Coffee in Canada

2021 DEVELOPMENTS

At-home consumption of coffee dips in 2021 as the on-trade rebounds notably

In response to the COVID-19 pandemic in 2020, at-home consumption of coffee increased dramatically. This followed the various COVID-19 related restrictions that saw the closure and decreased capacity of many coffee shops throughout Canada.

The rise of e-commerce sees more brands launch subscription models

E commerce has seen an important increase in its sales and share in coffee as a result of the COVID-19 pandemic since 2020. Although its share had already been increasing in the review period, this distribution channel has seen an acceleration of its growth.

Players compete for value shares by offering consumers more sustainable products

Kraft Canada Inc will remain the leading player within coffee overall in 2021 in retail volume terms, while Keurig leads in value terms. However, there is a great deal of competition in coffee, especially as players have been trying to make their products more sustainable.

PROSPECTS AND OPPORTUNITIES

The premiumisation trend continues gathering pace post pandemic

The demand for premium coffee surged during the COVID-19 pandemic due to self-indulgence during such unprecedented times. Many consumers are not likely to trade down post pandemic, having welcomed higher quality products into their daily lives and not wanting to shift back to lower quality alternatives.

Sustainability becomes a key focal point in 2022 and beyond

Over the forecast period, sustainability will become an even more important feature that influences consumers’ buying decisions. Millennial consumers care more about where and how their coffee is grown, leading to new product developments that emphasises on both sustainable growing practice and packaging.

Fresh coffee continues to benefit from the shift to at-home consumption

Many consumers bought coffee machines and adopted the practice of brewing their own coffee at home during the COVID-19 pandemic due to the closure of coffee shops. Some of them even invested in high-quality coffee equipment and as the pandemic comes to an end, will want to make use of them.