As consumer preferences shift and reshape the food and beverage industry, Export Development Canada’s agri-food lead, Ashley Kanary, shares his insights on the top trends to watch for in 2025. From the resurgence of baking at home to the rise of collagen-infused drinks and protein-packed snacks, Kanary delves into the evolving landscape.
“Innovative snack products are set to make a significant impact,” says the EDC director, who predicts a boom in this area, alongside other key trends, like global tastes and clean ingredients.
With more than 40 years’ experience in the grocery business, Kanary meets regularly with mid-market companies in the food, grocery and private label business in his role at EDC. He also attends numerous trade shows each year to promote EDC and to learn firsthand about areas of growth and innovation in the business. The agri-food sector in Canada, worth about $75 billion in exports annually, is a key focus for EDC.
A cornerstone of Canada’s economy, the agri-food sector contributes significantly to both domestic and international markets. The Canadian government has set ambitious targets for the agri-food industry, aiming for $85 billion in agriculture, agri-food and seafood exports by the end of 2025. This growth is driven by Canada’s reputation as a supplier of safe, high-quality products and the increasing demand for protein and other agri-food products.
Here are Kanary’s Top 7 food trend predictions for 2025:
1. Back to basics
The biggest trend Kanary is currently seeing is a return to a simpler, more natural way of cooking and eating. People are getting back into the kitchen in a meaningful way, seeking both health and convenience.
Food delivery companies, like Goodfood, are incorporating back-to-basic elements into meals that you can easily warm up, avoiding fast-food and overly processed options. This trend is particularly popular among younger people who want healthy food delivered to their doorsteps.
Homecooked meals tend to be healthier and more nutritious, offering convenience and the ability to customize recipes. Nostalgia and comfort also play a part is this trend.
“The retro or old-fashioned way of preparing your food is huge. The opportunity is for Canadian companies to launch back-to-basic products, and EDC can help companies scale up their business by expanding their manufacturing facilities. It’s also about convenience, and we’re seeing consumers gravitate toward food delivery services that offer healthy meals and avoid overly processed foods,” he says.
2. Clean ingredients
Many consumers want natural, healthy food that tastes fresh and is less processed and free from artificial preservatives, colour and flavour. They seek value for their money, simple labelling and nutritious ingredients. With rising food intolerances and dietary restrictions, people are increasingly avoiding certain ingredients due to health concerns.
“People are reading ingredient panels on the products and don’t want to buy items with ingredients they can’t pronounce. The less processing, the better—this is what consumers are migrating towards,” Kanary says, adding, “People are becoming wiser to the food that isn’t great for them. Videos on Instagram, TikTok and YouTube are opening up an entire world of understanding about how food is manufactured and what’s in it, which is really important. Companies need to simplify all ingredients on the label—if they don’t, their sales will suffer.”
Kanary says Canadian companies such as Victoria, BC-based Save Da Sea are on the cutting edge of this trend by producing plant-based seafood with only nine ingredients and minimal processing.
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3. Global tastes in food
A prominent trend Kanary refers to as “rebelling against the norm” involves consumers seeking more adventurous culinary experiences, particularly Indian and Asian cuisines. This trend, partly driven by the pandemic, reflects a desire to sample diverse tastes from around the world.
People are looking for unique dining experiences such as popup restaurants, food festivals and fusion cuisine and blending traditional and contemporary dishes. This curiosity extends to home cooking, with more people experimenting with exotic ingredients and recipes.
For Canadian agri-food companies and exporters, this trend presents a significant opportunity. By introducing diverse, high-quality international ingredients to the Canadian market, businesses can meet the growing demand for global flavours. Canadian food brands can also innovate by creating fusion products that blend local and international tastes, appealing to adventurous consumers. Examples of fusion products include Korean barbecue beef quesadillas, sushi burritos (sushirritos) and Bánh Mì sandwiches. Exporters can also capitalize on this trend by promoting Canadian products abroad, highlighting the country’s multicultural culinary landscape.
“International foods used to be found in their own section, but they’re becoming more mainstream and are spread throughout grocery stores now. There was a time when there were separate Chinese, Greek and Indian sections, but now, the world of flavours is integrated into your shopping experience,” Kanary says.
Montreal’s naturSource, a family-owned and operated company, known for its tamarind-flavoured almonds and internationally flavoured salad toppers, exemplifies this trend. They’re looking to expand into the Indo-Pacific and recently visited Japan to meet with Costco and attended EDC’s new office opening in Tokyo.
Demand for halal products is also red hot, Kanary says, offering a new global pathway for Canadian businesses looking to diversify. “With people driving about $2.2 trillion a year in halal sales, you can't ignore this consumer anymore.”
To find out more, read our in-depth article on halal food, its key markets and the consumer trends shaping this industry.
Kanary advises that understanding a new market is the key to success. “At EDC, our agri-food team in Canada and local EDC representatives worldwide can help you navigate new markets.”
EDC senior economist Prince Owusu says when Canadian companies are contemplating diversifying to a new market, the Asia-Pacific region is worth considering, with its strong economies and growing population. According to the Brookings Institution, the region will continue to dominate the global middle class, making up 65% of the global share by 2030, compared to 60% expected this year.
“The young and vibrant middle class in this region, seeking both healthy and convenient nutrition, presents a winning case for Canadian exporters to invest heavily in capturing this market with our quality food products. Most countries in the region rank mid-level in global food security, meaning their domestic production can’t meet all nutritional requirements. Meanwhile, Canada, a powerhouse of quality food products, has an opportunity to deepen its global reach, especially as competitors in Ukraine and Russia face production limitations due to the ongoing conflict,” Owusu says.
4. Doing more with less
Economic challenges are driving consumers to seek budget-friendly options, leading to two simultaneous trends:
1. Private label products: People are buying more private-label products at grocery stores to save money. Private label sales are expected to grow significantly this year, outpacing that of branded products globally, says Kanary.
2. Gardening for beginners. With rising produce prices due to high inflation, people are starting their own gardens, growing items, like tomatoes and basil, and are buying from local farmers and roadside stands. This trend is about doing more with less, and with many consumers still working from home a few days a week, they have more time for such activities.
Kanary and a team from EDC recently attended the PLMA (Private Label Manufacturers Association) trade show, a significant consumer packaged goods event in North America. The annual private label show in Chicago welcomes 1,800 exhibitors from 60 countries and tens of thousands of different products from various categories, including food, beverages and beauty products. The EDC team interacted with 150 Canadian exhibitors and conducted 80 B2B (business-to-business) meetings with eight grocery chains in a 36-hour period.
“It’s basically the Super Bowl of private label events. This allows EDC to show Canadian companies that we offer unique services such as our Business Connections arm and International Business Advisory services. We can introduce them to major retailers, like Fresh Market and ALDI, which is very valuable.”
5. Baking from scratch
While the at-home baking trend and sourdough resurgence began during the pandemic, Kanary says it’s now evolved into a movement, noting that the bakery industry is booming in Canada. With health and nutrition becoming increasingly important for consumers and convenience being a key driver, retail sales of home-baking products are expected to rise through the next few years.
“The trend has evolved into a movement where people are baking from scratch. The bakery sections in stores are exploding, offering a diverse range of products, like flatbreads and artisanal crackers. You won’t just find French loaves or white bread at your local bakery anymore; there are elaborate cakes, bagels, multigrain breads, focaccia and other interesting items that we love to eat.”
Inspired by TikTok videos and other online content, people are realizing that baking from scratch is easy, cost-effective and enjoyable. For example, making pancakes at home requires just three ingredients, which many find surprisingly simple and much cheaper than buying pre-made products.
EDC’s Business Connections team is working to introduce quality Canadian bakery manufacturers to opportunities abroad in international markets in 2025 and for the first time, Kanary says an EDC team will attend a bakery show in June in New Orleans at the IDDBA (International Dairy Deli Bakery Association).
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6. Value-added and hydrating drink beverages
Canadians no longer choose beverages just to quench their thirst. Kanary highlights that this trend is all about supporting health and nutrition by using beverages to deliver functional benefits. The value-added beverage market, including collagen-infused protein drinks, plant-based beverages and hydrating water enhanced with vitamins, has seen explosive growth in the past few years. According to the International Market Analysis Research and Consulting Group, global sales in this sector are expected to reach US$208 billion by 2028. Even Canadian craft brewers are tapping into this trend by producing non-alcoholic alternatives, including seltzers and sodas.
“This is about added benefits versus something like Coke. It’s impossible to ignore this trend at food and beverage shows. You’ll see popsicles with electrolytes, sparkling coconut water and water protein and electrolytes.”
Kanary says EDC is currently working with Revolution Nutrition, a Quebec-based company that produces Splash, a collagen-infused protein drink, and has introduced them into South Korea. This type of product appeals to consumers in certain parts of the world that place high value on health, wellness and beauty.
“While it may not be as prevalent with Canadian consumers, it is when you export abroad to places, like Korea and Japan. Their consumer base is looking for health and wellness items and gravitates towards products that have collagen, which are better for your skin. The global connectivity of the internet is really driving all of these food and beverage trends.”
7. Compostability
From a composting standpoint, grocery chains are demanding compostable packaging in the wrappers themselves, as opposed to single-use plastics. But the hurdle for the entire grocery industry is the product code and the off-code dates.
“When you move to fully compostable packaging, which you can rapidly throw into your garden and it disappears, its shelf-life isn’t as long. When the plastic wrap might be good for a year, compostable packaging might last for six months.”
Kanary says this is an area that EDC is prepared to support. “Where EDC can come in is by helping to finance companies looking to scale up. We’re prepared to lean in from an innovation standpoint because one of our core pillars is food innovation. There’s an appetite for us to back Canadian companies making compostable packaging.”
Rootree, a mid-market, Burlington, ON-based company, is an example of a business that has developed compostable packaging. This innovation is crucial for companies aiming to succeed and expand, as single-use plastics will eventually be phased out.
“If you want to do business with premium grocery chains in the world, you should have this initiative in your plans,” Kanary advises.
He also emphasizes the importance of sustainability in attracting international markets. “Canadian companies that invest in compostable packaging not only meet domestic demands, but also position themselves favourably in global markets where sustainability is a key concern.”
At EDC, we leverage our relationships with global retailers to create export opportunities for Canadian food and beverage companies. Contact EDC to learn how we can connect you with your next international market.
Micro trends worth watching
Crunchy snacks—from granola and flavoured nuts to roasted chickpeas, crispy seaweed, almond flour crackers and umami-flavoured treats—are also gaining popularity. These contemporary snacks are part of evolving trends that we’re closely monitoring, says Kanary. They reflect the growing consumer interest in health-conscious and flavourful options that cater to diverse dietary needs and preferences.
Umami, which means savoury or meaty flavour in Japanese, is one of the five basic tastes, alongside sweet, sour, salty and bitter. It’s characterized by the presence of glutamates and nucleotides in foods such as mushrooms, cheese and soya sauce.
“Mushrooms are the driving force behind umami when it comes to flavouring, which is really interesting. However, I’d classify all of this as a micro trend because it hasn’t exploded yet. There are tiny pockets all over the world of people saying, ‘I love these things,’ and at EDC our goal is to translate this trend into tangible dollars for the Canadian exporter,” Kanary says.
EDC offers a range of services to help Canadian businesses grow, especially in the agri-food sector. Here are six ways EDC can support growth:
1. Financial solutions: EDC provides financing options such as loans, guarantees and insurance to help businesses manage cash flow, invest in new projects and protect against risks.
2. Market knowledge: EDC offers valuable insights into global markets, helping businesses understand trends, economic insights, regulations and opportunities in different regions.
3. Business Connections: Through its extensive network, EDC connects Canadian companies with potential international buyers, partners and distributors, facilitating entry into new markets.
4. Advisory services: EDC’s International Business Advisory services offer expert advice on export strategies, market entry and risk management, helping businesses navigate the complexities of international trade.
5. Trade shows and missions: EDC organizes and participates in trade shows and missions, providing businesses with opportunities to showcase their products, meet potential clients and learn about industry innovations.
6. Support for innovation: EDC supports businesses in developing innovative products and services that meet global demand, helping them stay competitive in the international market.
By leveraging these services, Canadian businesses can expand their reach, increase their competitiveness and achieve sustainable growth in the global marketplace.