Canada’s greenhouse boom is growing output, but not domestic availability

Production does not necessarily translate to availability, especially for fresh produce. While Canada’s fresh vegetable production increased last year, supported by continued growth in greenhouse output, much of that was directed towards exports to the U.S. This contributed to Canada registering a seventh consecutive annual decline in the availability of fresh vegetables for the domestic market. As greenhouse production continues to expand, understanding whether that growth translates into greater domestic food availability—or primarily into export growth—has important implications for Canada's food security and long-term resilience. In this report, we examine what is driving these trends and what they reveal about the evolving role of Canada's greenhouse sector in domestic food supply and export markets. 

Fresh vegetable availability is still falling despite higher production 

Canada produced more fresh vegetables in 2025, yet Canadians had fewer vegetables available for consumption. 

According to Statistics Canada, fresh vegetable availability (excluding potatoes) fell to 61.8 kilograms per person in 2025, down 3.3% from a year earlier and marking a seventh consecutive annual decline. That result may seem surprising given that fresh vegetable production rose 6.4% in 2025. But higher exports, combined with lower imports, meant that stronger domestic output did not translate into more vegetables available to Canadian consumers.  

This raises an important question: as Canada expands its greenhouse sector: Is production growth strengthening domestic food availability or simply reinforcing Canada's role in North American supply chains? 

Figure 1: Fresh vegetable availability for selected vegetables, 2020 to 2025 (kilograms per person)

Sources: Statistics Canada, FCC Economics

Greenhouses now supply nearly three in 10 fresh vegetables produced in Canada 

The greenhouse industry has been one of the fastest-growing segments of Canadian agriculture. 

Between 2020 and 2025, greenhouse vegetable production increased by nearly 38%, rising from an estimated 685 thousand tons to 944 thousand tons. Cucumbers led the expansion, while tomatoes remained the largest greenhouse crop by farm-gate sales value (Table 1).  

Table 1: Greenhouse vegetable production (millions of kilograms), 2020 to 2025 

Sources: Statistics Canada, FCC Economics

Greenhouse vegetables accounted for 27% of Canada’s fresh vegetable production in 2025, up from 24% in 2020. In other words, nearly three out of every 10 fresh vegetables produced in Canada now come from a greenhouse.  

Ontario remains the dominant producer, accounting for more than 70% of national output. Quebec has gradually increased its share over the period, supported by investments aimed at expanding controlled-environment agriculture and strengthening domestic production capacity. 

The sector's growth demonstrates the industry's ability to increase output despite challenges related to climate, seasonality and land availability. But increased production has not translated to better availability. 

Export growth follows seasonal market opportunities  

And that’s because of trade. While fresh vegetable imports remained relatively stable at around $2 billion annually, exports have surged. Exports of greenhouse vegetables (figure 2) increased from approximately $1.6 billion in 2020 to more than $ 2.3 billion in 2025, a gain of nearly 44%. Greenhouse operators have become increasingly integrated into North American supply chains, particularly for tomatoes, cucumbers and peppers. Almost all of Canada's greenhouse exports are destined for the United States. 

Figure 2: Greenhouse products’ exports continue to rise as production grows (in volume)

Sources: Statistics Canada, FCC Economics

However, exports should not be viewed simply as products diverted away from Canadian consumers. Greenhouse production occurs throughout the year, but export activity follows a seasonal pattern. During the winter months, when domestic field production is limited, greenhouse vegetables play an important role in supplying Canadian consumers. As field production increases through the summer and early fall, greenhouse operators have greater flexibility to expand shipments to export markets, particularly the United States.  

Monthly trade patterns (figure 3) illustrate this complementarity. Export volumes typically increase from late spring through early autumn, coinciding with the peak season for field vegetables. At the same time, farm-gate prices (figure 4) for greenhouse tomatoes and peppers often exceed those received by field producers, creating additional incentives to access nearby U.S. markets. 

Figure 3: Monthly greenhouse vegetable exports from January 2023 to April 2026 (in volumes) 

Sources: Statistics Canada, FCC Economics

Figure 4: Farm-gate prices for greenhouse and field vegetables ($/kg) from 2020 to 2025 

Sources: Statistics Canada, FCC Economics

The result is a sector that increasingly balances domestic and export opportunities throughout the year. This seasonal flexibility has supported revenue growth and strengthened Canada's position within integrated North American food supply chains.   

Rising output and revenues do not guarantee stronger margins 

The greenhouse sector’s rapid expansion is also visible in farm revenues. Greenhouse fruit and vegetable sales reached a record $3.06 billion in 2025, up nearly 67% from 2020. Greenhouse vegetables have become one of Canada’s most valuable horticultural sectors, surpassing field vegetable receipts in 2022 and generating roughly $460 million more revenue than field vegetables in 2025. But strong revenue growth is not the same as strong profitability.  

Recent challenges, including disease outbreaks, rising energy costs and several high-profile insolvencies, underscore the importance of margin management in this industry. Labour and energy are among the largest operating expenses, accounting for 44% to 55% of total operating costs across Canada's major greenhouse-producing provinces (table 2). 

Energy costs deserve particular attention, especially considering the ongoing conflict in the Middle East which is keeping prices of commodities such as natural gas elevated. Electricity and natural gas are essential for heating, lighting and operating greenhouse systems. In 2025, according to Statistics Canada, electricity costs rose by more than 20% year over year, while spending on other fuels and heating oil also increased by more than 10%. These increases illustrate how energy price pressures can quickly influence production decisions and compress margins. 

Table 2: Share of energy and labour in total operating expenses (greenhouses specialized in fruit and vegetable), 2025

*Estimation

Sources: Statistics Canada, FCC Economics

Labour availability represents another structural challenge for the sector. The greenhouse sector remains highly dependent on temporary foreign workers, particularly in Ontario and British Columbia (figure 5). As a result, labour availability, immigration policies and energy costs will continue to play an important role in determining future competitiveness. 

Figure 5: Share of agricultural temporary foreign workers employed in greenhouse, nursery and floriculture production in Quebec, Ontario and British Columbia

Sources: Statistics Canada, FCC Economics

Bottom line 

Canada's greenhouse production growth is increasingly being absorbed by export markets rather than translating into greater domestic availability. The sector's integration into North American supply chains provides valuable market opportunities but also means that additional production does not automatically remain in Canada. 

However, the sector's heavy reliance on the U.S. market also comes with risks. Ongoing trade uncertainty and the difficulty of developing distant export markets for highly perishable products may increase the importance of strengthening domestic demand and maintaining the competitiveness of Canadian greenhouse operations. 

Ultimately, the sector’s long-term success will depend less on growing more vegetables and more on securing profitable demand, managing labour and energy costs, and remaining competitive with other North American producers.

Ulrich Zombre

Senior Economist

Ulrich leads development of the FCC Food and Beverage Report and delivers a range of analyses tailored to the evolving needs of the sector. With more than 15 years of career experience, he’s worked in areas such as food and beverage, fruit and vegetable production, and value chains.

Before joining FCC in 2026, Ulrich worked at Natural Resources Canada and the Quebec Ministry of Agriculture, Fisheries and Food, where he led research on the food processing sector. He also served as a public policy consultant to the World Bank. Ulrich holds a PhD in economics from L’Institut Agro Montpellier.