Canada’s retail market is mature, consolidated and full of demand for produce, according to a USDA analysis.
Canada’s market-leading retailers — three traditional grocers and two general merchandisers — hold nearly 65% of grocery market share, according to the report.
Top 5 Grocery Stores in Canada by Market Share
The USDA Retail Foods Annual Report on Canada showed the retail grocery market share as follows:
- Loblaws: 17%
- Costco: 15%
- Sobeys: 14%
- Walmart: 13%
- Metro: 6%
The remainder of the market is represented by smaller regional retail chains, including 6,900 independents and 27,000 small and independent convenience stores across the country, the report said.
Ontario, Quebec and British Columbia represent 75% of Canada’s retail market and are the provinces in which most of the convenience, drug, grocery and mass merchandise stores are located, the report said.
According to the report, the Canadian food market displays both demand for low-priced quality foods and for premium and specialty food items.
U.S.-Canada Agricultural Trade Relations
In 2024, top U.S. consumer-oriented agricultural exports to Canada were bakery goods, cereals and pasta ($2.8 billion), soups and other prepared foods ($2 billion), fresh vegetables ($1.8 billion).
About 90% of Canada’s nearly 37 million consumers live within 100 miles of the U.S. border.
“Over 80% of Canadians live in the country’s 15 largest cities, making urban centers the nuclei of retail activity,” the report said. “As larger grocery banners focus their efforts on population-dense areas, smaller communities are serviced by smaller format retailers as well as independent and specialty retailers.”
In 2024, Canada was the No. 2 market for U.S. agricultural exports at $29.5 billion. Total trade between the US and Canada was $70.5 billion in 2024.
The report said that retail trends that have emerged over the last two years include:
- Increased economic nationalism.
- Marketing to a value-conscious, healthier consumer.
- An increased emphasis on sustainability, particularly in eco-friendly packaging.
- Adoption of the Grocery Code of Conduct to improve retail transparency.
- The growing importance of ecosystems and partnerships.
E-commerce is a growing trend, the report said. Both Loblaw and Sobeys have taken significant steps in amplifying their digital presence. Loblaw continued to increase its e-commerce offerings and expand its click-and-collect online grocery shopping service in different store brands.
Nova Scotia-based Sobeys launched an online grocery business, Voilà — an automated warehouse as its fulfillment center, in partnership with UK-based e-commerce company Ocado — in June 2020, rolled it out across the Greater Toronto Area in subsequent weeks and then expanded the service to Ottawa and major cities across Quebec.
Consumer demand and established distribution channels with U.S. suppliers continue to fuel produce sales growth, with Canadians spending 21% more on fruits and vegetables than U.S. consumers, according to the report.
