Food and beverage industry faces mixed outlook in 2025, FCC report says

Canada’s food and beverage manufacturers face a year of uncertainty, with opportunities tempered by economic challenges, trade disruptions and shifting consumer habits, according to the latest FCC Food and Beverage Report.

FCC Economics forecasts a modest 0.6 per cent increase in food and beverage sales to $168.8 billion in 2025, but a 1.5 per cent decline in sales volume, reflecting ongoing adjustments to beverage manufacturing. Profit margins are expected to improve slightly, though they will remain below pre-2019 levels, with variation across sub-sectors.

“The food and beverage industry faces ongoing pressures from economic challenges and trade disruptions,” said Amanda Norris, senior economist at FCC. “While sales growth is projected to increase slightly, manufacturers will need to carefully navigate rising costs and shifting consumer habits to maintain profitability.”

For 2025, FCC Economics forecasts a further decline in beverage sales of -2.5 per cent and -2.6 per cent in volumes. The anticipated decline is driven by a continued shift away from alcoholic beverages, particularly beer, and a slight slowdown in non-alcoholic beverage sales after four years of strong growth.