Soft Drinks - Canada

The Soft Drinks market in Canada has experienced significant growth in recent years, driven by changing customer preferences and a variety of market trends.

Customer preferences: In Canada, consumers have shown a growing preference for healthier beverage options, such as low-sugar or sugar-free soft drinks, as well as natural and organic alternatives. This shift in consumer preferences has led to an increase in demand for products that are perceived as healthier and more environmentally friendly. Additionally, there has been a rise in demand for functional beverages, such as energy drinks and sports drinks, as consumers seek products that provide specific health benefits or enhance performance.

Trends in the market: One of the key trends in the Canadian soft drinks market is the growing popularity of sparkling water and flavored water. As consumers become more health-conscious, they are seeking alternatives to traditional carbonated soft drinks that are high in sugar and calories. Sparkling water and flavored water offer a refreshing and healthier option, without compromising on taste. This trend is further fueled by the increasing number of beverage companies introducing new and innovative flavors and packaging formats to cater to consumer preferences. Another trend in the Canadian soft drinks market is the rise of craft and artisanal beverages. Consumers are increasingly interested in unique and locally produced soft drinks that offer a premium and authentic experience. Craft sodas, kombucha, and cold-pressed juices are gaining popularity as consumers seek out products that are made with high-quality ingredients and have a distinct flavor profile. This trend is driven by a desire for more personalized and differentiated beverage options.

Local special circumstances: Canada's diverse population and multicultural society have also influenced the soft drinks market. With a large immigrant population, there is a demand for soft drinks that cater to different cultural tastes and preferences. This has led to the introduction of a wide range of ethnic beverages in the market, such as Asian or Middle Eastern-inspired drinks. Additionally, Canada's bilingualism has prompted beverage companies to offer products in both English and French, ensuring they can effectively reach and engage with consumers in different regions of the country.

Underlying macroeconomic factors: The Canadian economy has been relatively stable in recent years, with a growing middle class and increasing disposable incomes. This has contributed to higher consumer spending on non-essential items, including soft drinks. Additionally, the country's strong food and beverage industry, along with favorable trade agreements, has facilitated the growth of the soft drinks market. The availability of a wide range of domestic and international brands, as well as the presence of well-established distribution networks, has further supported market growth. In conclusion, the Soft Drinks market in Canada is experiencing growth due to changing customer preferences, including a shift towards healthier and more natural options. The market is also influenced by trends such as the popularity of sparkling and flavored water, as well as the rise of craft and artisanal beverages. Canada's multicultural society and strong economy contribute to the development of a diverse and thriving soft drinks 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.