Soft drinks in 2024: The big picture
Soft drinks in Canada reported a slowdown in current value sales in 2024 as price growth eased, although total volume sales remained steady. The inflation rate cooled in 2024, but the cost of living remained high in Canada and consumers were still highly price sensitive.
2024 key trends
The sugar content of soft drinks is fast becoming a decisive factor in consumer purchasing decisions. In general, consumers are increasingly avoiding high sugar products including soft drinks, which is depressing sales of some carbonates and juice products.
Competitive landscape
Coca-Cola Ltd and PepsiCo Beverages Canada remain the biggest players in soft drinks, however several small scale companies are also making inroads as they seek to capture a niche position. Several small brands such as Glow Drinks, Liquid I.
Retailing developments
While supermarkets and hypermarkets take the largest share of volume sales in the off-trade, discounters proved very popular in some categories over 2024, as these channels offer more heavily discounted prices compared to supermarkets. Independent small grocers, convenience stores and forecourt retailers also gained traction in many product categories owing to increased mobility.
Foodservice vs retail split
Foodservice has provided optimism for soft drinks manufacturers in 2024 as retail volumes sales came under pressure. In recent years, the foodservice sector has enjoyed dynamism with new openings that include both local and international brands.
What next for soft drinks?
Soft drinks are expected to see improvements in retail volume growth and current value growth over the forecast period as prices ease. Health and wellness will continue to remain a key focal area for both consumers and manufacturers with most product innovation focusing on zero sugar, hydration and natural products.
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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 in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for soft drinks?
Fountain sales in Canada
Trends
DISCLAIMER
Bottled Water in Canada
KEY DATA FINDINGS
Bottled water witnessed slowdown in growth as competition rises
Functional bottled water continues to strengthen as demand surges
Manufacturers continue to engage with consumers with innovative campaigns and products
Steady growth in volume terms
Flavoured bottled water will help drive growth
Foodservice volume sales expected to soar
Carbonates in Canada
KEY DATA FINDINGS
Carbonates continue to struggle against health concerns
Manufacturers focus on innovation to maintain sales
Tonic water/mixers enjoy growth
Gloomy outlook for off-trade volume sales in carbonates
Cola carbonates expected to take brunt of health shifts
On-trade volumes are expected to pick up in the forecast period
Concentrates in Canada
KEY DATA FINDINGS
Concentrates register healthy performance on back of manufacturer’s activity
Powder concentrates overtake liquid to become fastest growing category
Consumer preference for sparkling water helps the category
Bright outlook for concentrates is ahead
Competition from RTD drinks especially in liquid concentrates
Health focus will also mean increased regulatory surveillance
Concentrates conversions
Juice in Canada
KEY DATA FINDINGS
Juice registers flat performance amidst health concerns
Strong competition from more innovative categories
Traditional grocery retailers lose out to convenience store, discounters and retail e-commerce
Juice is expected to show limited growth in the forecast period
Healthier variants see relatively stronger growth
Market to benefit from innovative healthier products
RTD Coffee in Canada
KEY DATA FINDINGS
RTD coffee sees flat growth in 2024
Stiff competition from RTD tea and other hot drinks
Starbucks maintains a strong lead given widespread presence
RTD coffee expected to see slowdown
Generation Z will remain key target audience
Scope to build on health and wellness trend
RTD Tea in Canada
KEY DATA FINDINGS
RTD tea shows solid growth driven by carbonated RTD tea
Kombucha manufacturers report healthy growth among players
Supermarkets and hypermarkets lose share to small retailers
RTD tea to register slow yet steady growth
Kombucha will remain key growth driver within carbonated RTD tea
On-trade will spur growth in RTD tea
Energy Drinks in Canada
KEY DATA FINDINGS
Energy drinks see slowdown in growth as competition heats up
Manufacturers focus on innovation to boost appeal
Focus on sponsorship and social media engagement continues
Slower growth expected in the forecast period
Reduced sugar variants offer growth potential
On-trade to see impressive growth in the forecast period
Sports Drinks in Canada
KEY DATA FINDINGS
Sports drinks volumes under pressure as competition heats up
Product development gains momentum in sports drinks
Newcomers take on heavyweight brands
Sports drinks face solid growth amid healthy lifestyles
Focus on innovation to bring more functional health benefits
Promotional activities and sponsorships to remain key strategy
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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