Cultivate a thriving F&B venture
in Ontario’s agri-food landscape
A surge on convenience, health-focus and plant based trends
The global Food & Beverage (F&B) sector is on an upwards trajectory. The market expanded from US The global market by revenue is projected to reach almost US $6.73 billion in 2022 to US $7.22 billion in 2023 growing at a compound annual growth rate (CAGR) of 7.3%. Projections show it reaching US $8.6 billion by 2025 and an impressive US $11.98 billion in 2030.
Several things are fuelling this growth. There is mounting demand for convenient yet healthy food choices and the boom in online food delivery services is reshaping purchasing habits and broadening the industry’s reach.
The organic food segment is cementing its market stance, with a predicted CAGR of 9.7% from 2023 to 2030. Plant-based offerings are mirroring shifts in dietary choices and growing environmental awareness. For instance, the plant-based meat sector alone is forecasted to swell to US $5.2 billion by 2023, boasting a CAGR of 19.2%.
Notably, the non-alcoholic category is drawing increased interest. Functional beverages – offering benefits beyond just hydration – and sports nutrition drinks spearhead this surge.
A mature manufacturing sector with widespread domestic and international reach
Canada’s food and beverage processing industry is the second-largest manufacturing sector in the country. This industry singularly contributes to 17% of the aggregate manufacturing sales while also accounting for 2% of Canada’s Gross Domestic Product. Notably, this sector is also the foremost manufacturing employer in the nation, encompassing a workforce of over 290,000 Canadians.
On an international front, Canadian processed food and beverage commodities are exported to approximately 192 countries. Of the total production, these exports represent one third of the industry’s output, while Canadian businesses and consumers buy the rest.
The segments that witnessed the biggest increase in exports were:
86% of Canadian F&B Manufacturing exports went to three primary markets:
A comprehensive range of food production resources in one place
200+ agricultural commodities are grown on Ontario’s farms, providing access to locally sourced ingredients and a highly integrated network of producers, processes, logistics firms and food distributors for international access. Services such as analytical laboratories, specialized packaging, dedicated storage and transportation enterprises are also available.
Given the robust infrastructure, many of the world’s leading F&B manufacturers, such as Coca-Cola, Nestle, Pepsico, Kellogg’s, Unilever, and Kraft Heinz, have operations here.
Ontario has a substantial workforce skilled in agriculture and manufacturing, covering both technical and managerial positions. This is supported by a publicly funded education structure that comprises 23 universities and 24 colleges. 70% of the adult workforce in Ontario has a post-secondary education, more than any other country in the OECD. The average manufacturing job tenure in Ontario is 9.5 years, which is longer than the U.S. average of 5.5 years. This longer tenure can lead to reduced transition and training costs.
Canada’s trade agreements cover markets valued at over US $50 trillion with access to 1.7 billion consumers. Canada has free trade agreements with the largest manufacturing markets in the world: the United States (USMCA), the European Union (CETA) and Asia-Pacific (CPTPP).
Your business can have access to 187 million consumers within a day’s drive of the Greater Toronto Area. Ontario has 4 international and 300 regional airports, 250,000 km of roads and highways, a dozen border crossings and the 6th most internationally connected airport in the world.
See all of our programs and find out how TBDC can maximize the potential in your F&B Manufacturing business.
largest F&B sector in North America
employees
in annual sales
F&B manufacturers
of Ontario’s GDP – the province’s highest
most internationally connected airport
Funding, Resources and Organizations
Using the Business Benefit Finder, you can find many more government grants and incentives relevant to your tech startup.
is an applied food research lab in Cambridge offering services from formula development to shelf-life studies. Visit Site
at Niagara College supports research for novel F&B products from development to small-batch production. Visit Site
represents food and beverage processors in Ontario and advocates for their interests. They are a not-for-profit leadership organization dedicated to advancing Ontario’s food and beverage industry. They also provide networking opportunities and support for businesses in the industry.
Visit Site
based in Colborne, offers shared production and storage facilities for food entrepreneurs. Visit Site
represents small and independent craft brewers in Ontario and promotes the growth of the craft beer industry in the province. Visit Site
are known as the ‘stock exchange’ for fruits and vegetables. They are the largest wholesale fruit and vegetable distribution centre in Canada (located in Toronto) and the third largest in North America. It plays a crucial role in the supply chain for many food and beverage manufacturers in Ontario, distributing over two billion pounds of produce annually (an average of 5.6 million pounds per day). Visit Site
