For small food companies looking for new sales revenues, Canada presents a compelling opportunity for financial success. In this blog post, we’ll delve into the financial benefits of launching Consumer Packaged Goods (CPG) products in Canada from the US, focusing on market size and potential, supported by key statistics.

Expansive Market Potential:

Canada’s CPG food market is substantial, with a value of over $42 billion CAD in 2022 and a population exceeding 38 million. Canada provides a substantial consumer base that is hungry for innovative food products. The sheer size of the market opens up revenue streams for companies seeking to establish and grow their brands.

Diverse Consumer Preferences:

The Canadian market is renowned for its diverse consumer preferences, offering companies the chance to tailor and or/test their products to various global preferences. The diversity also provides a robust opportunity for niche products to establish a customer base. Canadians pride themselves on their diversity and values of acceptance, making it a great market for products that may be struggling to become adopted into the mass market. 

Stable Economic Environment:

Canada’s policies and government structure differs from America, and although their dollar is often lower than the US dollar, the overall economy of Canada is extremely stable and resilient. 

A dependable economic foundation translates to a consumer base with disposable income. According to Statistics Canada, the average household expenditure on food in 2021 was over $8,600 CAD, creating an environment conducive to higher spending on premium and specialty food products.

Proximity for Cost-Effective Logistics:

The geographical proximity between the US and Canada contributes to cost-effective logistics. Most Canadians live within 100 miles of the border, and most are located in the large urban hubs such as Toronto, Montreal, Vancouver and Ottawa. Getting your product physically into Canadian stores is a streamlined process, with many options for logistics and transportation. 

Market Accessibility Through Trade Agreements:

The United States-Mexico-Canada Agreement (USMCA) facilitates market accessibility by reducing trade barriers. This agreement opens doors for small food companies to navigate the Canadian market more seamlessly, minimizing bureaucratic obstacles and potentially lowering market entry costs. If your product is made in North America, there are no additional tariffs or duties on the product if it is imported correctly. 

Grow Your Sales in Canada

In the realm of CPG expansion, the financial benefits of launching products in Canada from the US are evident. The vast market potential, diverse consumer preferences, stable economic environment, cost-effective logistics, and facilitative trade agreements collectively position Canada as an attractive destination for small food companies seeking financial success. By strategically tapping into this market, companies can not only enhance their revenue streams but also fortify their position in the competitive landscape of the CPG industry.