Canada Coffee Market Synopsis

Canada Coffee Market Size Was Valued at USD 24.55 Billion in 2023, and is Projected to Reach USD 41.83 Billion by 2032, Growing at a CAGR of 6.1% From 2024-2032.

Canada Coffee encompasses the Canadian coffee system, which includes coffee production and usage patterns in the country. It includes the varieties of coffee beans and brewing techniques that Canadians prefer, as well as the trends and behaviours that have been noted in coffee outlets and cafes across the region. It also entails the economic and social factors of coffee as an essential companion of Canadians in their daily cup of coffee.

• The Canadian coffee culture is a mix of various tastes influenced by the global population and the regions of Canada. It is a beverage that is consumed daily by a large proportion of the Canadian population. The trend of coffee in Canada varies from the majority’s favourite drip coffee to the new development of specialty coffee including espresso, latte, and cold brew. Canada’s largest cities such as Toronto, Vancouver, and Montreal have a very active coffee culture where there are many independent coffee shops and roasters that provide a variety of cups and methods of preparation. These are the main urban centers that act as the main market for coffee invention and directions for other parts of the country.
• The coffee industry in Canada is well-developed, which indicates a significant impact of this product on the country’s economy. Some of the leading brands that are present in the market include Tim Hortons, Starbucks, Second Cup etc., which have their own set of consumers. The most notable example of this is Tim Hortons which has grown to become part of the Canadian psyche. But, with the appearance of the independent coffee shops and micro roasters Canadians are now familiar with a variety of the coffee beans and the ways of their brewing. This change is due to the increased concern for quality and the source of the coffee and the ever-growing concern of the consumer about the process through which the coffee is produced.
• Socio-culturally, coffee shops in Canada are significant in that they act as social gathering places where individuals interact, engage in activities such as work and leisure. The consumption of coffee in cafes also has sociability benefits and the cafes themselves are a social space, as is the case internationally. Also, having long winters with cold weather, Canadians prefer to warm up and have coffee more often than people from countries with more favourable climate. Consequently, it is a beverage that is better consumed during the winter months. In conclusion, Canada’s coffee culture is diverse and continues to grow, as influenced by the trends and the population taste, and is an integral part of people’s lives and social activities across the country.

Canada Coffee Market Trend Analysis

The Rise of Coffee Subscriptions

• Coffee subscription services have also emerged as a novel way of coffee consumption in Canada, which has disrupted the market and developed alongside the general consumer demand for convenience and individualized experiences. Consumers in Canada are shifting towards subscribing to coffee delivery services that ensures that they get fresh and quality coffee beans to prepare their coffee.
• This model attracts busy people and coffee lovers who want to have their beverage at their disposal without the need to go to a café or a store. Bean Box, Craft Coffee, and many small roasters have sought to seize this opportunity by introducing flexible subscription packages that can be easily adapted to the consumers’ preferences.
• Of all the factors that have led to the increased uptake of coffee subscriptions in Canada, quality and variation are considered the main factors. Most subscription services offer carefully selected roasted coffees from small specialty roasters, allowing the subscribers to taste the premium and exceptional coffee that is not usually found in the local shops.
• This focus on quality is complemented by the prospect of trying out different tastes and blends, as most subscriptions provide information on the origin of the beans and how to prepare them. For the consumer, this process becomes a structured journey where simple daily coffee consumption becomes a way to discover and appreciate different cultures of coffee around the world.
• Also, it is evident that the subscription model is more sustainable and goes hand in hand with the growing consumer concern for the environment and sustainability of the supply chain. A common feature of coffee subscription services is that they emphasize their concern for fair trade, direct trade with farmers, and eco-friendly packaging. This is in line with the current Canadian consumers who are cultivating awareness with the ethical consequences of their consumption.
• Not only does the consumer get to savour good quality coffee but also gets to contribute to the improvement of the sustainability of the coffee industry and small scale farmers which makes it a noble cause. As the trend advances, it is set to extend a potential influence on the character of the Canadian coffee market by inspiring the improvement of standards and increased clarity of the sector.

Specialty Coffee Expansion

• The growth that specialty coffee brings to the market is another reason why it is a good fit for Canada; the people now prefer to buy better quality and sustainably sourced products. The consumers in Canada are becoming more conscious and selective about the type of coffee they are consuming, because of the availability of different flavors, origins and methods of preparing specialty coffee that is also gourmet and artisanal.
• This trend is well supported by the emergence of more coffee shops and roasters who focus on serving quality, single origin beans sourced from growers who follow sustainable practices. Therefore, there is a growing market for specialty coffee and other specialty coffee related services, products, and solutions to meet the needs of the growing customer base.
• Furthermore, the specialty coffee market also fits well with the current trends in Canadian health and sustainability that are affecting the population. People are not only expecting to get products of better taste but also the products that are organic and socially responsible. These values are reflected in specialty coffee, which is grown by adhering to the principles of sustainable farming and is marked with fair trade logos.
• Firms that can communicate their adherence to these principles within their organizations and market them externally can sustain brand reputation and stand out in the market. It also aligns with sustainability, which the younger population is sensitive to when making their purchases, based on the moral consequences that their decisions carry.
• Moreover, the development of specialty coffee can stimulate innovation in the context of the Canadian coffee market, as business actors will be motivated to expand the range of their offerings and find new ways of operating. For example, there is an increasing trend in on-the-go packaged or RTD specialty coffee drinks, and home-delivery coffee services, and direct-to-consumer business models that offer convenience without sacrificing quality.
• These innovations do not only satisfy the ever-changing demands of the consumers but also present more avenues for firms to gain more market share and revenues. This is why the specialty coffee segment is appealing to the Canadian coffee companies: it allows the companies to adapt to market changes and increase the market share by targeting new consumers for the sustainable growth of the coffee industry.

Canada Coffee Market Segment Analysis:

Canada Coffee Market Segmented based on Product Type, End Use, and Distribution Channel.

By Product Type, Coffee Pods and Capsules is expected to dominate the market during the forecast period

• In the context of the coffee market in Canada, the segment that has been experiencing an increased level of domination in the recent past is the coffee pod and capsule segment. This segment has grown tremendously and is popular due to convenience, variety, and a time-conscious customer base that requires consistent quick coffee fixes.
• Coffee pod or capsule brewing is a convenient way of preparing coffee with little mess, which is why it is preferred in homes and workplaces. Companies like Nespresso and Keurig have a well-developed coverage of the Canadian market, providing consumers with a vast choice of flavors and varying degrees of roast intensity.
• Another factor that can be attributed to the success of coffee pods and capsules is the fact that they are associated with two major trends currently popular among consumers, namely premiumization and personalisation. A lot of brands in this segment pay attention to quality, which is evident by the fact that they use specialty-grade coffee beans and other features such as organic or fair trade.
• This is in agreement with Canadians who are always looking for quality and are not shy to pay a premium for a better coffee experience whether at home or in the workplace. Moreover, the mentioned pod or capsule formats provide an opportunity to choose the flavor and intensity, which makes this type of system popular among the users of different experience levels, from those who do not drink coffee very often to the enthusiasts.
• In addition, the coffee pod and capsules segment has been well marketed and distributed in Canada with an improved access to the market. These products are commonly consumed and can be found in supermarkets, specialized coffee shops and online stores, thus having market coverage and accessibility. The factor of convenience coupled with well-orchestrated and appealing advertisements regarding the quality of the product and the efforts being made towards environmental conservation such as recyclable cups, makes the product even more attractive and firmly establishes the coffee brands as the market leaders in Canada. As the consumers, especially the young generation, shift their preferences towards convenience and quality, the coffee pods and capsules segment will continue to dominate, and in turn, fuel the growth and development of the industry.

By End Use, HoReCa segment held the largest share

• In the context of the consumption of coffee in Canada, the HoReCa segment has long been the most popular and widely used in hotels, restaurants, and cafes across the country. This is due to the active foodservice sector that is present in Canada encompassing various types of cafes, restaurants, hotels and other establishments that include coffee as one of their primary products.
• Coffee culture is well-established in Canada and the need for improved and quality coffee offerings in the dining and other social occasions has driven the HoReCa segment. Whether it is having a cup of coffee with your breakfast at a local restaurant or a cup of gourmet coffee served with your desert in a fine dining restaurant, coffee is an integral part of the Canadian dining experience and therefore is a major factor that has boosted this segment.
• Furthermore, the HoReCa segment is positively impacted by premiumization and specialty coffee in Canada, as discussed earlier. Some of the outlets within this segment are centered on offering specialty coffees with fine coffees, single estate, and specific brewing techniques. This corresponds with consumer trends of wanting high-quality and sustainably sourced coffee hence the demand within the HoReCa.
• Moreover, the specialty of the coffee sector that would include the ability to make a variety of coffee styles and preparations such as the espresso-based coffee, pour over, cold brew and many others make the sector more competitive in the market.
• Nevertheless, the retail segment is also a large player in the Canadian coffee market, making it another prominent outlet through which coffee is consumed. Supermarkets, specialty coffee shops, and internet sales are key in ensuring that coffee is available to consumers for home use. The retail channels include whole bean, ground coffee, instant coffee, and coffee pod and capsule consumers depending on the intensity they desire.
• There has been an increase noted in the retail segment; especially in specialty coffee formats serving gourmet and artisan coffee to consumers in their homes. Those brands that focus on the quality of the coffee, its sustainability, and the convenience of the locations have successfully penetrated the retail segment and, along with the focus on the HoReCa segment, have contributed to the general growth of the Canadian coffee market.

Active Key Players in the Canada Coffee Market

• Balzac's Coffee Roasters
• Blenz Coffee
• Bridgehead Coffee
• Coffee Culture Café & Eatery
• Java House
• McDonald's Canada (McCafé)
• Second Cup Coffee Co.
• Starbucks Canada
• Tim Hortons
• Van Houtte Coffee Services Inc.
• Other Key Players

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. CANADA COFFEE MARKET BY PRODUCT TYPE (2017-2030)
   1. CANADA COFFEE MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. WHOLE-BEAN
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2030F)
      3. Historic And Forecasted Market Size in Volume (2017-2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. GROUND COFFEE
   5. INSTANT COFFEE
   6. COFFEE PODS AND CAPSULES
7. CANADA COFFEE MARKET BY END USE (2017-2030)
   1. CANADA COFFEE MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. HORECA
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2030F)
      3. Historic And Forecasted Market Size in Volume (2017-2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. RETAIL
8. CANADA COFFEE MARKET BY DISTRIBUTION CHANNEL (2017-2030)
   1. CANADA COFFEE MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. SUPERMARKETS AND HYPERMARKETS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2030F)
      3. Historic And Forecasted Market Size in Volume (2017-2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. CONVENIENCE STORES
   5. SPECIALITY STORES
   6. ONLINE
   7. OTHERS
9. COMPANY PROFILES AND COMPETITIVE ANALYSIS
   1. COMPETITIVE LANDSCAPE
      1. Competitive Benchmarking
      2. CANADA COFFEE Market Share By Manufacturer (2023)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
   2. BALZAC'S COFFEE ROASTERS
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves And Recent Developments
      10. SWOT Analysis
   3. BLENZ COFFEE
   4. BRIDGEHEAD COFFEE
   5. COFFEE CULTURE CAFÉ & EATERY
   6. JAVA HOUSE
   7. MCDONALD'S CANADA (MCCAFÉ)
   8. SECOND CUP COFFEE CO.
   9. STARBUCKS CANADA
   10. TIM HORTONS
   11. VAN HOUTTE COFFEE SERVICES INC.
10. INVESTMENT ANALYSIS
11. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies