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Canada Foodservice Packaging Market - Growth, Trends, COVID-19 Impact, and Forecast - (2023-2028)

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  • 104 Pages
  • April 2023
  • Region: Canada
  • Mordor Intelligence
  • ID: 5764342
The Canadian foodservice packaging market is expected to grow at a CAGR of 8.5% over the forecast period. Demand for convenient and portable products due to busy lifestyles intensifies the packaging industry in Canada. Product packaging with flexible, resealable, eco-friendly, and sustainable formats are expected to gain momentum in the country.

Key Highlights

  • The packing industry has gone through an immense transformation over the last couple of years, owing to the increase in the number of start-ups across the country, the introduction of the diversified category of food and non-food products, and increased demand for food and beverages during the pandemic has boosted the demand for the Canadian foodservice packaging market.
  • The foodservice packaging business has experienced consistent growth over the last decade, owing to substrate choice changes, new market expansion, and ownership dynamics. Sustainability and environmental issues will continue to be emphasized, particularly in Canada, and various innovations are catering to corrugated boxes, cartons, and plastic packaging are witnessing in the market.
  • The COVID-19 pandemic adversely affected Canada's fast food industry due to the rising cases and fear of contracting the infection from food. Furthermore, the operational disruptions in the hotel and food & beverages industry, and disruption in the supply chain due to the COVID-19 outbreak have impacted the Canadian foodservice packaging market in terms of revenue.
  • For many countries, including Canada's essential trading partners, the Russia-Ukraine war has had a significant impact. Higher inflation is expected to negatively affect household spending in Canada. However, Canada's resource producers are expected to see an associated spike in resource price, thus providing a boost to profits, private investment, and government revenues.

Canada Foodservice Packaging Market Trends

Demand for Convenience Food Remains High in Canada

  • The food and beverage industry surged during the pandemic as an increasing number of people across the country stocked up their supplies during lockdowns. Due to this, the packaging industry also surged exponentially. In addition, packaging has undergone transformational changes since the inception of flexible packaging. Numerous manufacturers have considered its benefits in production costs, marketing, and product promotion.
  • Consumer health consciousness and increased demand for healthy and tasty food are driving the market growth of convenience food. The high female employment rate also positively impacts the market; growth in several fast-food restaurants, which results in easy access to fast food and tech-savvy ordering, fueling the development of the Canadian fast-food industry, has increased demand for food service packaging solutions. Furthermore, increased exposure to international cuisine through media and travel will fuel the growth of this market.
  • Many companies focus on product innovations to hold a significant position in the market studied. For instance, in November 2021, Tupperware designed a custom-made reusable packaging container for Tim Hortons. The container was scheduled to be trailed in five Tim Hortons locations in Burlington, Canada. The goal is to create a simple system for restaurants and guests, letting them enjoy reusables while maintaining single-use convenience. The containers were Tupperware's first collaboration with TerraCycle's Loop reuse platform.
  • Fast food is extensively used in end-user industries like Quick Service Restaurants (QSR), Street Vendors, Home Delivery, Cafés, bars, etc. Quick-service restaurants are the most favored by Canadian consumers, increasing demand for fresh, tasty, and appealing food at affordable cost. Thus, the need for packaging in Canadian foodservice is rising.

Quick-service Restaurants (QSR) Expected to Grow in Future

  • Despite the fast-paced at-home lifestyle era, QSRs have managed to satisfy a fundamental need in today's social climate. The ability to order hot-and-ready meals online has become a critical pillar for QSRs. Canadians frequently prefer quick-service restaurants as an easy and delicious alternative to cooking meals at home while juggling COVID-19 restrictions and their busy lifestyles.
  • The Canadian food industry has changed and evolved to meet customer needs and consumer behavior. As a result, fast food has seen its roots in developing economies over time, primarily due to its quick availability and taste. Food service packaging is gaining popularity as more consumers choose takeout and delivery while operators continue to prioritize food safety and efficiency behind the scenes.
  • According to data from Restaurants Canada, the Canadian commercial food service industry will grow significantly throughout 2022, outpacing its nominal 2020 decline by USD74.6 billion, a 22% increase over 2021. Quick-service restaurants will be worth USD 37.4 billion in Canada alone by 2025.
  • The recent data published by StatCan in October 2022 showed that Canada's food services and drinking places are heavily impacted by COVID-19. However, in 2021 sales began to reflect pre-pandemic levels again. in July 2021, sales of Canadian Dollars were recorded at 6.7 billion. Additionally, in August 2022, the sales of the month of food services and drinking places in Canada amounted to 7.85 Billion.
  • For instance, in October 2021, McDonald's Canada stated that it would be getting rid of plastic cutlery, stir sticks, and straws by December 2021. The phase-out has occurred at more than 1,400 Canadian locations and comes as the government of Canada moves to ban single-use plastics, with regulations finalized by the end of 2021. Wooden cutlery and stir sticks were already being rolled out in restaurants, with paper straws from November 2021. McDonald's aims to use 100% recycled, renewable or reusable materials in all its customer packaging in all of its restaurants by 2025.

Canada Foodservice Packaging Market Competitor Analysis

The Canadian Foodservice packaging market is fragmented, as many players have a presence in the market through their offerings. With innovations and demand, the market is attractive for new players. Dart Container Corporation, Berry Global Inc., Pactiv Evergreen Inc., Novolex, and Amhil North America are some of the key market players.

In October 2022, Imperial Dade, an independently owned and operated distributor of foodservice packaging, set to launch the Victoria bay product line. The product line includes disposables, packaging, bags, napkins, and more for foodservice in Canada.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Demand for Convenience Food Remains High in Canada
4.2.2 Growing Demand for Sustainable Packaging Solution
4.3 Market Challenges
4.3.1 Dynamic Nature of Regulatory Changes
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Intensity of Competitive Rivalry
4.4.5 Threat of Substitutes
4.5 Assessment of the Impact of COVID-19 on the Canadian Foodservice Packaging Market
5.1 By Material Type
5.1.1 Rigid Corrugated Boxes Paperbaord Boxes Plastic Containers Metal Cans Other Rigid Material Types (Stirrer/Straws, Cutlery, etc.)
5.1.2 Flexible Pouches Paper, Film, and Foil Bags and Sacks Trays, Plates, and Food Bowls Other Flexible Material Types
5.2 By Application
5.2.1 Fruits and Vegetables
5.2.2 Baked Goods
5.2.3 Dairy Products
5.2.4 Meat and Poultry
5.2.5 Specialty Processed Foods
5.2.6 Other Applications
5.3 By End-user Industry
5.3.1 Restaurants Quick-service Full-service Other Restaurants
5.3.2 Institutional and Hospitality
6.1 Company Profiles
6.1.1 Pactiv Evergreen Inc.
6.1.2 Dart Container Corporation
6.1.3 Amhil North America
6.1.4 Genpak Corporation
6.1.5 Huhtamaki Americas Inc.
6.1.6 Berry Global Inc.
6.1.7 Ronpak Inc.
6.1.8 Novolex
6.1.9 Plastic Ingenuity Inc.
6.1.10 Tellus Products

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Pactiv Evergreen Inc.
  • Dart Container Corporation
  • Amhil North America
  • Genpak Corporation
  • Huhtamaki Americas Inc.
  • Berry Global Inc.
  • Ronpak Inc.
  • Novolex
  • Plastic Ingenuity Inc.
  • Tellus Products