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Wide presence of multi-chain stores driving Canada frozen bakery trends

Wire India

Selbyville, Delaware, United States, November 4 2020 (Wiredrelease) Global Market Insights, Inc –:The global frozen foods and bakery business has emerged as one of the fastest-growing segments of the food and nutrition industry. Canada, over the last few decades, has positioned itself well enough for lucrative investment opportunities in the sector. Robust developments in the Canadian retail and multi-chain outlets, thriving the nation’s economic growth and investment trends, has been identified as an integral factor impelling Canada to hold a considerable chunk of the global frozen bakery market. 

Some of the leading retail store giants in the country include Empire Company Ltd., George Weston Limited, Costco, and Walmart Stores Inc. In September 2020, Costco Canada recorded an increase in comp sales of 9.1%, indicating a favorable landscape for frozen food providers amid the COVID-19 crisis. 

It is anticipated that Canada frozen bakery market size could reach US$4.1 billion in yearly revenues by 2024. The small and multichain retailers present in Canada are also known to contribute heavily to the nation’s GDP due to the widespread dependence of the people on on-the-go, ready to eat food and beverages.

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High consumption of bread

Hectic lifestyles and busy work schedules have fortified the demand for frozen bakery products like specialty breads, desserts, sandwiches and rolls, donuts, bagels, and various others in North America. 

The region is a leading consumer of bread. For instance, in the year 2017, the total bread sales stood at US$3.5 billion in Canada. Increasing efforts made by the global and Canadian industry players to meet the changing food preferences of the consumers towards convenience food items has supplemented Canada frozen bakery industry forecast. 

Government control on trans-fat

In the year 2018, the Ministry of Health, Canada announced a ban on partially hydrogenated oils or PHOs- which is the largest source of industrially produced trans fat in food. This led to the dismissal of the use of artificial trans-fat in bakery items like pastries, muffins, and donuts that are sold across the country. This showcased the significant testimony to the nation’s responsive governance as well as the companies, while helping transform the regional frozen food production sector.

Online purchases during COVID-19 

Amidst the coronavirus pandemic, the frozen bakery industry in Canada witnessed considerable gains, with people storing food items at home that had a longer shelf life. This helps them restrict the need to step out of their homes again and again. 

Most people across the country relied on e-commerce purchases to ensure contactless transactions. Reportedly, online sales in Canada witnessed a 99% surge between February-May 2020 during the COVID-19 outbreak, with a record-breaking e-commerce sales valuation of US$3.9 billion in May 2020. 

The continued dependence on online purchases will subsequently support the easier access to and the sale of frozen bakery goods in Canada.

The introduction of advanced technologies for bakery manufacturing has propelled the production and distribution for frozen bakery items globally. Witnessing the changing consumer demand scenario and the need to address the food trends, industry players present in Canada are adopting advanced solutions to enhance their offerings. 

For instance, in April 2019, Bimbo Canada- a subsidiary of Group Bimbo which is one of the leading baking brands in the world, joined hands with Antuit- an AI solutions provider to offer AI capabilities for demand fulfillment and planning using the company’s novel AI-led forecasting solutions. The deal aimed at helping Group Bimbo drive significant improvements in order management and accuracy to control returns and ensure product freshness. 

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