5.3 Sectors in Canada that make up Canada’s Bioeconomy
Agricultural Sector
Throughout 2022, Canada stood out as a prominent market for U.S. agricultural exports, constituting a significant portion of the total at US$28.3 billion, nearly fifteen percentage of all U.S. agricultural exports. A substantial chunk, approximately US$19.7 billion, accounting for almost 70% of these exports, comprised consumer-oriented agricultural exports to Canada. These products encompass various categories like baked goods, cereals, vegetables, fruits, meat, beverages, food preparations, chocolate, condiments, coffee, wine, beer, and pet food. Conversely, the United States imported over US$37 billion worth of agricultural products from Canada during the same period.
Of note, Canada represents the primary destination for U.S. exports of high-value agricultural products, holding a 24 percentage market share in 2022, with a total value of US$19.7 billion. These consumer-oriented agricultural products, typically found in supermarkets and utilized in restaurants, significantly contribute to employment in the United States, supporting over 135,000 jobs, many of which stem from small and medium-sized businesses. Since 1989, the majority of U.S. agricultural products have enjoyed duty-free entry into Canada, facilitated by trade agreements like the USMCA (formerly NAFTA and the U.S.-Canada Free Trade Agreement). However, notable exceptions exist in supply-managed sectors such as dairy, chicken, turkey, and eggs, which remain subject to tariffs and regulations.
Food Sector
In 2022, foodservice sales surged to US$73 billion, marking a substantial 17% rise from the previous year. This sector comprises two primary segments: commercial and non-commercial. The commercial segment, which encompasses quick-service restaurants, full-service restaurants, caterers, and drinking establishments, contributes significantly, accounting for approximately 83% of total foodservice sales, equivalent to an estimated US$52.2 billion. Meanwhile, the non-commercial subsector constitutes the remaining 17% of Canada’s foodservice sales, covering tourism-related sales at hotels, accommodation food service, institutional sales, vending machines, and other similar entities. A closer examination of the commercial sector unveils that quick-service establishments retain the largest market share, closely followed by full-service restaurants. The shift in customer behavior, influenced by the pandemic, notably altered the way people order and consume food. Takeout, delivery orders, and fast foods experienced a notable upswing, increasing by 27% in 2022.