Determinants Of Demand In Canada

Consumer tastes and preferences are major determinants of demand in the food processing industry, in particular the rising trend of health concerns by consumers. Generally, Canadians are interested in leading healthier lives, and so demand for natural, wholesome and healthy food products is rapidly growing. Food and beverage products that target specific health concerns, such as gluten-free or low-fat products, as well as those with a higher nutritional value tend to have significantly higher demand (Government of Canada, 2010).

Across Canada and all of North America, there is a trend toward eating locally,as well as eating an increasingly meatless diet. There is also an expressed interest in natural products, which are perceived to be healthier. According to Statistics Canada, per capita consumption of beef dropped from 30.75 kilograms per person in 2001 to 27.69 kilograms in 2010. Similarly, pork consumption decreased from 28.94 kilograms to 21.69 (www.alma.alberta.ca, 2014). This trend is expected to continue since consumers are more inclined to eat locally, naturally and

While all consumers require food, those with higher disposable incomes spend a relatively smaller percentage of that disposable income on food, while those with little disposable income spend almost all of it on food, particularly processed food. In Canada, low income consumers consume more packaged and highly processed foods because they are cheap (Euromonitor, 2014). Food, beverage and tobacco expenditures represent the second largest consumer goods expenditure; in 2008, Canadians spent $111 billion, or 26.8% of their total expenditures on consumer goods, on food beverage and tobacco products, a category that includes processed foods (Government of Canada, 2010). See figure 4 for an international comparison of household FBT expenditures