Soft drinks adjust to shifting health priorities, economic caution and changing consumption behaviour
Soft drinks in Canada experienced a period of recalibration in 2025 as consumer behaviour continued to evolve in response to economic pressures, shifting demographic dynamics and increasingly complex health expectations. Retail volume demand softened gradually after the pandemic-era distortions, aligning more closely with modest population expansion and a more cautious approach to discretionary spending. At the same time, retail value remained supported by elevated price levels, ongoing cost pressures across supply chains and a continued shift toward premium propositions in categories offering higher quality, distinctive ingredients or functional benefits.
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Overview:
Understand the latest market trends and future growth opportunities for the Soft 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:
- Bottled Water
- Carbonates
- Concentrates
- Juice
- RTD Coffee
- RTD Tea
- Energy Drinks
- Sports Drinks
- Asian Speciality Drinks
If you're in the Soft 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 Soft 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 Soft Drinks in Canada?
- To what extent are health considerations impacting consumption of Soft Drinks in Canada?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Soft Drinks in Canada?
- Which are the leading brands in Soft Drinks in Canada?
- What potential exists for multinational or domestic soft drinks companies to expand in Canada?
- How are products distributed in Soft Drinks in Canada?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of Soft Drinks?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
Soft Drinks in Canada
Soft drinks adjust to shifting health priorities, economic caution and changing consumption behaviour
KEY DATA FINDINGS
Health and wellness expectations reshape category dynamics
Premiumisation and affordable indulgence gain relevance in a cautious economic climate
Customisation and home beverage making expand, challenging ready-to-drink formats
Soft drinks forecast to maintain modest value growth amid constrained volume gains
Health priorities and functional positioning to intensify across categories
Regulatory shifts and ingredient pressures to influence product strategy
Category leaders diversify portfolios while adjusting to shifting distribution agreements
Agile challengers and specialised players gain traction through innovation
Store-based retail remains dominant as shoppers shift toward value-oriented purchasing
E-commerce strengthens as infrastructure and shopper confidence mature
Foodservice recovery remains weaker than anticipated
Fountain sales stabilise alongside foodservice recovery but remain constrained by economic pressures
COUNTRY REPORTS DISCLAIMER
Bottled Water in Canada
KEY DATA FINDINGS
Stable demand but elevated prices continue to shape consumer behaviour
High price levels limit volume expansion despite bottled water’s health halo
Functional and sparkling flavoured water outperform within the category
Gradual volume growth supported by health positioning and flavour innovation
Rising focus on flavour experimentation and cross-category innovation
Sugar aversion and new labelling rules will shape reformulation and product mix
Market leadership shaped by portfolio breadth and structural consolidation
Premium and sustainability-focused brands gain momentum
Discounters remain important as consumers seek value and buy in bulk
Online penetration expands as click-and-collect becomes more entrenched
Carbonates in Canada
KEY DATA FINDINGS
Carbonates pressured by elevated prices and health concerns
Volume resumes decline as category remains mature and price anchored
Non-cola, reduced sugar and mixers outperform a soft baseline
Marginal volume contraction but modest value growth expected
Functional and prebiotic sodas to build from a niche base
Sugar aversion and FOP labels to shape reformulation and portfolio choices
Global cola majors remain dominant as KDP gains ground in non-cola
Premium and craft soda brands drive niche growth
Store-based channels dominate as shoppers increasingly plan purchases
E-commerce penetration rises, led by click-and-collect and omni-channel models
Concentrates in Canada
KEY DATA FINDINGS
Budget-conscious consumers and home drink making drive growth in concentrates
Diverging trends for liquid and powder concentrates
Home beverage making emerges as a structural growth driver
Budget focus and customisation are expected to support further volume growth
Sustainability and environmental benefits strengthen the case for concentrates
Sugar aversion, sweetener choices and front-of-pack labelling create uncertainty
Established leaders expand portfolios as appliance-based systems gain scale
Smaller brands and functional propositions add dynamism
Offline retail remains dominant as e-commerce gains strategic importance
Omni-channel models and direct-to-consumer strategies support category growth
Concentrates Conversions
Juice in Canada
KEY DATA FINDINGS
Ongoing pressure on volume as high prices and sugar concerns limit demand
Volume contraction continues as elevated prices limit recovery
Wellness-aligned niches outperform despite broader declines
Gradual volume decline expected alongside modest value growth
Functional benefits and sustainability set to shape medium-term innovation
Sugar aversion and new labelling rules expected to constrain growth
Leading players face pressure as portfolio repositioning proves challenging
Smaller innovators gain traction through sustainability and cold-pressed formats
Supermarkets and discounters remain central as shoppers seek value
Online growth persists as digital shopping becomes habitual
RTD Coffee in Canada
KEY DATA FINDINGS
Inflation pressure weighs on RTD coffee volumes despite resilient coffee culture
RTD coffee struggles to maintain momentum after the inflation shock
Cold coffee trends and younger consumers provide some support
Healthy growth expected, supported by strong coffee culture and innovation
Functional benefits and sustainability emerge as key areas of differentiation
Sugar reduction, labelling changes and health perceptions influence future demand
Coffee shop brands dominate RTD coffee through strategic partnerships
Premium cold brew and niche players add breadth to the category
Brick-and-mortar channels remain central to RTD coffee distribution
E-commerce gains traction as part of broader online grocery growth
RTD Tea in Canada
KEY DATA FINDINGS
Health positioning and premium innovation support a levelling RTD tea market
RTD tea growth slows as inflation and category maturity weigh on demand
Growth pockets in carbonated RTD tea, kombucha and reduced sugar formats
Moderate growth outlook driven by health trends but constrained by demographics and competition
Functional benefits and cross-category innovation gain prominence
Sugar reduction, sweeteners and labelling changes shape future dynamics
Nestea transition reshapes leadership while Fuze enters the market
Smaller brands and kombucha specialists diversify the competitive set
Brick-and-mortar remains the primary sales channel for RTD tea
E-commerce and omni-channel models continue to gain importance
Energy Drinks in Canada
KEY DATA FINDINGS
Strong growth fuelled by busier lifestyles and demand for affordable indulgence
Energy drinks benefit from functional positioning and affordable luxury
Reduced sugar variants gain momentum as sugar scrutiny returns
Continued growth expected, but at a more measured pace
Flavour innovation and cross-category inspiration to sustain consumer interest
Sugar aversion, labelling changes and regulatory limits shape future growth
US entrants and adjacent-category players intensify competition
Clean energy and plant-based positioning create fast-growing niches
Offline and omni-channel retail remain central to category reach
E-commerce gains importance, especially for younger and brand-focused consumers
Sports Drinks in Canada
KEY DATA FINDINGS
Sports drinks stabilise after inflation shock but demand remains constrained
Sports drinks return to flat volume as high prices cap recovery
Reduced sugar and performance-positioned products prove more resilient
Moderate volume growth outlook supported by active lifestyles but tempered by headwinds
Flavour innovation and cross-category concepts expected to drive engagement
Sugar aversion and new labelling rules likely to reshape formulations
Category leadership remains concentrated while new players target performance niches
Emerging brands emphasise clean, all-day hydration and selective distribution
Forecourt retailers and discounters remain key to category reach
E-commerce gains traction as click-and-collect becomes routine
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Soft Drinks
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- Carbonated Natural Mineral Bottled Water
- Carbonated Spring Bottled Water
- Carbonated Purified Bottled Water
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- Still Flavoured Bottled Water
- Sparkling Flavoured Bottled Water
- Functional Bottled Water
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- Still Natural Mineral Bottled Water
- Still Spring Bottled Water
- Still Purified Bottled Water
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- Regular Carbonates
- Reduced Sugar Carbonates
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- Regular Cola Carbonates
- Reduced Sugar Cola Carbonates
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- Regular Non-Cola Carbonates
- Reduced Sugar Non-Cola Carbonates
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- Regular Lemonade/Lime
- Reduced Sugar Lemonade/Lime
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- Regular Tonic Water/Mixers/Other Bitters
- Reduced Sugar Tonic Water/Mixers/Other Bitters
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- Regular Orange Carbonates
- Reduced Sugar Orange Carbonates
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- Regular Other Non-Cola Carbonates
- Reduced Sugar Other Non-Cola Carbonates
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- Liquid Concentrates
- Powder Concentrates
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- Not from Concentrate 100% Juice
- Reconstituted 100% Juice
- Coconut and Other Plant Waters
- Juice Drinks (up to 24% Juice)
- Nectars
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- RTD Coffee
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- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
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- Regular Energy Drinks
- Reduced Sugar Energy Drinks
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- Regular Sports Drinks
- Reduced Sugar Sports Drinks
- Asian Speciality Drinks
Soft Drinks
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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This report originates from Passport, our Soft Drinks research and analysis database.
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