Specialty Food Stores in Canada - Industry Market Research Report

Spice of life: Rising external competition will limit operators' ability to further raise prices

The organic, gourmet or all-natural products of the Specialty Food Stores industry in Canada have flown off shelves as consumers have reached for differentiated goods that aren't sold at standard retail and grocery outlets. These products sell at premium prices, and the combination of increasingly health-conscious consumers and disposable income growth has allowed retailers to charge higher prices. While the industry faced headwinds from economic volatility caused by COVID-19, consumer demand for organic and other specialty foods persevered and has driven a broad rise in revenue for specialty food retailers. Industry revenue is forecast to grow at a CAGR of 2.3% to $4.5 billion over the five years to 2023, including 3.5% during the current year. Still, the temporary closure of some stores at the height of the pandemic and supply chain disruptions caused a large contraction in profitability across the industry in 2020.

Operators in the Specialty Food Stores industry in Canada retail specialized food products, including baked goods, confectionery, nuts, dairy products, coffee, tea and soft drinks. This industry only retails packaged products and excludes operators that sell products for immediate consumption, such as coffee shops. Butcher shops, seafood markets and produce markets are also excluded from this industry, along with producers of chocolate, bread and bakery goods.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.