Canada’s organic market – already the fifth largest in the world – now represents 2.6% of total grocery sales in the country (Nielsen data, 2017).
Announcing the news at the start of Organic Week (Sept. 8-16), the Canada Organic Trade Association (COTA) says that six years of “tremendous growth” – market share was at 1.7% in 2012 – has transformed an industry that had been considered small and niche.
COTA says that consumer demand for organics is growing at an “unprecedented pace, allowing organic to hold the title of the fastest growing sector in Canadian agriculture”. .
Canadian farmers are increasingly adopting organic methods of production to keep up with the demand. According to the 2016 Census of Agriculture, organic is steadily seeing increases in the number of producers and acreage while attracting a rising proportion of new and young farmers. This growth is happening at the same time that non-organic farmer numbers and non-organic acreage is declining.
Between 2011 and 2016, the Census of Agriculture recorded the following changes.
- While total farmland decreases nationally, organic acreage is the one form of agricultural production that continues to see significant increases.
- Total acreage: ↓ 0.9%
- Organic acreage: ↑ 45%
- While the number of farms is similarly decreasing, there are more and more organic farms each year.
- Total number of farms: ↓ 5.9%
- Number of certified and transitional organic farms: ↑ 4.1%
- Organic farmers are, on average, younger than non-organic farmers.
- 6% of organic farmers are under 35.
- 9% of non-organic farmers are under 35.
Organic Food Service Study 2018
COTA’s soon-to-be-released Organic Food Service Study 2018 illustrates that consumer demand remains high, continuing to push the industry to offer more and more organic options in food service settings. The research, conducted by Technomic, Inc. outlines the market share of organic by product categories and food service venues. The report highlights high-level organic trends in food service offerings in restaurants, fast food venues, cafes, institutional settings (such as hospitals and schools) and more. Canada’s organic food service market was estimated at CAD555 million in 2017, with 74% of this volume coming from organic food sales and 26% from organic beverage sales. Nearly a third of all organic foods in food service are within the travel and leisure environments. It also highlights the perspectives of foodservice operators on the future demand for organic and why they feel consumers demand organic in a food service setting.
Ready-to-go and value-added organic products
Though produce continues to be the largest category in the organic food and beverage market by value, there has been heightened demand for ready-to-go and value-added organic products (a manufactured product that adds value beyond the primary ingredient). The research shows that the organic food processing sector in Canada is on solid footing with respect to growth and economic health with businesses reporting year-over-year growth in excess of 10%.
As new venues demand more organic, innovation in value-added products is required to be suitable for grab-and-go environments and to meet the needs of the organic consumer who wants an organic alternative. COTA will be releasing next month a detailed report on the Canadian organic food and beverage processing sector. This will be the first report of its kind in Canada detailing Canada’s key organic processing categories including sales, trends, technical considerations, key players and innovations within each category. A few key highlights from the report are that non-alcoholic beverages, dairy and ready-made meals are the top-performing organic processed categories.
Building a better world
Tia Loftsgard, executive director, Canada Organic Trade Association (COTA), comments: “In the 9 years since the inception of Organic Week, the organic market has grown substantially. The numbers speak for themselves, with the Canadian market now valued at CAD5.4 billion. More than ever Canadians are wanting sustainably produced foods that avoid preservatives, synthetic fertilizers, artificial and genetically engineered ingredients (GMOs).
Arran Stephens, Co-Founder and Co-CEO of organic pioneer brand, Nature’s Path, says: “At Nature’s Path, as always organic, we believe organic can protect and enhance the health of both people and planet. Organic can build a better world free from chemical residues in food and free of toxic environments for farmers. We continue to support and work with the Canada Organic Trade Association as they work to protect, build and grow our vibrant organic sector for our country.”