Executive Summary

Mar 2019
Rapid trend towards premiumisation is the main driver of growth

A continuous rise in disposable income and a constant increase in consumer awareness of more sophisticated offerings drive growth in hot drinks. In coffee, products with added value, such as organic, rainforest alliance certified and fair trade, are successfully charging a premium while increasing their presence in more channels such as warehouse clubs.

Coffee pod suppliers try to recover from stagnation

Keurig Canada Inc is making a major investment in coffee pods to reactivate sales which have reached a plateau phase. The company’s merger with Dr Pepper is deemed to gain stronger leverage to carry out a wider range of activities in both the retail and the consumer domain.

Sustainability remains a key concern among consumers

Canadian consumers and both federal and provincial governments remain very sensitive to the environmental impacts of coffee pods. In response to this concern, both Keurig Canada Inc and Nestlé Canada Inc have made major investments as part of their corporate social responsibility to address this need.

Health and wellness claims remain a major unique selling point for new product launches

In light of the shift in consumer preferences for hot drinks, new product developments have been directed at certification related to health and wellness and social and environmental awareness. Products with additional natural ingredients such as Pure Leaf Pure Matcha tea from PepsiCo Beverages Canada and 100% compostable McCafé Keurig-compatible pods are good examples of these trends.

Tea and coffee are expected to maintain healthy growth while other hot drinks is expected to contract

Different growth patterns are likely to be visible for different product types during the forecast period. While fresh coffee beans and fresh ground coffee are expected to be the main drivers of growth in coffee, fresh ground coffee pods is expected to see more moderate growth, being very dependent on the penetration of coffee pod machines.

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Hot Drinks in Canada

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Overview

Discover the latest market trends and uncover sources of future market growth for the Hot Drinks industry in Canada with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Hot Drinks industry in Canada, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Canada for free:

The Hot Drinks in Canada market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Hot Drinks in Canada?
  • What are the major brands in Canada?
  • How has an increasing desire for heart healthy or fiber-added drinks affected the hot drinks industry in Canada?
  • Are manufacturers changing packaging sizes and formats to fit an on-the-go lifestyle?
  • How have changing demographics (for example an aging population) affected the hot drinks market in Canada?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Hot Drinks market research database.

Hot Drinks in Canada

EXECUTIVE SUMMARY

Rapid trend towards premiumisation is the main driver of growth
Coffee pod suppliers try to recover from stagnation
Sustainability remains a key concern among consumers
Health and wellness claims remain a major unique selling point for new product launches
Tea and coffee are expected to maintain healthy growth while other hot drinks is expected to contract

MARKET DATA

Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2013-2018
Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2013-2018
Table 3 Retail Sales of Hot Drinks by Category: Volume 2013-2018
Table 4 Retail Sales of Hot Drinks by Category: Value 2013-2018
Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2013-2018
Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2013-2018
Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2013-2018
Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2013-2018
Table 9 Total Sales of Hot Drinks by Category: Total Volume 2013-2018
Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2013-2018
Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2014-2018
Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2015-2018
Table 13 Penetration of Private Label in Hot Drinks by Category: % Retail Value 2013-2018
Table 14 Retail Distribution of Hot Drinks by Format: % Volume 2013-2018
Table 15 Retail Distribution of Hot Drinks by Format and Category: % Volume 2018
Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2018-2023
Table 17 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2018-2023
Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2018-2023
Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2018-2023
Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2018-2023
Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2018-2023
Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2018-2023
Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2018-2023
Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2018-2023
Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2018-2023

SOURCES

Summary 1 Research Sources

Coffee in Canada

HEADLINES

PROSPECTS

Fresh coffee beans is the most dynamic in 2018
Major investments by Keurig and Nestlé help coffee pods return to growth
Different patterns exist in consumption of coffee at home and out of home

COMPETITIVE LANDSCAPE

Sustainability remains one of the key initiatives of advertising campaigns
Brands with on-trade visibility are performing very well especially in coffee pods
Nescafé shapes the faith in instant coffee in 2018

CATEGORY DATA

Table 26 Retail Sales of Coffee by Category: Volume 2013-2018
Table 27 Retail Sales of Coffee by Category: Value 2013-2018
Table 28 Retail Sales of Coffee by Category: % Volume Growth 2013-2018
Table 29 Retail Sales of Coffee by Category: % Value Growth 2013-2018
Table 30 Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2013-2018
Table 31 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume 2013-2018
Table 32 NBO Company Shares of Coffee: % Retail Value 2014-2018
Table 33 LBN Brand Shares of Coffee: % Retail Value 2015-2018
Table 34 Forecast Retail Sales of Coffee by Category: Volume 2018-2023
Table 35 Forecast Retail Sales of Coffee by Category: Value 2018-2023
Table 36 Forecast Retail Sales of Coffee by Category: % Volume Growth 2018-2023
Table 37 Forecast Retail Sales of Coffee by Category: % Value Growth 2018-2023
Table 38 Forecast Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2018-2023

Other Hot Drinks in Canada

HEADLINES

PROSPECTS

Health-conscious consumers do not consider other hot drinks to match their wellness-orientated lifestyle
The emergence and expansion of the pod format offers good opportunities
Alternatives in liquid format continue to remain a threat to growth

COMPETITIVE LANDSCAPE

Nestlé Canada remains the dominant player in 2018
Highly visible on-trade brands like Tim Hortons and Starbucks fuel growth outside home

CATEGORY DATA

Table 39 Retail Sales of Other Hot Drinks by Category: Volume 2013-2018
Table 40 Retail Sales of Other Hot Drinks by Category: Value 2013-2018
Table 41 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2013-2018
Table 42 Retail Sales of Other Hot Drinks by Category: % Value Growth 2013-2018
Table 43 NBO Company Shares of Other Hot Drinks: % Retail Value 2014-2018
Table 44 LBN Brand Shares of Other Hot Drinks: % Retail Value 2015-2018
Table 45 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2018-2023
Table 46 Forecast Retail Sales of Other Hot Drinks by Category: Value 2018-2023
Table 47 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2018-2023
Table 48 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2018-2023

Tea in Canada

HEADLINES

PROSPECTS

More sophisticated offerings in loose tea trigger growth while tea bags black underperforms
Millennials are more inclined to switch from coffee to tea because of the perceived health benefits
Extreme potential exists in the on-trade channel

COMPETITIVE LANDSCAPE

Davids Tea continues to lead sales of loose tea
Key suppliers of tea bags expand their presence in fruit/herbal tea
Fruit/herbal tea remains very fragmented in 2018

CATEGORY DATA

Table 49 Retail Sales of Tea by Category: Volume 2013-2018
Table 50 Retail Sales of Tea by Category: Value 2013-2018
Table 51 Retail Sales of Tea by Category: % Volume Growth 2013-2018
Table 52 Retail Sales of Tea by Category: % Value Growth 2013-2018
Table 53 NBO Company Shares of Tea: % Retail Value 2014-2018
Table 54 LBN Brand Shares of Tea: % Retail Value 2015-2018
Table 55 Forecast Retail Sales of Tea by Category: Volume 2018-2023
Table 56 Forecast Retail Sales of Tea by Category: Value 2018-2023
Table 57 Forecast Retail Sales of Tea by Category: % Volume Growth 2018-2023
Table 58 Forecast Retail Sales of Tea by Category: % Value Growth 2018-2023