Canada's Bakery and Tortilla Manufacturing Industry

The Canadian bakery and tortilla product manufacturing industry, North American Industry Classification System (NAICS) 3118, comprises establishments that are primarily engaged in manufacturing baked goods. Establishments primarily engaged in manufacturing bakery products for retail sale but not for immediate consumption are included.

Significance

Canada's bakery and tortilla manufacturing sector is the second largest employer among the food and beverage sectors, the largest being meat product manufacturing. Changing demands from health conscious consumers has led to the resurgence of artisanal, unpackaged and fresh items. Wider product ranges have also been developed with specialty foods such as gluten-free options, flat breads, whole grain, added fiber, and ethnically diverse offerings.

Structure

In 2012, 2,143 establishments were operating in Canada with the majority in Ontario (861), Quebec (583) and British Columbia (303). In the same year, the industry generated revenues of $8.0 billion and employed over 1,100 people. Canada is a net exporter of bakery and tortilla products, exporting $2.3 billion and importing $1.6 billion in 2014. The United States accounts for 94% of exports and the majority of imports come from the United States (72%), followed by Italy, Mexico, and the United Kingdom.

Canadian bakery and tortilla industry imports, exports and sales of goods manufactured (2012)
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The following figures are in millions of Canadian dollars.

Canadian bakery and tortilla industry imports, exports and sales of goods manufactured (2012)
Imports 1,337.60
Exports 1,876.00
Domestic shipments 6,127.20
Canadian market (imports and domestic shipments) 7,464.80
Sales of goods manufactured (exports and domestic shipments) 8,003.20

Source: Statistics Canada

Performance

Between 2004 and 2012, sales of goods manufactured by the Canadian bakery and tortilla industry increased 39.3% from $5.7 billion to just over $8 billion. Exports of bakery and tortilla products grew at an average annual rate of 4.1% over the same period while imports experienced an average annual growth rate of 6.0%. Imports as a percentage of the domestic market remained relatively unchanged over the period, fluctuating between 16 and 18 percent. From 2004 to 2012, direct employment grew from 35,880 employees to 38,743 employees.

Canadian Bakery and Tortilla Manufacturing Industry Sales of Goods Manufactured and Employment (2004-2012)
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Canadian Bakery and Tortilla Manufacturing Industry Sales of Goods Manufactured and Employment (2004-2012)
2004 2005 2006 2007 2008 2009 2010 2011 2012
Sales of goods manufactured (in millions of Canadian dollars) 5,745.71 5,881.19 5,904.90 6,421.57 7,011.61 7,424.08 7,485.60 7,666.77 8,003.22
Employment (number of people) 35,880 36,552 35,603 34,793 36,075 37,521 39,325 37,148 38,743

Source: Statistics Canada

Note: The manufacturing statistics cited in this profile are taken from Statistics Canada's Annual Survey of Manufactures and Logging, which lags behind the current date by at least 2 years.

Bakeries and Tortilla Manufacturing, 2004-2013

Table showing principal statistics in the canadian bakery and tortilla manufacturing industry for 2004-2012
Principal statistics [a] 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012/11 AAG [b]
2007-12
Employment total (number of employees) 35,880 36,552 35,603 34,793 36,075 37,521 39,325 37,148 38,743 4.3% 2.2%
Employment – production (number of employees) 28,592 28,382 26,442 25,476 26,243 27,492 29,147 26,964 28,088 4.2% 2.0%
Employment - administration (number of employees) 7,288 8,170 9,161 9,317 9,832 10,029 10,178 10,184 10,655 4.6% 2.7%
Total revenue (millions $) 6,280 6,440 6,513 7,200 7,959 8,343 8,246 8,447 8,834 4.6% 4.2%
Revenue from goods manufactured (millions $) 5,746 5,881 5,905 6,422 7,012 7,424 7,486 7,667 8,003 4.4% 4.5%
Value-added, goods manufactured (millions $) 2,959 2,921 2,965 3,315 3,536 3,787 3,875 4,068 4,118 1.2% 4.4%
Value-added/worker, goods manufactured (millions $) 0.10 0.10 0.11 0.13 0.13 0.14 0.13 0.15 0.15 −2.8% 2.4%
Value-added as % of revenue from goods manufactured 51.5% 49.7% 50.2% 51.6% 50.4% 51.0% 51.8% 53.1% 51.5%
Domestic market (millions $) 5,224 5,343 5,361 5,860 6,532 6,986 6,945 7,157 7,465 4.3% 5.0%
Domestic penetration 84.0% 84.4% 83.7% 84.0% 82.9% 82.7% 83.4% 82.3% 82.1%

Note:

  • [a] Statistics Canada, Annual survey of manufactures and logging (ASML) (note there is a one year lag in ASML figures)
  • [b] Average annual growth rate
Table showing global trade statistics in the canadian bakery and tortilla manufacturing industry for 2004-2013
Global trade statistics [a] 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013/12 AAG [b]
2008-13
Exports (millions $) 1,358.7 1,369.2 1,416.9 1,499.0 1,598.0 1,646.7 1,690.9 1,775.3 1,876.0 2,033.2 8.4% 4.9%
Exports as % of revenue from goods manufactured 23.6% 23.3% 24.0% 23.3% 22.8% 22.2% 22.6% 23.2% 23.4%
Imports (millions $) 837.0 831.5 872.7 937.7 1,118.7 1,208.3 1,150.4 1,265.7 1,337.6 1,475.1 10.3% 5.7%
Imports as % of domestic market 16.0% 15.6% 16.3% 16.0% 17.1% 17.3% 16.6% 17.7% 17.9%
Balance of trade (millions $) 521.8 537.7 544.2 561.3 479.3 438.4 540.5 509.6 538.4 558.1 3.7% 3.1%

Note:

  • [a] Industry Canada trade data online (Statistics Canada data)
  • [b] Average annual growth rate
Table showing trade statistics with the United States in the canadian bakery and tortilla manufacturing industry for 2004-2013
Trade statistics with the United States [a] 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013/12 AAG [b]
2008-13
Exports (millions $) 1,323.9 1,338.1 1,377.5 1,442.6 1,520.9 1,572.6 1,611.2 1,678.8 1,767.2 1,917.8 8.5% 4.7%
Imports (millions $) 619.2 618.2 646.7 688.0 840.6 919.4 861.7 950.1 993.1 1,083.5 9.1% 5.2%
Balance of trade (millions $) 704.6 719.9 730.8 754.6 680.3 653.2 749.5 728.7 774.1 834.3 7.8% 4.2%

Note:

  • [a] Industry Canada trade data online (Statistics Canada data)
  • [b] Average annual growth rate

Contact us

For more information about Canada's food industry, read Significance of the Food and Beverage Processing Industry in Canada or contact the Sector Development and Analysis Directorate at sdad-ddas@agr.gc.ca.

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