Greater awareness of the health benefits of vegetables has driven demand.
New York, NY (PRWEB) March 06, 2015
The Vegetable Farming industry has experienced steady growth over the five years to 2015, mainly because vegetables are a staple in the average Canadian diet. Demand for industry products has been supported by a growing awareness of the health benefits associated with vegetable consumption, as well as expanding per capita disposable income. “Demand from food-service industries has also boosted the industry's growth,” according to IBISWorld Industry Analyst Antal Neville. Consequently, industry revenue is estimated to increase at an annualized rate of 1.4% to total $3.7 billion over the five years to 2015, including a 0.7% increase in 2015.
Over the past five years, imports have continued to satisfy a significant share of domestic demand for fresh produce, growing at an average rate of 3.1% per year to $2.9 billion in 2015. “Imported vegetables are usually priced lower than domestically grown ones, making them attractive to downstream supermarkets and food-service companies,” says Neville. Over the five years to 2020, imports of fresh vegetables are forecast to grow at an annual rate of 4.8%.
Despite recent challenges, Canadians' appetite for vegetable products is here to stay. Over the five years to 2020, industry revenue will continue to grow. Vegetable consumption has plenty of room to grow to meet domestic dietary standards. IBISWorld expects the joint efforts of industry associations and the Canadian government to facilitate industry recovery by promoting healthy eating habits through marketing vegetable consumption.
As consolidation carries on, economies of scale will be an increasingly important factor for farmers remaining in the industry. Downstream wholesale bypass will also put expanding pressure on the farming sector as supermarkets continue to source directly from producers. Farmers who cannot meet the high-quality standards for fresh produce at shrinking prices will be squeezed out of vegetable farming. Consequently, the total number of industry establishments is expected to fall over the next five years.
For more information, visit IBISWorld’s Vegetable Farming in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments that primarily grow vegetables and melons. Establishments that primarily produce vegetable and melon seeds and vegetable and melon bedding plants are also included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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