Canada Bread Market Trends and Analysis by 2030

The bread market size is expected to grow from US$ 4,247.60 million in 2022 to US$ 5,443.63 million by 2030; it is estimated to register a CAGR of 3.1% from 2023 to 2030.

Market Insights and Analyst View:

Bread is a staple food made from a dough consisting of flour, water, yeast, and often other ingredients such as salt, sugar, and fat. The dough is typically baked, resulting in a soft, fluffy interior and a crusty outer layer. 

Growth Drivers and Challenges:

The hustle involved in balancing work, family, and social commitments is becoming increasingly hectic. People seek quick, convenient food options such as sliced bread, loaves, baguettes, bagels, and buns. Ready-to-eat bread varieties, including sliced bread and sandwiches, are among the most preferred food options. Thus, changing lifestyles and busy schedules have increased the demand for bread nationwide. According to the Agriculture and Agri-Food Canada Sector Trend Analysis, per capita expenditure on baked goods increased by 2.5% in 2018 to reach US$ 173.2 in 2022.

The trend of urban dwelling has increased considerably in Canada over the years. According to Canada Mortgage and Housing Corporation (CMHC), the number of housing was 244,025 in 2021, i.e., it rose 21% over the previous year, marking the highest level of new home construction on record. The increased housing construction in Canada has surged the demand for pre-packed and portion-bread products, providing an easy meal solution and eliminating the need for time-consuming food preparations. Individuals living alone often prefer ready-to-eat bread as it offers portion control, reduces food waste, and is convenient for solo meals. Thus, the increasing construction of single households across the country propels the demand for convenience foods, positively influencing the market growth in Canada. 

However, bread production requires whole-grain flour (e.g., wheat, rye, and barley), yeast, sugar, salt, and various natural additives and preservatives. As these ingredients are agricultural produce, they are subject to price fluctuations due to weather conditions, global supply and demand dynamics, and the seasonality nature of these agricultural products. When the prices of ingredients increase, it directly impacts the cost of bread production, leading to reduced profit margins for bread manufacturers. Price fluctuation makes it difficult for bread manufacturers to maintain stable pricing. Consumers quickly shift toward lower-price alternatives when the bread price increases. The price volatility in ingredients has posed a challenge for bread manufacturers, disrupting the procurement process and resulting in supply shortages, delays, or increased inventory costs. According to Statistics Canada, Canadian shoppers paid more for wheat-based food products, bread, rolls and buns, and breakfast cereal products in 2022. Canada recorded lower wheat production, i.e., down by 37.1% in 2021 due to drought conditions that arrived in Prairies. Therefore, Canadian food manufacturers paid 63.8% more for raw wheat in March 2022.

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Canada Bread Market: Strategic Insights

Canada Bread Market

• Market Size 2022
  US$ 4,247.60 Million
• Market Size 2030
  US$ 5,443.63 Million

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Regional Overview

• Canada

Market Segmentation

Type

• Loaves
• Sandwich Breads
• Baguettes
• Burger Buns

Category

• Organic and Conventional

Distribution Channel

• Supermarkets & Hypermarkets
• Specialty Stores
• Online Retail

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Report Segmentation and Scope:

The Canada bread market is segmented into type, category, and distribution channel. By type, the Canada bread market is divided into loaves, sandwich bread, baguettes, burger buns, and others. In terms of category, the Canada bread market is bifurcated into organic and conventional. Based on distribution channel, the Canada bread market is segmented into supermarkets and hypermarkets, specialty stores, online retail, and others.  

Segmental Analysis:

The bread market is segmented into loaves, sandwich bread, baguettes, and burger buns. The loaves segment is expected to be the largest segment during the forecast period. Loaves typically refer to a type of bread shaped and baked as a single, large unit. It is a common form of bread made from different types of grains, such as wheat, rye, or barley. Depending on specific recipes and preferences, it is prepared in different sizes and textures. The uses of loaves are quite versatile. They are primarily consumed as a staple food item. Loaves can be sliced and used for making sandwiches, toast, or as an accompaniment to soups, stews, or salads. They can also be used as a base for making bread pudding, French toast, or breadcrumbs for cooking and baking purposes. Loaves of bread are a convenient and quick option for meals and snacks, especially for busy individuals and families. They can be used in various dishes and cater to different dietary preferences, making them versatile.

The bread market is categorized as organic and conventional based on category. The organic segment is predicted to register a higher CAGR during the forecast period. Organic bread consists of ingredients grown without pesticides and is devoid of genetically modified organisms (GMOs), synthetic fertilizers, sewage sludge, or ionizing radiation. It is certified by a USDA-approved certifier as an organic product that complies with all National Organic Program (NOP) standards for storage, labeling, ingredients, and processing. Organic wheat bread is one of the leading products in the bread market due to its high nutritional profile. As no preservatives such as calcium propionate are added, organic and all-natural bread have a significantly shorter shelf life than conventional bread.

 The bread market is categorized online and offline based on distribution channels. The online segment is predicted to register a higher CAGR during the forecast period. People are increasingly buying bread online due to the convenience and accessibility it offers. Online bread shopping allows individuals to browse and purchase bread from a wide range of options from the comfort of their homes, saving time and effort. With the rise of online platforms and delivery services, people can easily access specialty bread from different regions or bakeries that may not be available locally. Reading reviews and comparing products online also helps customers make informed choices. Moreover, online bread shopping caters to busy lifestyles and dietary preferences, providing options such as gluten-free or vegan bread that may be harder to find in regular stores. The convenience, variety, and flexibility provided by online platforms have made them an increasingly popular choice for bread enthusiasts, thus positively favoring the market expansion.

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Regional Analysis:

The Canada bread market is expected to grow at a CAGR of 2.8% from 2023 to 2030. The Canadian bread market is driven due to several factors. Firstly, a growing demand for healthy and natural food options that allow consumers to choose high-quality bread products with wholesome ingredients. Secondly, people are increasingly opting for convenience food items such as bread, which is convenient to consume in a busy lifestyle. Also, many Canadians are adopting specialized diets, expanding the gluten-free bread market that caters to specific dietary needs.

The rise of artisanal and specialty bread stores has also created a strong preference for unique and flavorful bread varieties, prompting consumers to explore various options. Convenience plays a significant role, as online shopping has made it easier for consumers to access a diverse range of bread products and select accordingly. Also, a shift has been made in consumer living patterns and eating habits. In Canada, the rise in the consumer's purchasing power, along with the increasing demand for healthy products, is positively impacting the market. Besides, the unveiling of organic or clean label products by the players operating in Canada promotes the bread market growth.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the bread market are listed below:

On October 22, 2021, Dr. Schär introduced the world's first recycled plastic packaging for gluten-free bread. This initiative has created trust in food packaging experts while maintaining their products' taste, quality, and safety.

Covid-19 Impact: 

The COVID-19 pandemic initially affected the Canada bread market due to the shutdown of manufacturing units, shortage of labor, disruption of supply chains, and financial instability. The disruption of various industries due to the economic slowdown caused by the COVID-19 outbreak restrained the demand for bread. However, businesses are gaining ground as previously imposed limitations have been eased across various countries. Moreover, the introduction of COVID-19 vaccines by governments of different countries eased the situation, leading to a rise in business activities worldwide. Several markets, including the bread market, witnessed growth after the ease of lockdowns and movement restrictions.

Competitive Landscape and Key Companies:

Some of the prominent players operating in the global bread market include Three Bakers Gluten-Free Bakery, Dr. Schar AG, FGF Brands Inc, Dimpflmeier Bakery Ltd, Vibrant Health Products Inc, Wonder Brands Inc, Bakers Delight Holdings Ltd, Grey Matlock Bakery Inc, Grupo Bimbo SAB de CV, and Campbell Soup Co.

Canada Bread Report Scope