Food Industry Trends Canada - 2022

市场监测

  • 加拿大
  • 食品

2022年01月20日

The low level of food business failures persists

IT Canada food credit risk 2022

Canadian food & beverages value added output is forecast to grow by about 2.5% in 2022, after a 4.4% increase in 2021 and a 2.0% contraction in 2020. Retailers recorded high sales in 2020 and 2021, but this surge could slow down in this year as consumers return to pre-pandemic habits, spending more for dining and drinking out of home. Main subsectors like beverages, dairy, meat, and fruit and vegetables record robust domestic demand. Additionally, larger players benefit from robust export sales.  

IT Canada food output 2022

We expect that profit margins of food businesses will increase along the value chain in the coming months. High commodity, electricity and fuel prices currently affect food producers and processors, but it seems that they can pass them on to retailers and end-customers. Households’ purchasing power has increased, and consumers are willing to pay higher prices for food. The premium and healthy/organic food segments are expected to record robust growth rates. However, labour shortage and higher wage costs have become an issue for producers and processors, while the food retail segment is facing growing competition among grocery chains and the market expansion US retailer Walmart. Any price wars would mainly affect the margins of smaller retailers. 

The financial situation of most food companies is sound, and high leverage of businesses is not an issue. Banks are generally willing to provide loans to food companies. Payments in the industry take 40 days on average, and payment behaviour has been good over the past couple of years, due to good operating results and ongoing support from the government and banks. We expect that the low level of payment delays and insolvencies seen in 2021 will remain unchanged this year.

Due to the benign credit risk situation and good growth prospects, our underwriting stance is generally open for food & beverages businesses across all segments, in particular for established companies  that are operating for at least 2-3 years. Besides the financial situation of individual businesses, we also assess trading experience, trading levels and bank support.


 
 

相关资料

免责声明

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommendation or advice as to particular transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure that the information contained in any Publication has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in any Publication is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken in reliance on the information in any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.