Canada's most authoritative and exciting grocery b2b publication
Industry News2022 FCC Food Industry Report: Growth amid inflationary pressures

2022 FCC Food Industry Report: Growth amid inflationary pressures

food_report-9472148

SPONSORED CONTENT

The annual FCC Food Report reviews last year’s economic environment and highlights opportunities and risks for Canadian food manufacturers for 2022. This includes an annual sales forecast, grocery sales performance, and a new gross margin index.

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

Several external factors impacted Canadian food industries in 2021, which have resulted in higher input costs, amplified labour shortages and upended food consumption patterns. In early 2021, there was hope that the pandemic could soon be behind us; however, new variants provoked more disruptions, restrictions and uncertainty. Despite these challenges, food manufacturers’ performance proved to be strong.

Here are key observations from this year’s report:

Gross margins as a percent of sales in food manufacturing increased in 2021 YoY but remain below historical levels and below 2019. Manufacturers have struggled to fully pass on higher labour and material costs for almost a decade. But margins improved slightly in 2021. At the individual industry level, results widely differ, which we dive into in the report.

Food manufacturing sales increased 14.8 per cent YoY to $125 billion in 2021. This is the strongest YoY sales growth in recorded history (starting in 1992). Increased foodservice volumes and higher selling prices offset volume declines at grocery stores.

Food manufacturing sales are projected to increase 7.4 per cent in 2022, driven by:

  • Historically strong disposable income and accumulated savings in 2021
  • Food prices remaining elevated

Robust export markets with food exports representing an estimated 36.8 per cent of overall sales.

www.fcc.ca/foodreport

Kyle Burak, FCC Senior Economist

Follow us:









Recent Issues

Related Articles