There is a growing market for food products in Canada. The Canadian non-traditional retail grocery sector is growing and food is a significant factor in the expansion of the sector. Driving this expansion is the time-pressed consumer in search of convenience – and the preferred destination is one-stop shopping. US food producers and processors are encouraged to explore opportunities in this expanding market.
Sales of grocery items at the retail level continue to increase, and demand is growing for products that are high in quality, nutritional value and offer unique flavors. Best opportunities exist for ethnic foods, value-added frozen entrees, value-added fresh produce and frozen seafood.
We analyze the Food Retail Industry in Canada in Michael Porter’s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.
