Food and beverage sales to fall in 2024; processor margins to improve [Video]

Farm Credit Canada is predicting Canadian food and beverage sales will fall slightly this year as consumers manage tight budgets.

Gross margins, however, should increase as the effects of falling commodity prices work their way through the supply chain, the farm lender said in an April 9 news release.

In its Food and Beverage Report 2024, FCC said that Canadians spent less than average on food and beverages in 2023. People shifted shopping habits to purchase more sale items and cheaper brands, and even cut back on the volume of food purchased.

“While changing shopping habits may pose challenges, they also present opportunities for food and beverage manufacturers,” said FCC chief economist J.P. Gervais in the news release.

“Taste remains the top consideration for consumers, but price sensitivity has increased, leading processors to innovate …