacity in rural and remote areas, with a new C$200 (US145) million Domestic Food Processing Fund.  

Canada’s food and beverage processing industry is deeply integrated with the United States and relies heavily on two-way trade with the United States as Canada’s processors import food products, ingredients, and essential inputs for further processing, as well as re-exports final products back into the United States. As a result of recent trade developments, the Government of Canada is working with the sector to promote voluntary “Product of Canada” or “Made in Canada” claims on food labels to make it easy for Canadian consumers to spot products with Canadian input.

\The food processing sector first focuses on sourcing ingredients and inputs domestically, but given increasing food inflation, there is a growing emphasis on sourcing ingredients from major international suppliers to achieve cost advantages. The United States currently has strong market share in almost all product categories but given changing market dynamics, the Canadian industry is looking for alternative sourcing options.

Opportunities

To enable export success, the Foreign Agricultural Service in Canada (FAS/Canada) recommends that exporters closely study their targeted sector. FAS/Canada offers several free Global Information Agricultural Network (GAIN) Reports, that provide further details on various sectors in Canada and can be accessed at the bottom of the FAS/Canada webpage under Resources. Key reports include the Exporter Guide and Food and Agricultural Import Regulations and Standards (FAIRS 2025) report, which outline the necessary regulatory and compliance requirements for food products. Additionally, the Canadian Food Inspection Agency (CFIA) provides a step-by-step guide to these regulations, with particular emphasis on labelling requirements in Canada

Once familiar with Canadian regulatory and compliance requirements, U.S. companies are encouraged to explore the various export assistance programs offered by the USDA and administered through the State Regional Trade Groups (SRTGs) and USDA Commodity Cooperators. These programs provide valuable one-on-one counseling and educational seminars designed to help U.S. businesses prepare for successful market entry into Canada.

Small-and medium-sized firms (SMEs) may qualify for financial support to promote their brands in Canada under the USDA Market Access Program. This program is administered by the SRTGs via programs such as the: Branded Program (Food Export)/ Cost Share (SUSTA) Program / Fund Match Program (WUSATA). To learn more about these resources contact your international trade specialist with your State Department of Agriculture. 

Some of the shows and export program opportunities offered by the SRTGs are: 

  • Participation in Canadian and selected domestic shows whereby 50% of the cost of the booth, booth displays, and Canadian travel (only) can be covered by registering in the above mentioned SRTG programs. Restaurants Canada, Mississauga, Ontario (March 8 - 10, 2026), SIAL Canada, Montreal, Quebec (April 29- May 1, 2026), along with the Restaurants Show in Chicago (May 16 – 19, 2026).
  • In-bound trade missions into the United States comprised of Canadian and other foreign buyers. This is an opportunity to meet one-on-one with potential interested buyers.  
  • Out-bound U.S. company missions (focused only on U.S. beverage and food products) to Canada with Canadian retail tours for participants to learn about the competitive landscape.  The following day will focus on one-on-one meetings with Canadian buyers, arranged by SRTG’s Canadian Trade Representatives with technical knowledge on the food and beverage market in Canada. 
  • Financial support in creating a Canadian web page. 
  • Financial support in executing demonstrations in Canada and developing point-of-sale (POS) materials.

Resources

Main Trade Shows in Canada  

Agriculture and Agri-Food Canada, USDA’s Canadian counterpart, maintains a list of trade shows on this webpage. USDA provides support for U.S. companies interested in participating in the following trade shows:   

  • Canadian Health Food Association Trade Show  
  • Canadian Produce Marketing Association and Convention Show  
  • SIAL Canada, USA Pavilion (managed by USDA Show Contractor)  
  • Canadian Restaurant and Beverage Show  
  • Vancouver International Wine Festival  
  • Other Agricultural – Food Processing Trade Shows in Canada  

Useful Canadian Websites

The following is a listing of important Canadian institutions and their website: 

  • Canada Border Services Agency   
  • Canadian Food Inspection Agency   
  • Global Affairs Canada   
  • Bank of Canada. Daily Currency Convertor   
  • Innovation, Science and Economic Development Canada   
  • Health Canada  

 

USDA’s Foreign Agricultural Service  
For further information and for assistance in marketing U.S. agricultural and food products in Canada, U.S. exporters should contact:  
Office of Agricultural Affairs  
U.S. Embassy, Canada  
P.O. Box 5000, Ogdensburg, NY 13669-0430  
Telephone: (613) 688-5267; E-mail: agottawa@usda.gov

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