Snacks in Canada

Snacks in 2025: The big picture

In 2025, retail value growth for snacks in Canada is set to remain positive, however, volume growth will remain subdued compared to the review period. These results will be due to several key factors. Population growth has slowed significantly, returning to around 1% after peaking near 3% in 2022 and 2023, thereby limiting the natural expansion of consumer demand. While inflation has eased in late 2024 and early 2025, overall price levels remain high, continuing to impact household budgets. Additionally, ongoing trade tensions between Canada and the United States have contributed to rising costs across the supply chain, with new tariffs on goods further exacerbating pricing pressures. Despite these challenges, value sales are expected to grow, driven by premiumisation in select categories such as chocolate confectionery, sweet snacks, and certain savoury snacks,. In addition, the continued strength of the health and wellness trend will further support sales, driving demand for higher-value, better-for-you products.

Key trends in 2025

The health and wellness trend is increasingly becoming the key focus of new product innovations in snacks. Protein-rich claims have become prevalent, expanding beyond traditional formats into less expected categories such as pretzels and ice cream. At the same time, growing consumer aversion to sugar continues to weigh on categories such as sweet biscuits, fruit snacks, gum, sugar confectionery, and ice cream. The broader snacking trend, characterised by a rise in snacking occasions, the blurring of lines between meals and snacks, and innovations that promote shareability, is expected to intensify further, providing sustained momentum for value growth. Savoury snacks remains the largest category in 2025, with value growth rising. In addition, snack bars are well positioned to benefit from the snacking trend, combining convenience with health and wellness attributes, continuing to attract innovation and consumer interest.

Competitive Landscape

Frito-Lay Canada, Nestlé Canada Inc and Cadbury Adams Canada Inc are the leading players in snacks in Canada in 2025. Frito-Lay Canada is set to strengthen its leadership, improving its share through strong brand offerings such as Lay’s and Doritos. The company has remained highly active in new product development, bringing innovation and excitement across several snack categories. Notably, its Lay’s Flavours From India potato chips, stated to be Made in Canada, but inspired by India, has introduced bold new flavours such as Hot n’ Sweet Chilli and Tomato Tango, inspired by popular South Asian tastes. The company also continues to invest heavily in advertising and marketing, including high-profile campaigns for its Doritos brand, such as its Super Bowl initiative featuring Canadian celebrities Gerry Dee and Amrit Kaur, marking the launch of its first Canadian-made Super Bowl advertisements.

Channel developments

Supermarkets remain the leading distribution channel for snacks in Canada in 2025 in terms of value share; however, its share is set to decline over the year. This shift is largely attributed to changing consumer behaviour amid ongoing economic challenges, including relatively high unemployment rates, limited growth in disposable income, and low consumer confidence. These conditions have led many consumers to seek out lower-priced alternatives, favouring channels such as discounters, warehouse clubs, and retail e-commerce, which are perceived to offer better value. Additionally, supermarkets have struggled to match the distinct value propositions of other channels. Warehouse clubs, for instance, appeal by offering competitive prices on a limited number of SKUs, reducing search time and cost for shoppers, while hypermarkets provide the convenience of one-stop shopping with a broader product assortment.

What next for snacks?

Across the forecast period, snacks in Canada is set to record positive growth, while volume will remain modest. These results will be driven by several key factors. Firstly, population growth is expected to remain low compared to 2023 and earlier years, as the immigration policy adjustments introduced in 2024 are likely to remain in place, thereby constraining volume expansion. Secondly, price levels, which are already elevated, may face additional upward pressure if trade relations between Canada and the United States continue to deteriorate. A more unstable relationship could disrupt the supply and pricing of imported goods, including essential ingredients and manufacturing equipment used in the production of ice cream, chocolate confectionery, savoury snacks, biscuits, and snack bars.