One of every four Canadian foodtech companies focuses on plant-based food innovation—nearly double the global average. The country is becoming a global leader in this high-growth potential market, and B2B innovators are leading the way. Here is how they are capitalizing on Canada’s unique strengths to make that happen.
How Canada Became a Plant-Based Co-Manufacturing Hub
The plant-based protein category has seen its share of challenges, from shifting consumer preferences to high production costs. While the struggles of leading global consumer brands like Impossible Foods in achieving profitability and expanding consumer acceptance have been well documented, Canada’s strength in B2B ingredient manufacturing represents a quiet success story that is now turning heads globally.
Major investments—like Roquette’s $600M pea protein facility in Manitoba, the largest of its kind in the world—are positioning Canada as a co-manufacturing hub for plant-based ingredients. Elsewhere, companies like Merit Functional Foods are refining use cases for canola proteins in plant-based meat and dairy products and cross-industry collaborations, such as the $16M initiative led by Daiya Foods, are developing cheese alternatives using Canadian-grown pulses. All these examples demonstrate how Canada’s unique position as a global agricultural leader in high-protein crop production lays an essential foundation for future growth in this sector.
Overcoming Barriers to Growth
Despite Canada’s natural agricultural advantages and B2B infrastructure, commercializing and scaling plant-based products does remain a challenge. High production costs, regulatory hurdles, and gaps in commercialization support are making it difficult for Canada’s plant-based innovators to expand.
To accelerate growth in this key market opportunity, Canadian food sector must:
✅ Leverage Canada’s agricultural strengths – Canada is a global leader in plant protein crops like lentils, peas, and canola. Investments like Roquette’s $600M pea protein facility in Manitoba prove there’s demand for high-quality, sustainably sourced ingredients. The opportunity? Scaling production and turning Canada into a dominant player in global plant-based co-manufacturing.
✅ Double down on partnerships – Strategic collaborations can de-risk innovation and accelerate product development. Daiya Foods' partnership with Ingredion and Lovingly Made Flour Mills is a prime example of the role collaboration can play in developing high quality, next-gen plant-based ingredients. More of these kinds of value-chain partnerships will help strengthen Canada’s role as a food innovation leader.
✅ Expand commercialization pathways – Canada is developing countless groundbreaking plant-based innovations, but many struggle to move from R&D to market. More pilot facilities, co-manufacturing hubs, and regulatory support can help startups bridge this gap.
Canada’s B2B Plant-Based Future
The Canadian foodtech ecosystem is primed for B2B growth. Companies that focus on solving formulation challenges, enhancing functionality, and supplying CPG brands with high-performing plant-based ingredient options will play a leading role in the coming wave of plant-based innovation.
👉 Want to dive deeper? Access the Foodtech in Canada 2025 Ecosystem Report for a full breakdown of the trends shaping Canada’s food innovation landscape: https://cfin-rcia.ca/yodl-content/cfin-reports/foodtech-in-canada-2025-ecosystem-report