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.
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.
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.
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 for hot drinks recorded positive volume growth in 2024, driven by other hot drinks and coffee.
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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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.
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Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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