Market Information Papers
With a population of 37.6 million, Canada is the 10th largest import market in the world. Canada depends on foreign trade which is reflected in the many bilateral and multilateral trade agreements Canada has negotiated and continues to negotiate with countries around the world.
The top consumer markets are in three provinces: Ontario (Toronto), Quebec (Montreal) and British Columbia (Vancouver). Majority of importers are in the Toronto and Montreal areas. More than 85% of all imports are cleared in the provinces of Ontario and Quebec and then are distributed throughout Canada.
Growth in imports has been increasing steadily before the COVID -19 pandemic hit the country, like most other countries in the world. Before the pandemic, Canada’s GDP average yearly rate was approximately 2% and other economic indicators suggested a stable economy. It remains unclear what medium and long-term impact the pandemic will have on imports as well as the general economic conditions in the country.
The United States remains Canada’s largest trading partner and accounted for more than half of all imports into Canada in 2019. China is also a major exporter to Canada as well as many other Asian countries. Mexico is the largest exporter to Canada within Latin America (due largely to the Canada US Mexico Agreement (CUSMA).
There are three key sectors in the Canadian import market of interest for developing country exporters: agri-foods, textiles and clothing and home décor. Agri-food imports totalled $11.2 billion in 2019, Textiles and clothing imports reached $14 billion in 2019, Home décor imports reached $3 billion in 2019, with the U.S. and the EU being important suppliers.
Canada has its own Customs Tariff Structure based on the World Customs Organization Harmonized Tariff System (HS). The Canadian Border Services Agency (CBSA) is the Canadian government agency responsible for customs services and compliance with Canada’s borders legislation. The CBSA also provides the list of countries with the applicable tariff treatments.
Canadian and international certifications are an important consideration for SMEs contemplating Canada as an export market. In addition to complying with Canadian laws and regulations, exporters may wish to pursue additional third-party certifications such as Global G.A.P., Rainforest Alliance and ISO as some importers may require such certifications.
A few options are available to exporters wanting to sell to Canada. SME exporters must decide whether to export directly to an importer, distributor, or retailer in Canada, or to export indirectly through intermediaries either in their country or in Canada such as distributors, brokers and agents or trading houses. There are a number of ways to identify buyers in Canada. Trade shows have traditionally been a great source to find buyers although with the pandemic, the future of this type of activity remains uncertain. Trade magazines and directories are also a good tool to identify buyers. Exporters can use a number of tools (such as the Canadian Importer Database) to identify buyers. They can also contact their Embassy (or High Commission) and Consulate in Canada to get assistance.
In summary, the first step for exporters to take when contemplating to sell to Canada is to develop a market-entry strategy with the following components: analyze the market demand for your products, understand the regulatory environment in Canada and identify potential buyers. To become export ready for Canada, it is important that exporters do their homework diligently and thoroughly.
Com uma população de 37,6 milhões de habitantes, o Canadá é o décimo maior mercado de importação do mundo. O Canadá depende do comércio exterior, o que se reflete em muitos acordos comerciais bilaterais e multilaterais que o país negociou e continua a negociar com outros ao redor do mundo. Os principais mercados consumidores estão em três províncias: Ontário (Toronto), Quebec (Montreal) e Colúmbia Britânica (Vancouver). A maioria dos importadores está nas áreas de Toronto e Montreal. A liberação alfandegária de mais de 85% de todas as importações ocorre nas províncias de Ontário e Quebec, e, em seguida, os produtos importados são distribuídos por todo o Canadá.
As importações vinham aumentando continuamente antes de a pandemia da COVID-19 atingir o país, como na maioria dos outros países do mundo. Antes da pandemia, o PIB do Canadá crescia a uma taxa média de aproximadamente 2%, e outros indicadores econômicos sugeriam que havia estabilidade econômica. Ainda não está claro que impacto a pandemia terá, no curto e no médio prazo, sobre as importações e as condições econômicas gerais do país.
Os Estados Unidos continuam sendo o maior parceiro comercial do Canadá e foram responsáveis por mais da metade de todas as importações do Canadá em 2019. A China e diversos outros países asiáticos estão entre os principais exportadores para o Canadá. O México é o maior exportador para o Canadá na América Latina (o que se deve, em grande parte, ao Acordo CUSMA, entre o Canadá, os EUA e o México).
Existem três setores-chave no mercado importador canadense de interesse para os exportadores de países em desenvolvimento: alimentos; têxteis e vestuário; e decoração para casa. As importações de produtos agroalimentares totalizaram $11,2 bilhões em 2019, as importações de têxteis e roupas atingiram $14 bilhões em 2019, as importações de produtos de decoração para o lar atingiram $3 bilhões em 2019, sendo os EUA e a UE importantes fornecedores.
O Canadá tem sua própria Estrutura de Tarifas Aduaneiras, baseada no Sistema Harmonizado de Descrição e Codificação de Mercadorias, geralmente denominado “Sistema Harmonizado” ou simplesmente “SH” (ou HS em inglês: Harmonized System). A Agência Canadense de Serviços de Fronteiras (CBSA, na sigla em inglês) é a agência governamental canadense responsável pelos serviços alfandegários e pelo cumprimento da legislação de fronteiras do Canadá. A CBSA também fornece a lista de países com os tratamentos tarifários aplicáveis.
As certificações canadenses e internacionais são uma questão importante para as PMEs que considerem o Canadá como um mercado de destino para suas exportações. Além de cumprir as leis e regulamentações canadenses, os exportadores talvez devam, também, obter certificações adicionais de terceiros, como o GAP Global, o Rainforest Alliance e as certificações ISO, visto que alguns importadores podem exigir essas certificações.
Algumas opções estão disponíveis para exportadores que desejam vender para o Canadá. As PMEs exportadoras devem decidir se exportam diretamente para um importador-distribuidor ou varejista no Canadá; ou se exportam indiretamente por meio de intermediários em seu país ou no Canadá, como distribuidores, agentes e despachantes ou empresas de importação/exportação. Existem diversas maneiras de identificar compradores no Canadá. Tradicionalmente, as feiras são uma ótima opção para encontrar compradores, mas, com a pandemia, o futuro desse tipo de atividade permanece incerto. Revistas e diretórios comerciais também são uma boa ferramenta para identificar os compradores. Os exportadores podem usar diversas ferramentas (como o banco de dados de importadores canadenses) para identificar compradores. Eles também podem entrar em contato com sua embaixada (ou alto comissariado) e consulado no Canadá para obter ajuda.
Em resumo, o primeiro passo que os exportadores devem dar quando planejarem vender para o Canadá é desenvolver estratégia de entrada no mercado com os seguintes componentes: analisar a demanda do mercado pelos seus produtos; compreender o ambiente regulatório no Canadá; e identificar potenciais compradores. Para estar pronto a exportar para o Canadá, é importante que os exportadores façam seu dever de casa de forma cuidadosa e completa.
With 3 billion litres in volume sales and $CAD 21 billion in value sales, the Canadian alcoholic beverages market is an enticing proposition for Small and Medium Exporters (SME’s) from developing countries. The market profile is changing, with wine and spirits categories offering attractive opportunities. However, developing a solid business case, encompassing all the components of the “Route-to-Market”, will be critical to implementing a successful market-entry into Canada. This will require understanding the role of the Liquor Boards, Agents and Suppliers, integrating Corporate Social Responsibility into export plans, and full compliance with import regulations.
The apparel industry in Canada was estimated to have sales of over $34.8 billion in 2017, and the textile industry import value was estimated to be valued at over $2.6 billion There has been steady increases in the sale of both menswear and womenswear, but the increase in men's clothing has surprisingly outpaced the growth in womenswear. Large retailers of apparel and footwear, such as Marshalls, Winners, Mark's, Reitman and Le Chateau, accounted for more than half of the total retail sales but consumers have dramatically changed their buying channel from instore to online. The fastest-growing distribution channel for apparel retailing is e-commerce which has grown from 6% in 2012 to over 11% in 2017.
According to Statistics Canada, over $10 billion in non-alcoholic beverages was sold in Canada in 2015. While the consumption of beverages in Canada is high, the sale of beverages in Canada has seen an increase of less than 1% over the past five years. In fact, the actual consumption of beverages in Canada has decreased by 4% over the past five years from 98 litres in 2011 to 82 litres per person in 2015. The rate of consumption of soda beverages has particularly decreased significantly over the past 10 years in Canada due to the rising age of the population and the demand for healthier, less sugary alternatives. Consumers have begun to turn to healthier substitutes such as water and ready-to-drink tea. Products that contain certain health benefits should definitely illustrate these benefits in their marketing. Millennials in Canada tend to be more adventurous in terms of trying unique flavours and new ingredients. Imports account for approximately 20% value of the Canadian non-alcoholic beverage market. Canadian imports of beverages have increased in value by 10% from 2011 to 2015. The main source of imported non-alcoholic beverages to Canada is the United States with approximately 72% of total imports. The top five importers of beverages from TFO Canada supported developing countries are Chile (0.7%), Philippines (0.7%), Mexico (0.6%), Costa Rica (0.2%) and Ecuador (0.2%). The largest category of imported non-alcoholic beverages is the HS Code 220290 which consists of non-alcoholic beverages excluding fruit and vegetable juices with more than 32% of the total imported non-alcoholic beverages to Canada. HS Code 220290 includes soy beverages, non-alcoholic wine and beer, organic beverages and chocolate drinks. Imports under this category also have the highest import growth rate of all non-alcoholic beverage imports with a growth rate of 20% over the past five years.
While residential construction is facing a depressed market into 2015, opportunities exist for suppliers of building materials for commercial construction and home renovations for seniors who want to remain longer in their homes. Opportunities also exist for materials that are environmentally friendly and innovative for all types of construction. After a sharp decline in 2011 to $930 million, the value of Canadian lumber imports reached just over $1 billion in 2013, approaching the five year high last reached in 2010. Imports of value-added products such as kitchen cabinets, wooden windows, doors, pre-fabricated wooden buildings, fencing, etc. reached a five year high in 2013 at $1.3 billion. Sourced mainly from the United States ($701 million), China ($318 million) and Austria ($52 million), several TFO Canada client countries were successful in claiming a position among the top ten suppliers in this category. Canadian imports of ‘other’ building products such as clay and stone tiles for flooring and walls, and cement blocks rose consistently over the past five years to reach $3.3 billion in 2013.
Canada is an important services market. According to UNCTADSTAT, Canada is the 14th largest importer of services in the world. Additionally, Canada is a net importer of services. In 2019, services imports to Canada totalled $161 billion and services exports $139 billion.
Canada’s fast-growing information communications technology (ICT) sector contributed $94.1 billion dollars and 4.8% to the national GDP in 2019. 2020 forecasts predict that the sector will continue to grow to over $99 billion by the end of 2022. In 2019, ICT imports totaled over $11 billion dollars, growing steadily year after year for over a decade.
Despite the tremendous negative economic impact COVID-19 has had on the Canadian economy, the IT sector has remained, for the most part, resilient for a variety of reasons. This includes the sector’s ability to shift their processes quickly and easily to remote locations when compared to other sectors, the increased demand for IT services catalyzed by the pandemic and the resulting social distancing measures as well as the new emphasis placed by businesses on investments in technology in order to drive digital transformation in a post-COVID economy.
With very few exceptions, international travel by Canadians had grown steadily year after year for over fifty years. In 2019, Canadian residents made 12.3 million trips to countries other than the United States, spending an estimated $21.7 billion on travel. Canada, in fact, ranks sixth among all countries in international tourism expenditures.
The COVID-19 pandemic has had a tremendous negative impact on the global tourism sector. International tourism expenditures in Canada dropped from approximately $21 billion in 2019, to an estimated $4.7 billion in 2020.
Creative and Cultural Industries
Canadians are strong consumers of the creative and cultural industries. Each year, over 99% of Canadians participate in ‘culture’ in some way. Canada is the most ethnically diverse country among modern Western countries. The ethnic makeup of Canada impacts not only the purchasing habits of recent immigrants and their children, but of mainstream Canadians as well, providing ample opportunities for services exporters in this sector.
In 2018, the latest year for which data is available, imports of cultural products (goods and services) totaled $2.9 billion, an increase of almost 14% from 2014 and accounting for 2.9% of Canada’s total imports.
The COVID-19 pandemic and the resulting public health measures have had a tremendous impact on the creative and cultural industries. For at least the short-term, services exports to Canada in this sector will be impacted by factors such as social-distancing measures and the length of time these restrictions stay in place as well as the ability of exporters to connect with their audiences online in the interim.
When it comes to study-abroad programs Canada falls behind many other developed countries, with only 11% of Canadian university undergraduates participating in an international experience during their degree. However, the Canadian government has recently acknowledged the importance of study and work abroad opportunities and, to support and encourage study-abroad initiatives, has launched the International Education Strategy (IES) 2019-2024.
One of the 3 key objectives of the IES strategy is to, “encourage Canadian students to gain new skills through study and work abroad opportunities in key global markets, especially Asia”. This provides a timely opportunity for learning institutions, particularly those in Asia and Latin America, to develop programs and marketing initiatives tailored to Canadian students wishing to take advantage of the Outbound Student Mobility Pilot.
This Guide explains how to export goods to Canada on a duty-free and quota-free basis under the Market Access Initiative. It offers useful information on customs requirements, with a focus on the Rules of Origin. There are 48 eligible Least Developed Countries (LDCs) that can benefit from these favourable trade arrangements with Canada.
The total Canadian market for carpets and rugs is estimated at over $4.5 billion in 2014. As residential construction and housing markets recover from the recession, floor covering stores have returned to positive growth projected at 2.4% over the next five years (2014-2019). Carpets and rugs represent half of business sales for the over 1,777 floor covering stores located across Canada. In addition to specialty stores, mass merchandisers and home improvement stores have aggressively entered this market, offering unprecedented product selection to Canadian consumers. While price competition has increased for computer-made carpets and rugs, opportunities also exist for high-end handmade carpets, with style preferences ranging from traditional to modern depending on the consumer. Canadian imports of carpets and rugs reached a five year high in 2013 at a total of $873 million. The United States represents a large portion of these imports, however many developing countries have reached top ten supplier status, including Egypt, Turkey and Nepal. Exporters must meet Canada’s strict regulations for flammability and may be eligible for certification by the Carpet and Rug Institute’s Green Label Plus programme.
Canadians are big coffee drinkers, making it one of the largest coffee consuming countries in the world. Imports of green beans into Canada reached 209 million Kgs in 2019 (CAD$805 million), more than 60% of which were organically certified beans. On a per capita basis, Canadians consume more coffee than the United States or Britain.
Latin America (Colombia and Brazil leading the way) is the most important exporting region of green coffee beans to Canada (180 million Kgs or 86% of the total volume in 2019), followed by Asia (Indonesia and Vietnam lead) and Africa (Ethiopia, Kenya and Uganda lead). Over 40 countries exported green coffee beans to Canada in the same year, making Canada an extremely competitive marketplace. Most of the roasting, blending and packaging occurs in Canada once the green beans have been imported and cleared. There are several large roasting companies and many smaller roasters, totalling close to 300 roasting facilities.
Like in so many sectors of the economy, the COVID-19 pandemic has had an adverse effect on coffee imports, processing and consumption in Canada. It is obviously difficult to predict when these sub-sectors will return to any form of normalcy and growth. Assuming it eventually will, exporters should expect to find opportunities in smaller batches along with specialty coffees provided they offer distinctive or unique green beans that stand out from competing suppliers.
Consumption in Canada is highly influenced by the palate and it is all about the bean itself: how it’s been farmed, the social ethics behind the brand, its sustainable and environmentally friendly practices, and what certifications the exporter has in place; in addition to taste, aroma and other coffee bean attributes.
The exporter should focus on developing a product that is distinctive and unique. The Coffee Market Report produced by TFO Canada, as well as the resources made available on the internet are great tools the exporter can use to prepare and develop an export offer that will incorporate these factors. The Coffee Market Report identifies many of the tools available to exporters form TFO client countries.
Corporate Social Responsibility (CSR) is defined by the Government of Canada as the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner. In Canada, and around the world, companies, governments, and consumers are increasingly interested in buying products and services that are produced in socially, culturally, and environmentally responsible ways.
CSR is a business model that supports companies in becoming more socially and environmentally responsible to its employees, stakeholders, and the public. CSR moves the business focus from solely profits to incorporate more socially beneficial outputs.
Some of these socially and environmentally responsible outputs include:
- Decreasing greenhouse gas or the carbon footprint of a company
- Providing a safe work environment for all employees
- No discrimination policies
- Living wages
- Equal rights for marginalized groups and much more
These issues are influencing how governments, companies and consumers are making purchases, based on the performance and the history of businesses. Both retailers and consumer goods companies are evaluating suppliers and partners to ensure that they are operating in environmentally and socially responsible ways.
Small and medium sized companies (SMEs) exporting to Canada should be aware of how purchasers are defining and evaluating a company’s social and environmental commitments and performance. For SMEs by incorporating CSR into their business models and fulfilling their CSR targets, companies can demonstrate a commitment to social, cultural and environmental changes that can lead meeting more buyer requirements and reaching a larger consumer base.
The Cosmetics industry in Canada has an estimated value of about $9.9 billion in 2016. The industry has grown at an annualized rate of 5.5% over the five years to 2017. The industry has been expanding rapidly as consumers opt for beauty stores that allow consumers to interact with the products. While Canada’s economic growth has increased the industry’s revenue, demand for cosmetic products is still dictated by shifting consumer habits. Emphasis on development at the manufacturing level has increased the number of innovative beauty products, including high-end anti-ageing skincare products and cosmeceutical creams with pharmaceutical properties. Increase in consumer demand is expected to boost industry revenue by 3.5% in 2018. Positive consumer trends are expected to continue for the next five years to 2022 as economic prospects continue to improve.
In 2017, imports of dried vegetables, roots and tubers reached a five year high of CAD$4 billion this was as a result of imports of dried fruits also reaching a five year high of CAD$ 2.1 billion, and edible nuts reaching CAD$854 million. In the same year Canada imported $269 million of dried legumes and $371.1 million of rice. Imports of spices, herbs, and spice extractives rose by 3.2% between 2013 and 2017 to reach a five year high in 2017 of $276.2 million.
Internationally, companies, governments and consumers are increasingly interested in buying products and services from companies that are responsibly managing, and reducing, their negative environmental impacts. In Canada, the government regulations ensure that imported products comply with regulatory requirements, some of which directly related to environmental concerns (e.g., maximum residue limit/ MRL of pesticides level, ban on toxic substances). Small and medium sized (SMEs) companies exporting to Canada need to be aware of how buyers and regulators are defining and evaluating environmental performance of suppliers so that they can meet expectations in order to access the Canadian Market. Developing an environmental management system (EMS) could be crucial in ensuring your services or products can reach international markets. Environmental systems involve reviewing organizational operations and products and identifying and mitigating any potential adverse impacts on the environment.
An EMS is typically accompanied with a pollution prevention plan (P2 Plan), especially for manufacturing businesses. A P2 Plan can be prepared using an EMS framework. Focusing on pollution prevention can improve overall environmental performance and support organizations attain their environmental objectives and targets set through their EMS.
This document focuses on the environmental management and it has been prepared for small and medium sized companies who are exporting to Canada to help them better understand:
- what environmental management system is,
- how to implement an environmental management system in an SME to ensure a systematic approach to improving performance,
- what tools and resources are available to help exporters to Canada to improve, document and communicate their environmental performance.
This document contains the following information:
- definition of environmental management system
- guidance on how your business can implement an environmental management system
- business case for EMS and the advantage for SMEs to have an environmental management system,
- Canada’s market requirements, and
- some case studies that illustrate possible economic and environmental benefits from practicing environmental management system.
Canada has a vast and diverse natural geography and is surrounded by three oceans – the Atlantic Ocean on the east, the Pacific Ocean on the west and the Arctic Ocean to the north. These oceans have provided Canada with diverse species of aquatic animals and plants e.g. finfish, shellfish, seaweeds etc., they also provide the environment for sustainable marine fish and seafood farming. These oceans have also provided Canada with comparative advantage in the fishery and seafood industries, that have also been a mainstay for Canada’s Indigenous peoples. This advantage along with government and private sector investments has made Canada a strong player in the global fishery and seafood industries.
The total market for greenhouse flowers and plants in Canada grew by 2.6% to $1.4 billion in 2013, with indoor and outdoor potted plants accounting for over half of total sales. It is now estimated that more than 9,000 retail outlets sell floriculture products across Canada, as local florists face mounting competition from supermarkets, big box stores and mass merchandisers as well as online retailers. Canadian domestic growers face increasing price competition from foreign imports, particularly from Colombia, which has benefited from the 2011 signing of the Canadian-Colombian Free Trade Agreement. Floriculture imports reached a five year high in 2013, at $370 million, led by mushroom spawn and other live plants including roots and cuttings ($136.5 million), cut roses and buds for bouquets or other ornamental purposes ($64.5 million), and cut flowers and buds for bouquets or other decorating purposes ($41.7 million). Imports rose from $344 million in 2012, and are on track for another annual rise in 2014 as buyers in Canada sourced 7% more from overseas suppliers in the first nine months of 2014 than in the same period the year before.
The future looks promising for the footwear market in Canada. Despite a recent downturn in the economy and the falling Canadian dollar, footwear was one of the top performing categories of apparel during the 2014-2015 season. The total market for footwear reached a five year high of $6.6 billion in retail sales in 2014. An estimated 90% of demand is met through imports, mostly from China. Many of TFO Canada’s client countries are also major sources, including Vietnam, Indonesia, Cambodia, India, Mexico, Thailand, Brazil, Bangladesh and Dominican Republic. Sales of footwear closely follow the fashion calendar and weather seasons. Warm winter boots are a necessity during Canada’s famously cold winters, while summer brings on strong sales of athletic shoes and sandals. One of the biggest trends is a push towards comfortable and casual styles that offer orthopedic benefits without sacrificing style. Women are the largest consumer group, with over half of all footwear purchases made by women aged 35 and above. Following the wider growth trends in men’s fashion, the men’s segment is attracting increasing attention and expected be the center of growth in footwear in the coming years. While there are few specific regulatory requirements, many footwear items are subject to high tariff rates. This creates opportunities and cost advantages for exporters from countries with bilateral free trade agreements or least developed countries that are eligible for duty-free access to Canada.
In 2016, the Canadian fresh fruit and vegetable market reached an all-time high of $11.9 billion, but due to the seasonal limitation, 85% of all fresh fruits and 76% of all fresh vegetables were imported into the country. Imports of fresh fruit and vegetables rose for the sixth consecutive year, reaching $5.98 billion and $3.72 billion respectively. Even though Canadians are eating less than the recommended fresh fruit and vegetable servings suggested by the Canada Food Guide, the increase in fresh fruits and vegetables is largely due to increase in population and downstream demand from supermarkets and grocery stores, restaurants, hotels and motels and specialty food stores which have all increased, driving industry revenue growth.
Following post-2008 recovery in housing construction and disposable income, the furniture market in Canada is estimated at $10.1 billion in 2014 with a projected annual growth of 2.1% over the next five years (2014-2018). Imports supply over half of the domestic market, amounting to $5.7 billion in 2013. An influx of foreign imports (especially from China) has intensified price competition amongst over 3,500 furniture stores located across the country. The market is consumer-oriented, with household sales for bedroom, living room and dining room furniture accounting for nearly 70% of 2014 sales, in addition to office furniture (27%) and outdoor furniture (4%). Canadians value durability and long-lasting pieces, with smaller niche markets for high-end furniture, particularly in the design centres of Toronto and Montreal. Industry innovation is being driven by Canada’s condo boom, with new lines of compact and multipurpose furniture, as well as millennial consumer demand for eco-friendly materials. Exporters must comply with Canada’s strict regulations on flammability and may be required to produce a phytosanitary certificate to demonstrate proper fumigation for certain wood products.
This Practical Guide provides for a newly-arrived Trade Representative to the province of British Columbia a practical overview of the province as a market for his/her country’s exporters. It also gives some background on the economy of Ontario, general market characteristics and demographics of that province, as well as variety of tools that can be used to better understand that market.
This Practical Guide provides a newly-arrived Trade Representative to the province of Québec a practical overview of the province as a market for his/her country’s exporters. It also gives some background on the economy as well as general market characteristics and a variety of tools that can be used to better understand the market.
This Practical Guide provides for a newly-arrived Trade Representative to the province of Ontario a practical overview of the province as a market for his/her country’s exporters. It also gives some background on the economy of Ontario, general market characteristics and demographics of that province, as well as variety of tools that can be used to better understand that market.
From finance to food, Halal in Canada has grown significantly within all industries. For the Canadian Halal food industry, specifically, there has been exponential growth over the last fifteen years in response to Canada’s growing Muslim population. Just as Canadians are from diverse ethnicities, Canadian Muslims are also made up of dozens of different cultures and races.
Canadian imports of hardware dropped from $1.6 billion in 2008 to $1.4 billion in 2009, while imports of hand tools dropped even more dramatically, from $2.6 billion to $2 billion over the same period. However, there are signs that both markets are improving, with imports of hardware rising by 6.3% and those of hand tools by 2.4% in the first five months of 2010 compared to the same period a year ago. Since consumers are more conscious about security and energy conservation, sales of related devices for the home such as lights, locks, timers, alarms and lighting remain high. Energy audits, soon to be a requirement for home sales, will boost demand for these products.
Leather has re-emerged as a top fashion trend in recent years both on Canadian runways and retail shelves. Renowned for its softness, durability and luxury image, leather-made apparel and accessories have moved beyond the classic items of jackets, belts and gloves to include everything from pants, to dress shirts, to mixed fabric designs with leather accents. Canada’s domestic leather manufacturers reported their highest sales in five years in 2013 reaching a total of $430.7 million. In addition, Canada imported $98.3 million in leather hides this same year. Canadian imports of finished leather goods and apparel increased significantly from 2009 to 2013 to reach $303 million and $267 million respectively. Top products included leather handbags ($163 million), clothing ($90 million), gloves ($111 million), and sporting goods ($71 million). Italy remains a top leather supplier for luxury retailers, while China has emerged as a low-cost alternative. Strong opportunities exist for exporters from other countries, with recent gains by Vietnam, Indonesia and Colombia seen in this market.
Home décor is an estimated $10 billion industry in Canada. Demand is expected to grow in 2015 as rising consumer confidence and new housing starts encourage consumers to invest more dollars into their homes. In addition to 3,800 home décor stores located across the country, products are also sold by specialty boutiques, mass merchandisers, and online retailers. Canadian imports of home décor reached $2.9 billion in 2015 and are dominated by Asian suppliers, especially China (60% of imports), as well as the United States (20%). Working age Canadians (30 to 55 years old) make up the largest purchasing group this sector with higher rates of home ownership, established families, and stable incomes. Young consumers (under 30 years old) are driving demand for budget-friendly and trendy home décor that are marketed through online platforms. Exporters must adhere to Canada’s regulations for labeling, health and safety. Glazed ceramics and glassware cannot contain more than trace amounts of lead and cadmium, while home textiles must meet strict labeling requirements based on their fibre content. Given the large size of Canada, the majority of home décor imports are processed through an agent or distributor.
The total market for jewellery and fashion accessories in Canada reached $4.8 billion in 2014, with an average growth of 4% annually over the past five years. Industry consolidation and volatile world prices for gold and silver have squeezed the profit margins of fine jewellers. Costume or imitation jewellery continues to gain market share as consumers follow fast fashion trends and seek out lower-price alternatives during hard economic times. Many Canadians, especially millennials, will splurge on occasional luxury items such as precious jewellery or designer watches and handbags, while making more frequent purchases of low to mid-price accessories to keep up with changing fashion trends. Most of Canada’s demand for jewellery and fashion accessories is met by imports, which reached a five year high of $2.4 billion in 2014. Fine jewellery accounts for half of imports ($1.2 billion), followed by fashion accessories ($1 billion) and costume jewellery ($264 million). The United States and Europe remain major sources, while lower-cost items are dominated by low-cost countries especially China and India. Exporters must be aware of Canada’s strict regulations for lead and cadmium content in children’s jewellery as well as detailed rules for marketing and labeling of precious metals and textile fibres.
This report covers baked goods; confectionery; specialty products such as frozen and canned foods; other manufactured foods such as snack foods; and poultry and meat products. In 2011, food sales by large retailers in Canada amounted to about $41 billion. In that year, Canada imported nearly $10 billion worth of manufactured foods, led by specialty foods, meat products, and confectionery and sugar products. In 2011, imports of sugar and confectionery products rose to their highest level in five years to $2.4 billion. Also reaching five year highs were imports of snack foods ($458 million), and baked goods ($1.26 billion). Specialty foods imports amounted to nearly $3 billion while imports of meat products were $2.8 billion, just over $400 million higher than the previous year.
The growing and diverse Canadian population is becoming increasingly health conscious leading many to integrate preventative health measures in their daily lives. This proactive behaviour and now common trend of a health lifestyle has triggered a surge of consumer spending on Over the Counter (OTC) health products and Natural Health Products (NHPs) in Canada. Natural Health Products are a class of health products which include: vitamin and mineral supplements, herbal preparations, traditional and homeopathic medicines, probiotics and enzymes. The Canadian Health Food Association (CHFA) estimates the market value of NHPs to be $4 billion and OTC market value at $6 billion at the end of 2017, making a total of an estimated $10 billion of all consumer health products.
Canada is the 6th largest organic market globally, with North America (United States and Canada) accounting for 52% of the sales of organic foods globally. In 2018, Canadian retail sales of organic products reached CAD $4.94 billion. The organic sector increased its market share of 1.7% in 2012 to 3.2% in 2018. This growth is experienced across the industry, including grocery market sales, foodservice sales, value-added goods manufacturing, and primary production acreage. This Market Information Paper shows that imports of organic, ethnic and Fairtrade foods reached a total of CAD$1.9 in 2018, with growing opportunities for businesses to enter and expand their supplies within this niche market.
The demand for foods within this sector is tied to Canada’s growing immigration numbers, ethnically diverse population and increased consciousness among consumers regarding the health benefits of organic foods. While all industries are being cautious on account of the COVID-19 pandemic, the organic sector appears to be steady and growing, with grocery sales amounting to CAD$6.9 billion with a retained market share of 3.2% in 2020.
Consumers purchase the food in this sector through mainstream retailers like Wal-Mart, Loblaws and Metro; in large ethnic supermarkets like T& T; from natural food stores; from direct farmer channels; drug stores, and online purchases. Most supermarkets now have aisles and sections dedicated to organic, ethnic, and international foods making access and shopping easy for consumers.
We were able to use available statistical information to decipher the most imported certified organic products into Canada (coffee, bananas, strawberries and olive oil) and where they came from (e.g., U.S., Mexico and Peru). Also, we looked at where opportunities lie for new products and which countries are expanding their exports the most. For example, in the ethnic food category, supplies from India, Thailand, Vietnam, among other Asian countries, are steadily increasing with opportunities to supply products such for sauces and preparations, semi wholly milled rice and frozen shrimp or prawns.
Suppliers should carefully research the market entry requirements in this sector to ensure they meet the certification, packaging and labelling standards that govern organic products. Most of the foods in this sector come in through the same distributions channels as regular food.
The Public Health Agency of Canada estimates that 67% of direct health care expenses are spent on chronic conditions such as diabetes, asthma, and congestive heart failure; these conditions are becoming increasingly prevalent as the population ages. In 2006, the total prescription pharmaceutical market in Canada was $17.8 billion, up 7.9% from 2005. Generic drugs fill 45% of all prescriptions in Canada, yet in 2006 the brand name industry experienced its strongest performance in three years and growth is expected to continue at an annual rate of 7.5% to reach $24.4 billion in 2010. This report provides information on industry trends and other factors shaping demand, sales opportunities, trade practices, stringent import regulations and additional sources of information for exporters.
In terms of trends, you'll notice that imports in the provisionally-preserved category have remained steady (except for expanding, cherry markets), while markets in the canned food sector have shrunk (as Canadians have chosen healthier lifestyles involving less processed food and more fresh produce and prepared meals). Frozen food markets have also shrunk, except for increased demand for frozen fruits and vegetables, both of which tend to be cheaper than fresh produce while still offering similar health benefits. Of note, demand has jumped for frozen blueberries, frozen carrots, other frozen fruits and for canned tomatoes. (See section 3 for more details about trends and opportunities.)