Insights into Canada’s Food and Beverage Manufacturing Workforce

Food Processing Skills Canada unveiled crucial workforce forecasts and labor market insights, offering a comprehensive glimpse into the challenges and opportunities shaping the Canadian food and beverage manufacturing industry.

Canada’s food and beverage manufacturing industry, constituting a mere 0.3% of all business establishments, emerges as a formidable force, contributing 2% to the GDP and employing 1.7% of the workforce. Last year’s food and beverage exports, estimated at $54.3 billion, accounted for 7% of Canada’s total exports, underscoring the industry’s significant economic impact.

In 2022, the industry employed around 300,000 individuals, with projections indicating a 9% growth to reach 325,000 by 2030. However, the backdrop of an aging population reveals a nuanced challenge. Over the next seven years, not only will 25,000 new workers be needed, but more significantly, over 65,000 current workforce members are expected to retire. Coupled with the existing 50,000 vacancies, this paints a compelling picture — the industry needs to welcome 142,000 new individuals by 2030, equivalent to nearly 50% of the current workforce.

The impact of the labor shortage is palpable, with previous research highlighting that a single unfilled position costs businesses up to $190 per day in lost net revenue. As of 2023, the industry’s 8,800 employers across Canada face potential losses totaling a staggering $9.9 million in net revenue per day or $3.6 billion annually.

While overall labor productivity is poised to rise by 2.7% until 2030, the beverage manufacturing subsector stands out, projecting a 38.5% demand for 19,000 new workers. In contrast, the meat and poultry processing sector maintains stability, requiring only 25% of the current workforce for hiring projections. However, the seafood processing sector faces unique challenges, with 28% of its workforce expected to retire by 2030.

Food Processing Skills Canada’s research underscores the pivotal role of New Canadians in filling the workforce gap. With not enough younger individuals entering the industry, immigration emerges as a primary driver of growth. Currently, immigrants represent 35% of the industry’s workforce, surpassing the Canadian labor force average by nearly 10%.

Jeff Purcell, VP of Operations at Champlain Seafood and Board Director at Food Processing Skills Canada, advocates for Canada’s food and beverage manufacturing industry to not only excel in safe food production but also become a global leader in workforce development. With research capabilities, resources, and leadership in place, the industry is poised to implement innovative solutions and achieve excellence.

In navigating the complex landscape of the Canadian food and beverage manufacturing industry, strategic partnerships are key. Directpath Canada stands as your ally in addressing critical staffing needs, leveraging our expertise in global recruitment and workforce solutions. Explore the comprehensive services provided by Directpath Canada and join us in shaping the future of Canada’s food and beverage manufacturing workforce. Together, let’s propel the industry to new heights of success and innovation.