Despite the major challenges faced in recent years, including the COVID-19 pandemic and continuous inflationary pressure, the food industry is still a prominent one in Canada—in 2022 alone, sales of food and beverage retailers accounted for more than 147 billion dollars, and it is expected the food service market will reach an impressive 261.09 billion by 2029.
The industry will continue to evolve throughout 2024, with trends shaped by various factors, ranging from tech developments to concerns regarding sustainability and a shift towards healthier foods. In this blog, we will dive deeper into these food trends that are set to transform the Canadian food landscape, so keep reading to learn more.
Sustainable consumption of foods
In recent years, Canadians have become increasingly aware of environmental issues, and in 2024, sustainability will continue to influence their food choices. Some consumers—especially those from younger generations—are willing to pay more for a product with a lower climate impact despite the increase in food prices.
In fact, 48% of Canadian consumers have mentioned that they seek to address the climate change issue in 2024 by planning their meals effectively and writing their shopping lists more attentively. As part of the sustainability food trend, consumers increasingly seek organic and locally sourced foods and buy from brands that adopt eco-friendly packaging. They are demanding clarity from food retailers, as they want to know where their food comes from while also ensuring that the ingredients are good and nutritious. This shows a growing need for transparency, requiring Canadian restaurants to respond by offering detailed information about sourcing and crafting their menus to ensure more natural options, thus meeting the needs of consumers.
The emergence of AI and tech
Tech developments have impacted many industries, and the food sector makes no difference. This year, AI-powered personalization will reshape the food service industry, enabling establishments to customise their offerings based on individual customer preferences.
New tech developments are becoming increasingly popular, impacting how consumers eat and drink outside and helping food retailers personalise their menus and offer recommendations, ultimately contributing to a better customer experience. It is worth noting that AI plays a massive role in the food industry in aspects like food preparation and dining, as well as restaurant operations. AI shows up in the food industry through the integration of smart kitchen appliances, the use of predictive analytics and the implementation of automated cooking systems, and is transforming how food retailers interact with customers, ultimately resulting in efficiency gains and revenue growth. Without a doubt, food businesses that are early to adopt AI in their operations will thrive in the Canadian market, catering to consumers’ shifting needs.
A stronger preference for healthier foods
According to reports, 55% of Canadians have set eating healthily as a goal for this year, as they have become increasingly aware of the direct impact of their diets on their health. As a result, consumers are now looking for foods that provide functional benefits, including gut health, immune system support, and enhanced mental wellbeing. There is a rising interest in adaptogens and nootropics – which have positioned themselves as leading ingredients – as they are believed to increase the body’s resilience to stress and even reduce anxiety, thus enhancing overall wellbeing. Moreover, Canadians seek to consume more prebiotics and probiotics found in foods such as vegetables, fruits ( e.g., bananas and berries), and grains, including barley, oats and rye.
With health consciousness being a key driver of food trends in Canada, food retailers must pay more attention than ever to creating healthy menus that can meet the needs of consumers. This is particularly important, considering that some consumers struggle to pick healthier options when dining at a restaurant. It’s one thing to cook meals at home in your stunning kitchen – which you may have just revamped by investing in kitchen units from a reputable manufacturer like kitchen warehouse ltd- as you have a better control on the nutritional value of your recipes. When dining out, however, things are a bit different, and naturally, you want to opt for the best alternatives. Food retailers should keep this aspect in mind and ensure that they are transparent and offer a variety of plant-based foods ( that are ethically sourced), those checking the healthy diet box that consumers insist on these days.
Immersive dining experiences
The eatertainment concept is gaining increasing popularity, particularly among millennials, driving restaurants to leverage interactive elements and create meaningful experiences for their guests. This concept is worth paying attention to, because it helps generate positive word-of-mouth, ultimately helping restaurants thrive in a shifting landscape where staying competitive isn’t easy. But what is it all about? Well, simply put, eatertainment is about merging the experience of dining and entertainment to captivate customers, and it has a huge potential, because it enables restaurant and bar owners to differentiate themselves and increase their revenue. Providing an eatertainment experience for consumers can also increase their duration stay, which can translate into increased expenses for food, beverages and other amenities.
However, it’s worth noting that details are essential when offering the best eatertainment experience to consumers, so it’s imperative to consider décor, lighting, sound, and other relevant aspects that can impact how they will feel.
The bottom line
As we look towards the future, it’s evident that the food industry in Canada is poised for massive growth, with trends like technological innovations, sustainability concerns and consumer health consciousness driving transformation in the sector. Therefore, businesses operating in the Canadian food sector have no choice but to stay abreast of consumer behaviour if they want to succeed in this dynamic marketplace.
As in any other sector, it’s paramount to adopt a customer-centric approach and give people what they want, because that is the only way your business can thrive in the long run. By aligning with customers’ values, you can position yourself as a top player in the Canadian food industry, helping them meet their health and wellness goals and offer memorable dining experiences, thus fostering a strong bond with them and encouraging repeat dining.
