Statistics Canada’s latest Survey on Innovation in the Food Processing Industry revealed that 58.2 per cent of businesses in the food manufacturing sub-sector invested up to 5 per cent of their total expenditures on innovation activities in the last three fiscal years (2021, 2022 and 2023). This includes product, process, organizational and/or marketing innovation.
However, the survey also found that the proportion of businesses introducing at least one innovation decreased from 72.1 per cent in 2016 to 2018 to 67.7 per cent in 2021 to 2023. This decline was seen across all four types of innovation, with process innovation experiencing the largest decrease, from 48.4 per cent to 38.5 per cent.
The likelihood of businesses introducing at least one innovation was found to increase with their food production sales. While nearly three in five businesses (59.2 per cent) with less than $1 million in sales introduced at least one innovation, over three in four businesses (76.5 per cent) with more than $100 million in sales did the same.
In terms of regional differences, businesses in Quebec were the most likely to have innovated from 2021 to 2023, with 72.7 per cent reporting at least one innovation. This was largely driven by organizational (46.3 per cent) and process (43.3 per cent) innovations. On the other hand, businesses in Ontario were the most likely to have introduced product innovations (39.8 per cent), while those in British Columbia and the territories were more likely to have introduced marketing innovations (50 per cent).
Looking ahead, the survey found that 60.5 per cent of businesses in the food manufacturing sub-sector have plans to innovate over the next three years, with the main goals being to improve efficiencies (69.8 per cent), reduce costs (69.2 per cent) and address labour market challenges (40.1 per cent).
This survey provides valuable insights into the state of innovation in the food processing industry in Canada. The decline in the proportion of businesses introducing innovations may be a cause for concern, as innovation is crucial for businesses to remain competitive and adapt to changing market conditions. However, the fact that a majority of businesses still have plans to innovate in the near future is a positive sign for the industry’s growth and development.