Canadian Food Retail and Consumer Trends & Value-Added Poultry Products
Value-Added Poultry Products Market Performance
Canadian demographic and market trends would suggest that poultry-based products and value-added foods containing poultry ingredients have performed well and continue to be favourably positioned for growth… let's look at the evidence.
Value-Added Retail Frozen Food Market Performance
Demand for frozen dinners, entrées and meatpies has doubled in the past five years
Key Drivers for Changes
Demographics
- Population growth slow -1.2% a year
- Greying population - double the number of seniors compared to 25 years ago
- Family structure - household size 3.0 people
- Ethnic diversity - Asia the major source of immigrants (more than half of all immigrants in the 1990s)
Greying Population
- Seniors well off financially, well educated, and willing to spend
- Will have time to shop for what they want
- Will be preoccupied with health and product quality
- Will want smaller portions, single packages, easy to open and labels that are easy to read
Cultural Diversity
- The cultural diversity of Canada is becoming an increasingly important force in the marketplace, particularly in urban centres
- Causing shifts in traditional food demand
- Ethnic foods like Pad Thai (a rice noodle based dish) and Shwarmas are gaining in popularity
- Canadian ethnic diversity different from U.S. (less Hispanic influence)
Economic Trends
- Real personal disposable income growth has experienced a slowdown during 1985-2000 but fortunately price inflation has been low
- Dual-income families the norm but single-parent families also prominent… many more women in the work force
Canadian Food Expenditures
- Real spending on food & non-alcoholic beverages has not increased in the 1990s.... about 12% of average Canadian household income
- Spending on food outside the home (restaurants) increasing but lags behind the U.S.
Market Place Behaviour
- People still want value and will price shop
- More people own microwaves than barbeques
- A lack of time to shop and prepare meals
- Increased demand for convenience foods, home delivery, "ingredient solutions," and home meal replacements
Buying Patterns
What's hot...
- Rice, pasta, chicken, fresh fruit & vegetables, bottled water, frozen dinners, cheese, pizza, soy-based products, soft drinks, juices
- More microwavable products
- More convenience, hand-held foods
- More private label products
Retail Store Trends
- Grocery stores are growing in size...up to 50,000 square feet and 40,000 different food & non-food items
- Big stores offer more products, more variety
- More ready-made foods… to compete with fast food take-out food service outlets
- The big supermarkets are locked in a market share battle against the big box stores, and other non-traditional chain stores
Red Meat and Poultry Demand
- Canadians still spend more on meat than on any other food category
- Poultry meats have performed well compared to other meats....per capita consumption of poultry meats greater than pork and right up there with beef
Value-Added Poultry Meats
- Poultry is well positioned for growth… appealing to people from a broad range of cultural backgrounds
- Appeals to health conscious consumers
- Poultry is a highly adaptable food ingredient for both food service and retail applications
- A tremendous amount of product development in boneless, skinless, breaded and marinated chicken products like chicken nuggets
- Product developers have successfully positioned poultry to compete with red meat products.....chicken wieners, chicken burgers, deli products
Poultry Meat as an Effective Ingredient
- Poultry meat is a food ingredient of choice
- Lots of development in dinner and entrée categories to respond to the convenience of ready-made meals using poultry ingredients
- Lots of line extensions, varying package sizes, kids' meals, etc.
- Retail products usually frozen...put up in brightly coloured packaging with lots of graphics
- Packaging is frequently microwavable
Value-Added Products Containing Poultry
- Sales of value-added products such as dinners and entrées containing chicken are growing 30% a year
- Private label value-added poultry products are very prominent... about 48% of total sales are private label compared to 40% for all grocery store retail sales
- Canadian processors are competent manufacturers of value-added products containing poultry
- Such Canadian made products trade in the North American marketplace. Domestic manufacturers are competitive
- Canadian processors have more than 70% of the domestic market for soups, egg rolls and meat pies
- In the large dinner and entree market the U.S. manufacturers have powerful brands which have about a 75% share of the Canadian market
| Products containing chicken | 1995 sales in millions of dollars ($144.7) | 2000 sales in millions of dollars ($238.5) | ||||
|---|---|---|---|---|---|---|
| Canadian Manuifacturer Brands | Private Label | US Manufacturer Brands | Canadian Manuifacturer Brands | Private Label | US Manufacturer Brands | |
| Dinners | 16.60 | 0.03 | 0.04 | 10.40 | 11.40 | 0.01 |
| Entrées | 10.00 | 15.00 | 25.00 | 11.40 | 40.90 | 34.40 |
| Meat Pies | 6.50 | 2.50 | 3.10 | 5.70 | 9.80 | 4.50 |
| Condenses Soups | 37.00 | 4.50 | 0.04 | 43.90 | 8.20 | 0.40 |
| Ready to Serve Soups | 19.00 | 0.20 | 2.50 | 56.90 | 0.70 | 0.57 |
| Egg Rolls/ Spring Rolls | 1.25 | 1.00 | 0.75 | 3.80 | 3.30 | 1.20 |
| Total | 90.35 | 23.23 | 31.43 | 123.10 | 74.30 | 41.08 |
Source: Adapted from ACNielson
| Products containing turkey | 1995 sales in millions of dollars ($23.42) | 2000 sales in millions of dollars ($23.0) | ||||
|---|---|---|---|---|---|---|
| Canadian Manuifacturer Brands | Private Label | US Manufacturer Brands | Canadian Manuifacturer Brands | Private Label | US Manufacturer Brands | |
| Dinners | 10.00 | 0.02 | 0.00 | 10.30 | 0.50 | 0.00 |
| Entrées | 0.80 | 0.50 | 3.00 | 0.10 | 0.00 | 3.00 |
| Meat Pies | 3.60 | 1.40 | 1.60 | 3.00 | 3.00 | 0.00 |
| Condenses Soups | 1.00 | NA | 0.00 | 1.10 | 0.00 | 0.00 |
| Ready to Serve Soups | 1.50 | NA | 0.00 | 1.10 | 0.00 | 0.00 |
| Egg Rolls/ Spring Rolls | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 16.90 | 1.92 | 4.60 | 15.60 | 3.50 | 3.90 |
Dinners and Entrées
- Total retail market all dinners and entrées about $860 million in 2000
- Frozen dinners have grown more slowly than frozen entrées
- Little change in U.S. market share
- Chicken dinners and entrées had sales of $109 million in 2000; turkey dinners and entrées had sales of $15 million
- Sales of private label chicken dinner sales increased from $30 thousand in 1995 to $11.4 million in 2000
- Sales of chicken entrées rose from $15 million to $41 million over the same period
- Entrées is the largest product category and consists of 35% chicken content; future success will likely come from private label products
- Private label turkey dinner sales increased from $20 thousand in 1995 to $500 thousand in 2000.
- Turkey entrées fell from $4.3 million to $4 million over the same period
Pot Pies, Soups, Egg Rolls
- Total retail meat pies of all kinds in 2000 totalled $53 million of which private label about $26 million.
- Chicken and turkey meat pies had retail sales of about $20 million and $6 million respectively in 2000.
- Total retail soup sales (condensed, ready to serve, frozen) were about $370 in 2000, of which chicken soups were worth about $111 million and turkey soups $2.2 million.
- Total retail market for egg rolls of all kinds is about $22 million of which those containing chicken is about $8.3 million.
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| Date Modified: 2005-10-20 | 
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