Ready-to-Drink (RTD) Coffee & Tea - Canada

The Ready-to-Drink (RTD) Coffee & Tea market in Canada is experiencing significant growth and development.

Customer preferences: Canadian consumers are increasingly seeking convenient and on-the-go beverage options, which has led to a rise in demand for RTD coffee and tea products. These beverages offer a quick and easy solution for busy individuals who want to enjoy their favorite caffeinated beverages without the need for brewing or preparation. Additionally, there is a growing trend towards healthier beverage choices, with consumers looking for low-sugar and natural ingredients in their RTD coffee and tea products.

Trends in the market: One of the key trends in the RTD coffee and tea market in Canada is the introduction of innovative flavors and product varieties. Manufacturers are constantly launching new and unique flavors to cater to the diverse tastes of Canadian consumers. This includes flavors inspired by international cuisines, as well as seasonal offerings that align with popular trends and holidays. Furthermore, there is a growing demand for functional RTD coffee and tea products, such as those infused with vitamins, antioxidants, and other health-promoting ingredients.

Local special circumstances: Canada's diverse population and multicultural society contribute to the unique preferences and tastes in the RTD coffee and tea market. Manufacturers are adapting their product offerings to cater to different cultural backgrounds and preferences, ensuring a wide range of options for consumers. Additionally, Canada's climate and geography play a role in shaping consumer preferences. Cold and refreshing RTD beverages are particularly popular during the hot summer months, while warm and comforting options are favored during the colder winter season.

Underlying macroeconomic factors: The growth of the RTD coffee and tea market in Canada can be attributed to several macroeconomic factors. Firstly, the increasing urbanization and busy lifestyles of Canadians have led to a higher demand for convenient and ready-to-consume beverages. Additionally, the rise of e-commerce and online grocery shopping has made it easier for consumers to access a wide range of RTD coffee and tea products. Furthermore, the increasing awareness of health and wellness among Canadians has led to a shift towards healthier beverage choices, driving the demand for low-sugar and natural RTD options. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Canada is thriving due to consumer preferences for convenience, health-consciousness, and diverse flavor options. The introduction of innovative products, adaptation to local preferences, and underlying macroeconomic factors are all contributing to the growth and development of this market.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.