Hot Drinks in Canada
Euromonitor International's Hot Drinks in Canada market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 71 | Publication date: Mar 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Coffee Is the Largest Contributor to Sales of Hot Drinks
In 2008, sales of hot drinks in Canada continued to increase, with total volume growth of over 4%. The 2008 performance was driven mainly by coffee, in which the trend toward fresh coffee continued. Even with the increase in the health trend, coffee remained the largest category in Canadian hot drinks by a large margin in 2008. Steep increases in energy and transportation costs drove most coffee manufacturers to increase their unit prices during the year. This supported healthy growth in retail current value terms, but comparatively limited growth in volume terms. Strong current value growth was also attributable to a general trend towards premium products, especially more novel products, such as organic and fair trade. Standard mid-priced coffee brands struggled to maintain their positions as competition from smaller premium brands intensified.
Health Still Plays a Key Role in Hot Drinks
Convenience and health and wellness were the major trends in Canadian hot drinks in 2008. Whilst coffee was mainly affected by the convenience trend, tea was definitely ruled by health and wellness. There was rising demand for herbal tea, as consumers searched for products more beneficial to their health than black standard tea, such as natural herbal combinations. Green was rediscovered because of its antioxidant properties, although it was still a niche category. Nevertheless, it helped drive growth in tea in 2008. Still, the health and wellness trend did not influence coffee to any significant degree. Caffeine does not seem to represent a big issue in Canada – most Canadian consumers are not concerned about their caffeine intake. Even though decaffeinated coffee is healthier, it represents a niche segment within coffee, and its share of overall coffee declined over the review period.
Off-trade Sales Increase Faster Than On-trade
The Canadian preference for premium brands continued to grow. However, even though on-trade sales saw a solid and healthy growth rate, as on-trade premium coffee such as Starbucks coffee can be expensive, more Canadians shifted to off-trade throughout the review period. In other words, consumers increasingly found that the off-trade channel was a preferable channel through which to buy premium coffee, as it is often many times cheaper. The resulting continued shift in consumption revitalised the off-trade channel, which until 2005 had been suffering from comparatively slower growth.
Local Companies Look to Improve Distribution
Smaller players in hot drinks, such as Kicking Horse Coffee Company are looking for improved distribution in supermarkets/hypermarkets in order to become significant national brands rather than small niche players, in a distribution channel which is dominated by major hot drinks players such as Van Houtte Inc and Starbucks Coffee Canada Inc. With retailers looking to keep their images strong by stocking healthy and organic options, a stronger incursion by niche brands is expected to take place.
Hot Drinks Set to Continue to See Healthy Growth
Sales of hot drinks will continue to rise in both volume and constant value terms over the forecast period. While foodservice will continue to perform well, given the need for convenience, volume growth will be driven by growth in the off-trade channel, as consumers turn to this channel due to its economical benefits. Health and economy are forecast to remain the main trends influencing sales of Canadian hot drinks. Volume sales of green tea and herbal tea (as distinct from fruit tea) will develop positively due to their health features such as antioxidant content, and coffee sales will be driven by rising demand for premium and fresh products and a trend towards further diversification.
Table of contents
HOT DRINKS IN CANADA : MARKET INSIGHT
EXECUTIVE SUMMARY
Coffee Is the Largest Contributor to Sales of Hot Drinks
Health Still Plays a Key Role in Hot Drinks
Off-trade Sales Increase Faster Than On-trade
Local Companies Look to Improve Distribution
Hot Drinks Set to Continue to See Healthy Growth
KEY TRENDS AND DEVELOPMENTS
The Rising Number of Single-person Households Demand Convenience
Demand for Ethical Hot Drinks Sees Mixed Results
Health Continues to Be a Key Trend
The Population Is Ageing, but Young Consumers Remain Key
Private Label's Widening Portfolio
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Hot Drinks Company Shares by Value 2004-2008
Table 12 Hot Drinks Brand Shares by Value 2005-2008
Table 13 Penetration of Private Label by Sector 2004-2008
Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 15 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 25 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
APPENDIX
Published Data Comparisons
Production/Import/Export Data
Table 26 Production/Imports/Exports/Apparent Consumption of Hot Drinks by Sector 2001-2007
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CANADA
BRAZILIAN CANADIAN COFFEE CO LTD - HOT DRINKS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Brazilian Canadian Coffee Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
KICKING HORSE COFFEE CO LTD - HOT DRINKS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Kicking Horse Coffee Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
TIM HORTON'S INC - HOT DRINKS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Tim Horton's Inc: Key Facts
Summary 5 Tim Horton's Inc: Operational Indicators 2005-2007
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Tim Horton's Inc: Competitive Position 2008
VAN HOUTTE INC - HOT DRINKS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Van Houtte Inc: Key Facts
Summary 8 Van Houtte Inc: Operational Indicators 2005-2007
COMPANY BACKGROUND
PRODUCTION
Summary 9 Van Houtte Inc: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 10 Van Houtte Inc: Competitive Position 2008
COFFEE IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 27 Coffee Machine Sales 2002-2007
Table 28 Instant Coffee by Speciality Type 2004-2008
Table 29 Retail Sales of Coffee by Type: Volume 2003-2008
Table 30 Retail Sales of Coffee by Type: Value 2003-2008
Table 31 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 32 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 33 Standard Vs Coffee Pods 2004-2008
Table 34 Coffee Company Shares 2004-2008
Table 35 Coffee Brand Shares 2005-2008
Table 36 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 37 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 38 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 39 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 41 Other Tea by Type: % Off-trade Volume 2005-2008
Table 42 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 43 Retail Sales of Tea by Subsector: Value 2003-2008
Table 44 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 45 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 46 Tea Company Shares 2004-2008
Table 47 Tea Brand Shares 2005-2008
Table 48 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 49 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 50 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 51 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 52 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 53 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 54 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 55 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 56 Other Hot Drinks Company Shares 2004-2008
Table 57 Other Hot Drinks Brand Shares 2005-2008
Table 58 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 59 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 60 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 61 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013