New MNP Food and Beverage Business Outlook examines where Canada's agri-food advantages are translating into growth and where opportunity remains
CALGARY, AB, Oct. 13, 2026 /CNW/ -- Canada has the resources, agricultural capacity, and global reputation to be one of the world's strongest food-producing nations. But that strength isn't reflected in what Canadians experience at the grocery store. Food costs remain high, while businesses that produce and manufacture our food are contending with tariffs, trade uncertainty, and rising operational costs. Those pressures don't stop at the business but move through the food system and ultimately reach the consumer.
Released ahead of World Food Day, the MNP Food and Beverage Business Outlook: Momentum Built. Advantage Ahead. pairs global benchmarking of Canada's position among the G20 with perspectives from MNP's food and beverage leaders to examine what's driving business performance and the implications on consumers.
Ranking seventh overall among the countries assessed, Canada has the fundamentals required to compete globally. The opportunity lies in commercialization, processing capacity, digital adoption, and access to new markets, allowing businesses to capture more value from what Canada already produces.
"There's a lot that Canada does really well when it comes to food, but those advantages are not sustaining small- and mid-sized businesses. They're not having an easy time right now," says Matt MacDonald, National Leader, Food & Beverage Processing at MNP. "Manufacturers are trying to stay nimble while costs are rising, trade is unpredictable and consumers are changing what they buy. Those pressures eventually make their way to the shelf. The opportunity is to look at where we can do things differently, adapt, and get more value out of what we already produce here in Canada."
Affordability is changing how consumers define value
With The Canada Food Price Report predicting a 4–6 percent increase in food prices in 2026, the increasing inflation and tariff impacts are only intensifying the affordability pressures Canadians continue to experience.
For businesses, higher costs for ingredients, labour, transportation, and packaging are influencing sizes, product mix, and margins -- beyond just the price of the product.
At the same time, consumers are looking closely at quality, nutrition, convenience and transparency. The advantage for businesses is to understand which attributes customers value and where they're willing to pay for them.
That can mean strengthening the value proposition behind premium products, finding efficiencies that keep value-oriented products affordable or using customer insights to identify where demand is moving next.
The cost of standing still in a tariff-driven market
Canada is a significant global agri-food exporter, recording a $24.3 billion agri-food trade surplus. But ongoing tariff uncertainty and shifting trade relationships create new pressures for business that rely heavily on a single market.
The Outlook found 65 percent of exporters are planning market expansion, while U.S. exports declined 3.8 percent and non-U.S. exports increased 11.2 percent.
Food and beverage businesses can feel the impacts of the tariffs across the supply chain, from agricultural inputs and ingredients to packaging, equipment and the cost of getting products to market. Those implications ripple across margins and investment decisions, which can create higher prices.
But business diversification can extend beyond geography. New customers, suppliers, revenue streams, private-label arrangements and strategic partnerships can all provide different paths to growth.
Expanding domestic processing and manufacturing capacity may also create opportunities to retain more gains in Canada before products are exported.
Harnessing Canada's innovation potential
Innovation is one of Canada's stronger areas. Nearly $515 million was invested in Canadian agri-food technology startups in the first half of 2025. However, approximately 75 percent of agricultural research and development funding comes from public sources, while private investment accounts for less than 25 percent.
The findings point to an important next stage -- turning innovation into commercial outcomes. Building the operational capacity to adopt technology, demonstrate returns, and scale successful ideas can be as important as developing the idea itself.
Digital adoption highlights the gap: tools such as AI, automation, and advanced forecasting are increasingly accessible but adoption among small- and mid-sized businesses remains uneven.
Targeted investments in areas such as inventory management, forecasting, production, and automation may offer businesses practical ways to improve productivity while building capability for future growth.
Turning Canada's advantages into business opportunity
Canada's food and beverage sector enters its next stage of growth with significant advantages. The opportunity is to turn those fundamentals into stronger businesses through greater commercialization, processing capacity, market diversification, and investment -- a path will look different for every business depending on their products, customers, and ambitions.
The MNP Food and Beverage Business Outlook provides a benchmark for understanding Canada's position and practical considerations for businesses deciding where to invest, where to compete, and where their next opportunity may come from.
Read the full MNP Food and Beverage Business Outlook: Momentum Built. Advantage Ahead., here.
About us
National in scope and local in focus, MNP provides client-focused accounting, consulting, tax, and digital services in more than 150 communities from coast to coast. Founded in Brandon, Manitoba in 1958, we are proud to be born and raised in Canada and committed to the success of Canadian individuals, businesses, and organizations. Our advisors deliver personalized strategies and made-in-Canada solutions to help you reach your full potential -- wherever business takes you.
SOURCE MNP
Media contact: Matt MacDonald, National Leader, Food and Beverage Processing, [email protected]
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