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2021 Food and Beverage Report: Creating opportunity from resilience

Reference: FCC

The FCC Food and Beverage Report highlights opportunities and risks for Canadian food manufacturers to help navigate the economic recovery. Industries featured in the report are:
  • Grain and oilseed milling
  • Sugar and confectionery products
  • Fruit, vegetable and specialty food
  • Dairy products
  • Meat products
  • Seafood preparation
  • Bakery and tortilla products
  • Beverages
Resilience will pay off

The onset of COVID-19 provoked shockwaves throughout the agri-food supply chain. Shutting down foodservices caused significant disruptions as manufacturers were forced to re-evaluate their current business strategies and sometimes move production away from foodservice to the grocery store. New concerns over employee health forced companies to make significant investments in personal protective equipment (PPE) and adjust production processes. Vaccines bring hope as economies gradually re-open, but the pandemic still looms large on the economy.

1. Food and beverage sector should continue to outperform the overall economy

Food and beverage manufacturing sales increased 3.5% year-over-year (YoY) to $122.9 billion in 2020 (table 1). Declines in sales to the foodservice industry were offset by increases in domestic grocery store sales and growing exports. GDP for food and beverage manufacturing fell 1.0% from lower investment and higher costs.

Food manufacturing sales are projected to increase 4.8% in 2021, driven by:

Increases in disposable income and savings in 2020 will be supportive of domestic food purchases
Robust export markets as food and beverage exports represent an estimated 32.0% of overall sales... Read More