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Smoothies Market Size, Share and Growth Analysis:Smoothies Market was worth USD 12.10 billion in 2020 and is projected to grow at a CAGR of 8%, to reach USD 17 billion by 2025. Smoothie is a thick nonalcoholic beverage made from raw vegetables or fruits along with some other ingredients. Other ingredients used in smoothie include water, ice, sweeteners, chocolate, nuts, dairy products such as milk and yogurt and other nutritional supplements.
Smoothies Market Growth and Demand Analysis:Smoothies which include a large serving of fruits and vegetables are recommended for a healthy diet. However, the use of too many sweeteners, protein powders, and ice creams is not healthy. Smoothies consist of high dietary fiber content making them healthier than fruit juices.
Green smoothies made from healthy vegetables are gaining prominence, especially in health-conscious people. Smoothies with increased carbohydrate content by using sugar additives can itself replace a meal.An increasing number of health-conscious people, changing lifestyles and food habits and health benefits associated with smoothies are some of the major factors driving the smoothies market.
IntroductionOntario’s economy continues to grow in a highly uncertain global environment. Since June 2018, 272,400 net new jobs have been created, and the unemployment rate has been near its historic low. Growth has been supported by provincial government policies that have lowered business costs, reduced regulatory red tape and enhanced workforce skills. These are outlined in more depth in r.The Ministry of Finance has updated its outlook to reflect changes in private-sector forecasts.
Steady economic growth is projected for the province by all private-sector forecasters, consistent with the outlook at the time of the 2019 Budget. There are a number of factors in the current global economic environment that could affect economic growth.
Key risks include heightened global trade and political tensions, slowing global growth, elevated household debt levels, and financial market volatility. Ontario’s Recent Economic StrengthOntario’s economy has continued to grow, supported by government measures to improve business competitiveness and promote job creation, while making government spending smarter and more accountable. Ontario’s real gross domestic product ( GDP) advanced by 0.8 per cent in the second quarter of 2019 supported by strong exports and consumer spending. This follows two quarters of relatively slower growth, which were adversely affected by unusually harsh winter weather and a slowdown in housing market activity. Although growth has been uneven over the past four quarters, on average over that period the Ontario economy has been expanding at a slightly stronger pace than Canada and the average of the G7 countries.The labour market has been strong, with 272,400 net new jobs created since June 2018. The majority of the net new jobs were full-time and in industries paying above-average wages. There were also notable gains in private-sector positions.
In addition, the unemployment rate, at 5.3 per cent in September, was near its historic low. While overall employment is up, growth has been uneven across Ontario’s regions.Robust job and wage growth, combined with the government’s plan to make life more affordable for individuals, families and businesses, have led to strong household disposable income growth averaging 0.9 per cent over the past four quarters. This has supported real household spending to advance at an average of 0.5 per cent per quarter since the middle of 2018. Income growth has also helped to slightly ease the burden of household debt.
The proportion of household debt to disposable income has declined from a recent high of 189.1 per cent in 2017 to 187.1 per cent in 2018.Trade is an important driver for Ontario’s economy. International exports have continued to rise, increasing 1.9 per cent in 2018, despite having been impacted by lower demand for automobiles in North America, slowing global growth, trade tensions and ongoing competition by global exporters. Outlook for Continued Economic GrowthOntario is expected to experience continued growth over the 2019 to 2022 period. The Ministry of Finance is forecasting Ontario’s real GDP to grow by 1.4 per cent in 2019, 1.5 per cent in 2020, 1.5 per cent in 2021 and 1.9 per cent in 2022.
For prudent fiscal planning, the Ministry of Finance’s real GDP growth projections are slightly below the average of private-sector forecasts. Table 2.1 footnotes:p = Ontario Ministry of Finance planning projection based on information up to October 9, 2019.Sources: Statistics Canada and Ontario Ministry of Finance.The Ministry of Finance regularly consults with private-sector economists and considers their economic forecasts when developing the government’s planning assumptions.
These economists are projecting continued growth for Ontario over the forecast horizon. On average, they are calling for real GDP growth of 1.5 per cent in 2019, 1.7 per cent in 2020, 1.7 per cent in 2021 and 2.0 per cent in 2022. Table 2.2Private-Sector Forecasts for Ontario Real GDP Growth(Per Cent)212022BMO Capital Markets (October)1.71.8––Central 1 Credit Union (May/March)1.61.51.72.2CIBC Capital Markets (October)1.71.31.6–The Conference Board of Canada (July)1.61.71.61.7Desjardins Group (September)1.51.61.31.8Laurentian Bank Securities (September)1.41.71.5–National Bank of Canada Financial Markets (October)1.41.6––Quantitative Economic Decisions, Inc.
(August)1.31.91.61.7Royal Bank of Canada (September)1.51.5––Scotiabank (September)1.61.8––Stokes Economics (July)1.41.71.92.0TD Bank Group (September)1.61.61.7–University of Toronto (July)1.82.12.32.3Private-Sector Survey Average1.51.71.72.0Ontario’s Planning Assumption1.41.51.51.9. Table 2.3 footnotes:p = Ontario Ministry of Finance planning projection based on external sources., Government of Canada interest rates.Sources: IMF World Economic Outlook (April 2019) and World Economic Outlook Update (July 2019), United States Bureau of Economic Analysis, “Blue Chip Economic Indicators” (October 2019), U.S. Energy Information Administration, Bank of Canada, Ontario Ministry of Finance Survey of Forecasters (October 2019) and Ontario Ministry of Finance.The global growth outlook indicates continued economic growth at a moderate pace. Broad-based weakness in global manufacturing activity and U.S.-China trade tensions are contributing to sluggish economic activity and growth prospects.
Meanwhile, monetary policy easing across advanced and emerging-market countries is helping to partially offset the negative impact of trade tensions.U.S. Real GDP growth is expected to slow from 2.3 per cent in 2019 to 1.7 per cent in 2020.
Though the U.S. Economy has proven resilient, some signs of slowing are emerging. Business activity is decelerating, while consumer and business confidence have weakened, offsetting a generally strong labour market and robust wage growth. Additionally, the boost that the 2017 and 2018 fiscal stimulus packages provided to U.S.
Economic growth is expected to ease.China’s real GDP growth outlook is expected to slow from 6.2 per cent in 2019 to 6.0 per cent in 2020. In addition to trade tensions, slowing domestic demand is having an impact on China’s growth. Slowing global auto demand and moderating Chinese imports have had wide ramifications, notably among China’s major trading partners such as Korea, Japan and Germany. Brexit has also added a high degree of political and economic uncertainty.
The Bank of England recently revised its real GDP growth forecast lower. As well, the British pound has weakened in 2019.With slowing economic growth and modest price inflation, key central banks have kept their policy interest rates at below historical averages (United States, Canada) or even negative (Europe, Japan). The European Central Bank ( ECB) policy rate is negative and is expected to remain low until inflation is close to its two per cent target. Many European long-term government bond yields are negative, suggesting continued economic weakness and risks to financial institutions through lower interest margins.
Since the beginning of the year, interest rate forecasts for most key economies have been revised lower. Table 2.4Interest Rates and Central Bank Actions(Per Cent)Three-month Treasury Bill Rate Forecast — Forecast in January 2019Three-month Treasury Bill Rate Forecast — Forecast in January 2020Three-month Treasury Bill Rate Forecast — Latest Forecast 2019Three-month Treasury Bill Rate Forecast — Latest Forecast 2020Central Bank Actions Since January 2019U.S.2.62.82.11.5Federal Reserve cut rates by 50 basis pointsEuro area0.00.3-0.5-0.4ECB cut rates by 10 basis points; resuming quantitative easingJapan0.00.1-0.1-0.1No rate changesU.K.1.11.40.80.8No rate changesCanada2.52.81.71.5No rate changes.
Table 2.4 footnotes:As of October 9, 2019.Note: The table shows end-of-year forecast averages except for the U.S., which is the annual forecast average.Sources: Blue Chip Economic Indicators (January 2019 and October 2019). Central banks of U.S., Japan, U.K., Canada and the ECB.Global financial conditions have improved in recent months, due in part to central bank easing. Most advanced economies are experiencing low long-term interest rates and high equity valuations. Declining government interest rate spreads or inverted yield curves, especially in the United States, have increased concerns about the likelihood of a recession.
Other indicators in the United States such as recent gains in stock and home prices, solid employment and income gains suggest household finances remain strong and that consumer spending growth will continue. Private-sector forecasters expect the U.S. Economy to continue growing, with real GDP growth of 2.3 per cent in 2019 and 1.7 per cent in 2020. Financial MarketsLong-term interest rates in both Canada and the United States have been trending down reflecting trade tensions and the weakening global economic outlook. Long-term interest rates have moved lower than at the time of the 2019 Budget.
For example, Canadian 10‑year bond yields declined from 1.9 per cent at the end of February to 1.4 per cent at the end of September. Over the same period, the three-month Government of Canada Treasury Bill rate edged down from 1.7 per cent to 1.6 per cent. The outlook for long-term interest rates is significantly lower over the next few years than at the time of the 2019 Budget. The Canadian 10‑year bond yield is now forecast to average 1.5 per cent in 2019, 1.6 per cent in 2020, and 2.1 per cent in 2021 and then rise to 2.5 per cent in 2022.As a result of these recent developments, the yield curve has inverted (long-term interest rates are lower than short-term rates), signalling potential investor concerns about future economic growth. An inverted yield curve sometimes precedes a recession, but there are occasions when the Canadian economy has not fallen into a recession following an inversion of the yield curve.Ontario has experienced a historically long run of economic growth since the last recession.
Since 1982, only one period of expansion has been longer, although the average rate of growth in the current expansion has been lower than the historical average.The Bank of Canada has held its policy rate unchanged at 1.75 per cent since October 2018. Financial market participants expect the Bank to cut rates over the next year, following the lead of the U.S. Federal Reserve, which cut its policy rate for the first time in over a decade in July and further reduced it since. For now, private-sector forecasters expect the Bank and Federal Reserve will begin to raise rates in 2021 to levels consistent with economies operating close to full capacity and inflation close to target.
However, financial market volatility is likely to remain a challenge for consumer, business and investor confidence. Financial market volatility as measured by the Chicago Board Options Exchange ( CBOE) Volatility Index has experienced sharp swings since early 2018. Oil Prices and the Canadian DollarWest Texas Intermediate ( WTI) crude oil prices declined sharply at the end of 2018 and started 2019 below $50 US per barrel.
Oil prices climbed to around $60 US per barrel late in September. The volatility reflects, in part, rising geopolitical tensions including a supply disruption in Saudi Arabia oil operations, and ongoing tensions between the United States and Iran. WTI crude oil prices are expected to average $57 US per barrel in 2019 and $58 US in 2020, before rising to an average annual rate of $64 US between 2021 and 2022.The Canada- U.S. Exchange rate has held relatively steady so far in 2019 and is expected to average 75.4 cents US in 2019 and rise gradually to 77.97 cents US in 2022. Business Investment and ExportsSupported by provincial government policies, such as providing accelerated writeoffs of capital investments, business investment is expected to continue growing as businesses are operating close to full capacity.
Ontario business investment is projected to increase by an annual average rate of 2.6 per cent over the 2020 to 2022 period.However, a less supportive global outlook and increasing risks could weigh on business confidence and investment plans in Ontario and other advanced economies.Ontario’s exports are expected to grow at a moderate pace, with real exports forecast to rise at an average annual rate of 2.0 per cent over the 2020 to 2022 period. Continued Job GrowthEmployment gains have been robust in 2019, with annual growth projected to be the strongest in 16 years at 2.6 per cent or close to 200,000 more jobs.
Over 125,000 net new private-sector jobs have already been created year-to-date. For the rest of the forecast period, employment growth is expected to continue, with average gains of 1.1 per cent annually.The unemployment rate is expected to average 5.6 per cent in 2019, matching the unemployment rate in 2018. The unemployment rate is projected to average 5.5 per cent between 2020 and 2022 as employment growth is expected to keep pace with Ontario’s strong population and labour force growth.The projected employment gains will contribute to continued household income growth, which is projected to average 3.9 per cent annually during the 2019 to 2022 period. HousingOntario’s housing market is emerging from a period of adjustments, with weakness earlier this year expected to lead residential investment to decline 5.3 per cent in 2019, following a 3.0 per cent decrease in 2018. Over the 2020 to 2022 period, residential construction and house prices are expected to grow moderately, supported by steady employment gains, rising incomes and strong population growth.Home resales have tended to be volatile in recent years.
Resales are expected to grow at 10.1 per cent in 2019 and 8.0 per cent in 2020, more closely aligning with underlying demand following large declines in 2017 and 2018. Over the rest of the forecast period, more modest growth is expected.
Future price gains are expected to be more moderate as compared with those prior to 2018, averaging 4.9 per cent over the 2019 to 2022 period. Support for housing affordability will come from the government’s plan to stimulate the growth of housing supply, which will help people in Ontario find the type of housing they need. See for more details. RisksOntario’s economy continues to face a number of risks that increase the likelihood of an economic slowdown. Some notable risks facing Ontario’s economy include:. Weakening global and U.S.
Economic growth;. Global trade uncertainty;. Heightened geopolitical risks;. Financial and commodity market risks; and. Household debt levels remaining elevated.Table 2.5 provides current estimates of the impact of sustained changes in key external factors on the growth of Ontario’s real GDP, assuming other external factors are unchanged. The relatively wide range of estimated impacts reflects the uncertainty regarding how the economy would respond to these changes in external conditions. Table 2.6 footnotes:p = Ontario Ministry of Finance planning projection., Government of Canada interest rates (per cent).Sources: Statistics Canada, Canada Mortgage and Housing Corporation, Canadian Real Estate Association, Bank of Canada, United States Bureau of Economic Analysis, “Blue Chip Economic Indicators” (October 2019), U.S. Energy Information Administration and Ontario Ministry of Finance.
Changes to Ontario’s Economic OutlookThe economic growth outlook for Ontario has not changed materially since the time of the 2019 Budget. Despite slower projections for global economic growth, due to lower interest rates the province’s economic growth outlook is largely unchanged since the 2019 Budget. Chart Descriptions Chart 2.1: Strengthening Labour MarketThe chart depicts the monthly employment level and the unemployment rate in Ontario from January 2017 to September 2019. There have been steady gains in employment over the period, growing from 7,074,100 jobs in January 2017 to 7,519,200 jobs in September 2019. The unemployment rate has also declined over the period with peaks of 6.4 per cent in early 2017 to a low of 5.2 per cent in May 2019.
Since June 2018, Ontario has added 272,400 net new jobs. At the same time, the unemployment rate has declined 0.6 percentage points from 5.9 per cent to 5.3 per cent in September 2019.Source: Statistics Canada.Chart 2.2: Composition of Employment Change Since June 2018The bar chart shows level changes in certain labour market indicators from June 2018 to September 2019.
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