Bakeries across Canada are rising to meet consumer demand by introducing new products, expanding into retail or wholesale, and even building online storefronts. Yet, for many bakery owners, growth brings as many challenges as it does opportunities, from managing new equipment and staff to handling operational risks.
That's where insurance becomes more than a safety net — it becomes a growth partner.
The bakery boom and the risks behind it
Canada's bakery market is thriving. The Canadian bakery products market is valued at USD 10.7 billion in 2024, driven by demand for artisanal, gluten-free, vegan and sustainably sourced products.1 Yet, with rising opportunity comes rising complexity:
- 49% of food industry participants, including bakeries, plan to invest in new machinery or technology, with 32% introducing automation over the next three years.2
- Expansion trends are reflected in bakery chains, which plans to grow from 16 to 40 locations within five years, including wholesale and suburban retail expansion.3
- While bakery-specific data is limited, food manufacturing is among the higher-risk sectors. In 2022, 18,131 disabling injuries were reported across federally regulated sectors.
Insurance as a strategic growth lever
At Gallagher, we believe insurance isn't just about reacting to losses, it's about enabling smart, sustainable business development. Our customized solutions support bakeries in three critical areas:
1. Equipment and expansion financing
When upgrading mixers, ovens or freezers, insurance can work alongside financing by covering costly breakdowns, theft or business interruptions. For one Toronto-based bakery, insurance covered damages to a key oven during peak season, saving their output and helping them triple production the following year.
2. Risk management and employee support
As you bring on new staff, training and safety become essential. Gallagher provides policies that help cover:
- Employee training programs
- Workplace injuries and liability
- Compliance with health and safety standards
3. Sustainability and brand trust
Modern customers care about impact. Gallagher now offers Green Business Endorsements, covering eco-friendly upgrades like energy-efficient equipment or waste-reduction initiatives.
Support that grows with you
Whether you're just starting out or scaling into a regional operation, your bakery deserves insurance that evolves with your business. Gallagher's advisors specialize in the food and retail space, offering one-on-one guidance and tailored solutions that grow with you, from your first storefront to your tenth.
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Sources
1"Canada Bakery Products Market Report by Product Type (Biscuits, Bread and Rolls, Cakes and Pastries, Rusks), Distribution Channel (Convenience Stores, Supermarkets and Hypermarkets, Independent Retailers, Artisanal Bakeries, Online Stores, and Others), and Region 2025-2033, imarc, accessed 3 Sep 2025.
2Dummer, Jane. "Automation Advances in the Baking Industry," Food in Canada, 23 Mar 2023.
3Hautala, Shelby. "Montreal-Based Bakery 'Au Pain Doré' Discusses Expansion Plans in Canada and Menu Innovation [Interview]," Retail Insider, 5 Feb 2024.
4"2022 Annual Report — Occupational Injuries In The Canadian Federal Jurisdiction, Government of Canada, updated 6 Aug 2024.