Hot drinks in 2024: The big picture
In 2024, hot drinks in Canada continued to record positive retail value growth, with strong value results in categories such as instant coffee mixes, fruit/herbal tea and fresh coffee beans. Despite an uplift of 7% for retail value, retail volume growth stagnated, challenged by rising price points.
2024 key trends
Innovation continued to be key in the Canadian hot drinks market in 2024, with brands focusing on flavour variety and convenient formats to meet the diverse preferences of consumers. In the other hot drinks category, there has been rising demand for chocolate-flavoured powder drinks and malt-based hot drinks that cater to both indulgent and health-conscious consumers.
Competitive landscape
Key players in the coffee, tea, and other hot drinks categories have been actively expanding their product lines, investing in sustainability, and enhancing their presence in the digital and retail spaces to capture a more diverse consumer base. Companies including Starbucks, Nestlé and Keurig Dr Pepper have been at the forefront of expanding premium and speciality coffee options.
Retailing developments
In 2024, the hot drinks market saw ongoing shifts in retail distribution, driven by evolving consumer preferences, economic factors, and the rise of digital and omnichannel shopping. Retailers were adapting strategies to meet these shifts by focusing on convenience, variety, and sustainability in their hot drink offerings.
Foodservice vs retail split
Foodservice for hot drinks recorded positive volume growth in 2024, driven by other hot drinks and coffee.
What next for hot drinks?
Across the forecast period, hot drinks will record positive retail value and volume growth, with growth drivers including fresh coffee beans, fruit/herbal teas and instant coffee mixes. Premiumisation will continue to support sales of fresh coffee categories, driving value growth, while the rising interest in healthy attributes and functional ingredients allows fruit/herbal teas to gain ground.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Canada with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in Canada, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in Canada report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in Canada?
- To what extent are health considerations impacting consumption of Hot Drinks in Canada?
- What are the traditional preferences in Hot Drinks in Canada? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in Canada?
- Which are the leading brands in Hot Drinks in Canada?
- How are products distributed in Hot Drinks in Canada?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in Canada
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in Canada
KEY DATA FINDINGS
Instant coffee benefits from affordability while fresh coffee is perceived to offer stronger quality
Premiumisation in fresh coffee aids retail value sales across 2024
Keurig Canada retains its lead, while improving its share in 2024
Sustainability and ethical sourcing will become key attributes in coffee
Technological advancements in home coffee brewing impact brand strategies
Tea in Canada
KEY DATA FINDINGS
The shift towards fruit/herbal tea aligns with the demand for functional ingredients
Inflation impacts premium tea consumption as consumers adapt their purchasing habits
Innovations in tea focus on formats and flavours to drive interest
Players invest in health attributes to drive ongoing growth in herbal/fruit tea
Speciality tea shops will support the expansion of premium tea options
Customised blends is set to be a rising trend across the forecast period
Other Hot Drinks in Canada
KEY DATA FINDINGS
Chocolate-based flavoured powder drinks focus on health benefits to align with rising trends
Malt-based hot drinks increasingly appeal to health-conscious consumers
A shift towards private label options as consumers look for cost saving opportunities
The forecast period will see the expansion of ready-to-mix and convenient formats
Brands may focus on offering other plant-based hot drinks across the forecast period
Premiumisation and indulgent flavours will drive market differentiation
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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This report originates from Passport, our Hot Drinks research and analysis database.
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