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Canada Foodservice Market Size

The Canada Foodservice Market is experiencing significant growth, driven by an increasing preference for quick-service restaurants and eating-out habits post-pandemic. The market's expansion is further supported by the rise of street vendors and unorganized QSR outlets, alongside a burgeoning interest in entrepreneurship within the sector. The quick-service restaurant segment is poised to be the fastest-growing area, with the cloud kitchen market also expanding due to the surge in online food deliveries. However, high commission fees from delivery platforms pose a challenge to the market's growth trajectory.

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Market Size of canada foodservice Industry

Canada Foodservice Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 114.29 Billion
svg icon Market Size (2029) USD 261.09 Billion
svg icon Largest Share by Foodservice Type Quick Service Restaurants
svg icon CAGR (2024 - 2029) 17.96 %
svg icon Fastest Growing by Foodservice Type Quick Service Restaurants
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Canada Foodservice Market Analysis

The Canada Foodservice Market size is estimated at 114.29 billion USD in 2024, and is expected to reach 261.09 billion USD by 2029, growing at a CAGR of 17.96% during the forecast period (2024-2029).

114.29 Billion

Market Size in 2024 (USD)

261.09 Billion

Market Size in 2029 (USD)

9.51 %

CAGR (2017-2023)

17.96 %

CAGR (2024-2029)

Largest Segment by Foodservice Type

46.82 %

value share, Quick Service Restaurants, 2023

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Increasing online food deliveries, the rising preference for breakfast on the go, and the opening of new establishments are the factors driving the segment's expansion.

Largest Segment by Outlet Type

64.80 %

value share, Independent Outlets, 2023

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With government plans and funds being introduced to encourage independent outlets in the country, Canada has been experiencing a wave of entrepreneurship in foodservice.

Fastest-growing segment by Foodservice Type

18.37 %

Projected CAGR, Quick Service Restaurants, 2024-2029

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The bakery and ice cream segments are anticipated to boost the market's growth in the future, and they together represented over 12% of the total market value in 2022.

Fastest-growing segment by Outlet Type

18.08 %

Projected CAGR, Chained Outlets, 2024-2029

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Franchising of key restaurant brands has tremendous potential in major Canadian cities, and corporations are capitalizing on it due to the ever-rising demand for fast food.

Leading Market Player

3.40 %

market share, RECIPE Unlimited Corporation, 2022

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It has over 1,300 restaurants in more than 300 communities across Canada, including 61 international locations with 24 food brands, mostly operated by franchisees.

Increase in number of QSRs and street food vendors owing to the rise in popularity of on-the-go meals

  • Quick-service restaurants comprised the largest segment in Canada in 2022. The market registered a CAGR of 7.21% during the study period. The market expansion can be attributed to the continuous increase in the preference for fast food and eating-out habits after the pandemic. In 2021, 16% of Canadians ate out every day, and up to 40% ate breakfast on the go. There has also been an increase in the number of street vendors and unorganized QSR outlets in the country. The street vendors market in Canada was worth USD 254 million in 2022, representing less than 1% of the total QSR market.
  • The quick-service restaurant market is anticipated to be the fastest-growing segment in the coming years, registering a CAGR of 18.37% by value during the forecast period. This development will be supported by a wave of entrepreneurship and new SMEs expected to launch soon. In 2022, 3.7% of Canadians were interested in opening their own QSR outlets. Around 28.3% of Canadians have worked in the food industry at some point. The food truck segment benefitted the most from this trend as it continued to be fragmented over the years. In 2022, no food truck companies in Canada had more than 5% market share.
  • The cloud kitchen market in Canada is expected to register a CAGR of 17.42% by value during the forecast period, owing to rising online food deliveries through smartphone applications, which is an integral stakeholder in the market for cloud kitchens. Online food delivery grew at a Y-o-Y rate of 7.7% by value in 2022. However, the high commission fees charged by delivery platforms constitute a significant restraint to the market's growth. These platforms are known to charge up to 30% of the order value in Canada.
Canada Foodservice Market

Canada Foodservice Industry Segmentation

Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants are covered as segments by Foodservice Type. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location.

  • Quick-service restaurants comprised the largest segment in Canada in 2022. The market registered a CAGR of 7.21% during the study period. The market expansion can be attributed to the continuous increase in the preference for fast food and eating-out habits after the pandemic. In 2021, 16% of Canadians ate out every day, and up to 40% ate breakfast on the go. There has also been an increase in the number of street vendors and unorganized QSR outlets in the country. The street vendors market in Canada was worth USD 254 million in 2022, representing less than 1% of the total QSR market.
  • The quick-service restaurant market is anticipated to be the fastest-growing segment in the coming years, registering a CAGR of 18.37% by value during the forecast period. This development will be supported by a wave of entrepreneurship and new SMEs expected to launch soon. In 2022, 3.7% of Canadians were interested in opening their own QSR outlets. Around 28.3% of Canadians have worked in the food industry at some point. The food truck segment benefitted the most from this trend as it continued to be fragmented over the years. In 2022, no food truck companies in Canada had more than 5% market share.
  • The cloud kitchen market in Canada is expected to register a CAGR of 17.42% by value during the forecast period, owing to rising online food deliveries through smartphone applications, which is an integral stakeholder in the market for cloud kitchens. Online food delivery grew at a Y-o-Y rate of 7.7% by value in 2022. However, the high commission fees charged by delivery platforms constitute a significant restraint to the market's growth. These platforms are known to charge up to 30% of the order value in Canada.
Foodservice Type
Cafes & Bars
By Cuisine
Bars & Pubs
Cafes
Juice/Smoothie/Desserts Bars
Specialist Coffee & Tea Shops
Cloud Kitchen
Full Service Restaurants
By Cuisine
Asian
European
Latin American
Middle Eastern
North American
Other FSR Cuisines
Quick Service Restaurants
By Cuisine
Bakeries
Burger
Ice Cream
Meat-based Cuisines
Pizza
Other QSR Cuisines
Outlet
Chained Outlets
Independent Outlets
Location
Leisure
Lodging
Retail
Standalone
Travel
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Canada Foodservice Market Size Summary

The Canadian foodservice market is experiencing significant growth, driven by evolving consumer preferences and an increase in dining out habits post-pandemic. Quick-service restaurants (QSRs) dominate the market, benefiting from a surge in fast food consumption and the rise of street vendors and unorganized outlets. The market is characterized by a wave of entrepreneurship, with many Canadians showing interest in opening their own QSRs. The food truck segment remains fragmented, while the cloud kitchen market is expanding due to the growing demand for online food deliveries through smartphone applications. Despite high commission fees from delivery platforms posing challenges, the cloud kitchen sector is poised for substantial growth, supported by technological advancements and a desire for international cuisine.

Full-service restaurants (FSRs) are also witnessing growth, reflecting Canada's multicultural landscape and the popularity of international cuisines such as British, Thai, Mexican, Middle Eastern, and Lebanese. The immigrant population, which is younger than the non-immigrant population, influences long-term dining trends, contributing to the demand for diverse culinary offerings. The market is fragmented, with major players holding a small share, indicating opportunities for expansion and competition. Recent developments include strategic acquisitions and expansions by key companies, further shaping the competitive landscape. Overall, the Canadian foodservice market is evolving to meet changing consumer demands, with a focus on convenience, variety, and technological integration.

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Canada Foodservice Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Foodservice Type

      1. 1.1.1 Cafes & Bars

        1. 1.1.1.1 By Cuisine

          1. 1.1.1.1.1 Bars & Pubs

          2. 1.1.1.1.2 Cafes

          3. 1.1.1.1.3 Juice/Smoothie/Desserts Bars

          4. 1.1.1.1.4 Specialist Coffee & Tea Shops

      2. 1.1.2 Cloud Kitchen

      3. 1.1.3 Full Service Restaurants

        1. 1.1.3.1 By Cuisine

          1. 1.1.3.1.1 Asian

          2. 1.1.3.1.2 European

          3. 1.1.3.1.3 Latin American

          4. 1.1.3.1.4 Middle Eastern

          5. 1.1.3.1.5 North American

          6. 1.1.3.1.6 Other FSR Cuisines

      4. 1.1.4 Quick Service Restaurants

        1. 1.1.4.1 By Cuisine

          1. 1.1.4.1.1 Bakeries

          2. 1.1.4.1.2 Burger

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Meat-based Cuisines

          5. 1.1.4.1.5 Pizza

          6. 1.1.4.1.6 Other QSR Cuisines

    2. 1.2 Outlet

      1. 1.2.1 Chained Outlets

      2. 1.2.2 Independent Outlets

    3. 1.3 Location

      1. 1.3.1 Leisure

      2. 1.3.2 Lodging

      3. 1.3.3 Retail

      4. 1.3.4 Standalone

      5. 1.3.5 Travel

Canada Foodservice Market Size FAQs

The Canada Foodservice Market size is expected to reach USD 114.29 billion in 2024 and grow at a CAGR of 17.96% to reach USD 261.09 billion by 2029.

In 2024, the Canada Foodservice Market size is expected to reach USD 114.29 billion.

Food Service Market in Canada Report Snapshots

Canada Foodservice Industry Data - Growth Trends, Market Size, Analysis & Forecast up to 2029