SKUFood trends are unique
As we come to the end of 2025 you will see a lot of trend reports to help you in your business. Most of the trend reports in the food industry are focused on consumers, which is very important. At SKUFood our focus is on producers and processors and the issues impacting your business. Obviously, consumers impact your business but customers (retailers and distributors) do as well. Each year we capture information through the year that we consolidate into our SKUFood trends. These are created to help you see the issues that could impact your business in the near future.
2026 trends impacting Canadian food and beverage industry
1. Canadian content
During 2025 many Canadians have endured the roller coaster ride of the Canada-U.S. trade relationship. Consumers responded with an increased patriotism that led to a desire for Canadian content in their shopping cart. Retailers have responded with signage and more focus on Canadian produced products. Although it can be confusing with labelling regulations and some consumer marketing, the numbers tell us there is an increase in tonnage for Canadian products and a decrease for U.S. products. The political situation is not going to change soon, so Canadian producers and processors need to make it clear where their products are produced for both consumers and customers. It can make the difference.
2. Export beyond the U.S.
Despite efforts to negotiate a reduction in tariffs and begin work on a new Canada/U.S./Mexico trade agreement, the Canadian government is clear they want to reduce our dependence on exports to the U.S. Look for support for Canadian producers and processors to grow volume within Canada and export markets beyond the U.S. There are many opportunities in Asia and Europe for Canadian products. It is more challenging with logistics and language, but these are huge markets and there will be programs to assist with learning and execution. It takes time to develop these opportunities, start working on them now.
3. Tonnage growth will be a real win
In recent years the Canadian population has been growing, primarily through immigration, international students and other people coming into Canada to work or to seek asylum. Government projections state this will slow down or even decline. Food and beverage sales are linked to population changes. Although consumers can change the mix in their basket, which impacts sales, usually more people translates into higher sales. With low to no population growth, suppliers and retailers will need to take consumers from their competition to demonstrate growth. Trade spend and other investments need to focus on this strategy.
4. Sales role continues to shift to technical capability from relationships
Retailers expect suppliers to do more work as they shift data entry for listings, price quotes and promo planning to suppliers. This can be a challenge and the technical expertise is more than just understanding a spread sheet. Every retailer’s system is different and the instructions to help suppliers understand how to do it are not always great. They just expect suppliers to know. Some retailers are also eliminating the social components of the relationship with new policies designed to reduce or eliminate the gifts such as tickets or dinners employees can accept.
5. The decline of conventional stores continues
Formats such as discount, club, mass, dollar stores and online options continue to grow market share. The one format that cannot seem to get any momentum, since the Covid-19 pandemic is conventional stores. This poses a challenge for Canadian based retailers who have significant investments in underperforming conventional stores. This also impacts producers and processors. Conventional stores have the biggest listing bases where some people depend on being the number 3 or 4 brand in the category. These brands do not make it to the shelf in some of the formats growing in share. Retailers with conventional stores will be looking for more price-based programs to drive traffic.
6. This is an opportunity to define a Canadian food and beverage industry
For a long time, our Canadian industry has been in the shadow of the U.S. industry. As we shift to develop domestic and export markets, we should showcase the benefits of Canadian food and beverage to the world. Excellent quality raw materials, rigorous food safety oversight and people who are dependable and fair to do business with could be the foundation of a Canadian reputation throughout the world. Make it very clear where your product is produced and the ingredients you are using. Take advantage of the Canada Brand program if you are exporting. Producers and processors need to participate in the conversation and help all Canadian products define a distinct position in the market.
7. U.S. policy will impact Canadian processors
The administration in the U.S. is aggressively pursuing change to food ingredients and processing. As policy changes to eliminate specific ingredients such as artificial dyes are implemented, Canadian processors should be exploring options if they are using these ingredients. Supply could be a challenge and products will not be permitted into the U.S. market. The U.S. are heading down a path of discussion about ultra processed foods (UPF). We even see certifications for non-UPF. Another trend in the US market that will impact Canada is the rapid adoption of GLP-1 drugs. These appetite suppressing prescription drugs will impact sales in some categories.
8. Additions to existing products to create new items
Consumers are being inundated with protein and adaptogens in several categories. Protein is being added to many items from pancakes to water. Mushrooms and ginseng are appearing in beverages to boost immune systems and raise energy levels. Unfortunately, some people might start to believe if there is no additive, there is something missing. Many consumers will make the decision to buy at the shelf. Spend time in the stores to ensure your value proposition is compelling.
9. Code of conduct dispute resolution in play
The Canadian Grocery Code of Conduct has been taking shape and they are actively seeking people to serve in the role of dispute resolution. This should be a positive step to level the playing field in the value chain. It will be interesting to see if any companies pursue this avenue or if the implementation is a deterrent and there are no issues worth taking to this level.
10. Stay with your category as prices change
Production of raw materials has been challenged, geo political issues and consumer demand continue to impact prices of inputs. Some are going up and some have even gone down. Producers and processors need to stay very close to these changes, as retailers are watching them. If your competition has moved up and you do not, your customers wonder why not and you will risk getting the increase in the future when you really need it. If your competition are going down and you are not, you might get challenged on your costing.
We hope these trends help you in your business as you take on the challenges of another year in this industry. We always appreciate any feedback you have!
Peter
SKUFood Recipes for Success Podcast
In this episode of SKUFood Recipes for Success, we sit down with Natalie Frederick-Wilson, Business Advisor at the Centre for Women in Business and program lead for SPICE – the Specialized Program in Cooking Entrepreneurship.
With a focus on empowering under-represented women—particularly Black Nova Scotian, Indigenous, immigrant, and newcomer entrepreneurs—Natalie shares how SPICE helps food founders turn their passion for cooking into sustainable, scalable businesses. From accessing commercial kitchens to understanding food safety regulations and navigating co-packing partnerships, she reveals the practical supports and community connections that help level the playing field in Canada’s food industry.
Hear how SPICE is reshaping food entrepreneurship through hands-on business training, mentorship, and manufacturing readiness—and why inclusive support systems are key to building a stronger, more diverse food ecosystem.
If you like what you heard leave us a comment or a review and subscribe wherever you listen to your podcasts.
If you would like to be a guest send us a note. We are always working on the upcoming episodes.
One of the best parts of my job is the opportunity to moderate peer groups for FCC. We meet once per month and discuss issues in the industry, challenges people have and opportunities. This is a great format for food and beverage entrepreneurs to talk with other people who are trying to accomplish similar goals. I have been fortunate to be part of the program since its inception. If you are interested give me a call or use this link to register.
Nourish Marketing Trend Report
Jo-Ann McArthur and her team at Nourish Marketing do a great job compiling trends for you to explore. There is no doubt consumers continue to evolve and it is probably happening faster than ever. These trends give you their perspective on how consumers are changing and how it impacts your space in our industry.
Where is Peter speaking?
With the focus on Canadian food and beverage we wanted to share a program we have developed with Alain Bosse, the Kilted Chef. We partner to share insights about Canadian food and beverage at conferences and events. We talk about where products come from, share insights about some hidden gems and of course Chef Alain has great tips for using the products at home. This is designed to be entertaining and engaging. Not just for food industry audiences, it works for everyone.
I do have travel coming up to Toronto and Fredericton so if you want to connect or have an event in any of these locations give me a call or send me an email.