Market Information Papers
Despite the historical rise in imports to this country, Canadian apparel and textile companies expect that the current global economic slowdown will cause sales growth to slow significantly.
These companies also expect prices of items they produce to increase at a slower pace and their work force to shrink in 2009. This will in turn negatively affect demand for apparel and textiles. As well, tightening credit conditions and falling commodity prices are resulting in companies curtailing planned investments.
This report covers alcoholic beverages, namely beer, wine and distilled spirits, and non-alcoholic beverages including tea and coffee, bottled water, soft drinks, fruit and vegetable juices and alternative beverages such as energy and health drinks. The Canadian non-alcoholic refreshment beverage industry currently generates over $5 billion annually in retail sales. While coffee is the top beverage consumed by Canadians as a whole, statistics show that alcoholic beverages come out on top for the population segment of those 15 years and older. Imports of all alcoholic beverages increased between 2006 and 2010 to $3.1 billion. Wine imports were the largest at $1.7 billion, followed by imports of spirits ($685 million), and beer ($628 million).
This essential tool for exporters is an update of the 2008 handbook. It provides an overview of the Canadian market for goods and services, including a look at the economy, consumer and regional markets, and trends. The Canadian trading system is outlined with information and links to trade agreements, taxes, tariffs, import documentation, and penalties and remedies related to imports. Product standards, laws, and regulations that protect the Canadian consumer are outlined. The handbook also highlights what to consider in marketing and sales strategies, product quality, packaging, labelling, and pricing.
Tips on finding and dealing with a buyer through various distribution channels are also provided.
In 2009, fishery and seafood imports reached a five year high of $2.2 billion but fell back by 4% in the first six months of 2010. Major sources in 2009 were the United States ($776 million); Thailand ($353 million); and China ($347 million). In the first six months of 2010, TFO Canada client countries were among the most successful at increasing sales to this country than in the same period in 2009. In 2009, the largest value of imports was of crustaceans which, at $520 million, exceeded imports of $493 million in the previous year. Imports in 2009 of fresh/chilled/frozen fish fillets ($471 million), and prepared/preserved fish, caviar and caviar substitutes ($335 million) also exceeded the previous year’s imports. However, fresh/chilled fish excluding fish fillets declined from $211 million in 2008 to $203 million in 2009.
According to Statistics Canada, retail sales of footwear reached their highest levels in five years at $5.3 billion in 2010; just over one-third of this was satisfied by imports. Nearly 54% of these sales were through shoe stores with the rest through general merchandise stores and other retailers. A total of $1.9 billion worth of footwear was sold by large retailers in that year. Like retail sales, imports of footwear reached their highest level in 2010 at $1.92 billion. However, imports rose by 16.8% in the first six months of 2011, significantly higher than the 6.4% increase in retail sales.
Canadian imports of hardware dropped from $1.6 billion in 2008 to $1.4 billion in 2009, while imports of hand tools dropped even more dramatically, from $2.6 billion to $2 billion over the same period. However, there are signs that both markets are improving, with imports of hardware rising by 6.3% and those of hand tools by 2.4% in the first five months of 2010 compared to the same period a year ago. Since consumers are more conscious about security and energy conservation, sales of related devices for the home such as lights, locks, timers, alarms and lighting remain high. Energy audits, soon to be a requirement for home sales, will boost demand for these products.
After reaching a high of $412 million in 2007, Canada’s imports of hides and skins dropped to their lowest levels in five years to $131 million as manufacturers cut back on their plans in the face of daunting economic prospects. Canada is a net importer of the products covered in this report except for raw skins/hides and goat/kid leather where exports exceeded imports by approximately $277 million and $0.07 million respectively in 2008. As work forces shrink and consumers react to the global recession, both demand and prices for leather goods are expected to be negatively impacted. Reflecting this decreased demand as well as tightening credit conditions and falling commodity prices, the industry contributed the least amount in five years ($175 million) to Canada’s GDP in 2008.
To be legally sold in Canada, all natural health products must have a product licence, and the Canadian sites that manufacture, package, label and import these products must have site licences. To get product and site licences, specific labelling and packaging requirements must be met, good manufacturing practices must be followed, and proper safety and efficacy evidence must be provided. According to Consumer Health Products Canada, the natural health products (NHP) market in Canada is currently valued at $4.7 billion, a significant increase from $2.5 billion in 2005. As well, a 2010 Ipsos-Reid survey shows that 73% of Canadians regularly take NHPs such as vitamins and minerals, herbal products, and homeopathic medicines.
Over the past decade, services – including manufacturing and agriculture, have been the fastest growing sector of the economy. Services such as telecommunications, financial and transport services provide the infrastructure and specialized inputs for all economic activities, as well as the health, education and cultural supports for quality of life.
This report describes the dynamic service environment in Canada which includes a wide and complex variety of transactions that are generally intangible in nature. In Canada, the service sector is an important contributor to the economy. According to Industry Canada, in 2005, services accounted for 68% of GDP, and employed 75% of Canada’s work force.

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