Canada Non-alcoholic Beverages Market Report 2024
In times of high inflation, Canadians seek ways to cut costs, with many claiming they turn to water, including tap water, to save money on groceries.
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Executive summary
- What you need to know
- Consumer trends: key takeaways
- Market predictions
- Opportunities
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Consumer Insights
- Consumer fast facts
- Non-alcoholic beverage usage
- Water and coffee are cornerstones of Canadian adults' drinking habits
- Graph 1: beverages typically consumed, 2024
- Energy drinks exhibit the most pronounced shift in usage
- Graph 2: beverages typically consumed, 2022 & 2024
- Generation impacts beverage preferences
- Graph 3: beverages typically consumed, by generation, 2024
- Tea and energy drinks benefit from new Canadians' arrival
- Graph 4: beverages typically consumed, new vs existing Canadians, 2024
- Parenthood impacts which beverages individuals are more likely report drinking
- Graph 5: beverages typically consumed, parents vs non-parents, 2024
- Water leads in reported growth. CSDs are challenged.
- Graph 6: drinking beverages more often, the same or less often versus last year, 2024
- Drinking tap water is an easy way for consumers to save on groceries
- Get more from water
- Gen Z represents a critical target per their propensity to drink most beverages more often
- Graph 7: drinking beverages more often versus last year, by generation, 2024
- Newer Canadians represent growth opportunities for beverages
- Graph 8: drinking beverages more often versus last year, new vs existing Canadians, 2024
- Parents are more likely to turn to a wider variety of beverages more often
- Graph 9: drinking beverages more often versus last year, by parental status, 2024
- Occasions when beverages are consumed
- A warming planet may broaden hydration's appeal
- Graph 10: occasions when non-alcoholic drinks are consumed most often, 2024
- Occasions and specific beverage categories
- Usage occasions highlight the importance of focusing on select benefits to younger generations
- Graph 11: occasions when non-alcoholic drinks are consumed most often, by generation, 2024
- Beverages play a prominent role with students for work, play and rest
- Graph 12: occasions when non-alcoholic drinks are consumed most often, students vs non-students, 2024
- Claims that resonate
- Low sugar remains the most important claim for consumers
- Graph 13: claims that matter when choosing non-alcoholic beverages to drink, 2024
- Further commentary on claims of importance
- Connect with Gen Zs using added functionality
- Graph 14: claims that matter when choosing non-alcoholic beverages to drink, by generation, 2024
- New Canadians' interests echo the interests of younger generations
- Graph 15: claims that matter when choosing non-alcoholic beverages to drink, new vs existing Canadians, 2024
- Examples of drinks with enhanced benefits
- Innovations of interest
- The eyes have it
- Graph 16: non-alcoholic beverage innovations of interest, 2024
- Further commentary on areas of interest
- Innovative drinks that highlight areas of interest
- Younger generations represent a more pertinent target for beverage innovation
- Graph 17: non-alcoholic beverage innovations of interest, by generation, 2024
- Promoting collagen, and thus skin health, can be a way to better connect with women
- Graph 18: non-alcoholic beverage innovations of interest, men vs women, 2024
- Saving on beverages
- Beverage brands should take action amid price sensitivity
- Graph 19: attitudes towards saving on beverages, 2024
- Different generations veer towards different ways to save
- Graph 20: attitudes towards saving on beverages (any agree), by generation, 2024
- Price holds more influence in households with children
- Graph 21: "the price is more important than the brand when choosing which beverages to buy" (any agree), by age of children in the household, 2024
- Brands have more equity (versus price) with those better off financially
- Graph 22: attitudes towards saving on beverages (any agree), by financial situation, 2024
- Tap water is less likely to be viewed as a way to save among new Canadians
- Graph 23: "drinking tap water instead of store-bought beverages is a good way to save money on groceries" (any agree), new vs existing Canadians, 2024
- Drinking habits
- Align beverage marketing with lifestyle trends to capture consumer interest
- Graph 24: attitudes towards drinking habits, 2024
- The more the merrier: children's needs influence parental drinking habits
- Graph 25: "what my kids drink influences what I drink" (any agree), by number of children under 18 living in household, 2024
- Graph 26: "what my kids drink influences what I drink" (any agree), parents with children under 18 at home by age of children, 2024
- Capitalize on lifestyle branding with younger generations
- Graph 27: attitudes towards drinking habits (any agree), by generation, 2024
- Opportunity exists to influence new Canadians' drinking habits
- Graph 28: attitudes towards drinking habits (any agree), new vs existing Canadians, 2024
- Social media's influence on beverage choices
- Social media's influence on beverage innovation requires perspective
- Graph 29: attitudes towards beverages and social media's influence, 2024
- Activate social media strategies to reach younger generations
- Graph 30: attitudes towards beverages and social media's influence (any agree), by generation, 2024
- Examples of where companies can take inspiration from and how they can leverage it
- Younger men are more likely to be swayed by social media when it comes to beverage trends
- Graph 31: attitudes towards beverages and social media's influence (any agree), men vs women 18-34 years old, 2024
- Students are more reachable through social media
- Graph 32: attitudes towards beverages and social media's influence (any agree), students vs non-students, 2024
- Global influencers can help beverage brands connect with new Canadians
- Graph 33: attitudes towards beverages and social media's influence (any agree), new vs existing Canadians, 2024
- Health and wellness in beverages
- Capitalize on the demand for healthier beverages at QSR
- Graph 34: attitudes towards health, wellness and beverages, 2024
- Millennials and Gen Xers are most likely to look for healthier beverage options at QSR
- Graph 35: attitudes towards health, wellness and beverages (any agree), by generation, 2024
- Students are more likely to cut back on alcohol consumption
- Graph 36: "I'm trying to cut back on the amount of alcoholic beverages I drink for my overall health" (any agree), students vs non-students, 2024
- New Canadians represent a challenge for alcoholic beverages
- Graph 37: "I'm trying to cut back on the amount of alcoholic beverages I drink for my overall health" (any agree), new vs existing Canadians, 2024
- Case study: Carlsberg diversifies to align with more moderate drinkers
- Beverages and sustainability
- Many express concern about climate change's impact on beverage production
- Graph 38: attitudes towards sustainability and beverages, 2024
- A shifting climate impacts coffee prices
- Younger generations are more likely to express concern over climate change and profess greater openness to lab-grown options
- Graph 39: attitudes towards sustainability and beverages, (any agree), by generation, 2024
- Younger men express greater interest in lab-grown beverages
- Graph 40: attitudes towards sustainability and beverages, (any agree), men and women 18-34 years old vs overall, 2024
- Real-world examples from 'the lab'
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Competitive strategies
- Launch activity and innovation
- Nutritional and meal replacement drinks led launch activity in the last year
- Graph 41: share of non-alcoholic beverage launches by sub-category, 2023-24
- Mixes and flavour enhancers add value to Canada's most popular beverage − water
- Cater to Gen Zs with a different type of 'pop'
- Brands can tailor their targets to 'gen-eralize' appeal
- Dirty soda: an evolution of the classic 'float'?
- Mox artisanal alcohol-free mocktails offer a fun alternative to alcoholic beverages
- Premiumize function
- Marketing and advertising
- Use 'fan truths' to engage beverage consumers around their passions
- Using 'solarpunk' to convey a vision of a more sustainable world
- Chobani's solarpunk-inspired video
- Leverage more established beverages in novel ways
- Opportunities
- Gen Alpha to seek more flexible spaces
- The Stanley Cup: bringing aesthetics to hydration for Gen Alpha
- Permit Gen Alpha to play with their food (and drinks)
- GLP-1 drugs: is there an opportunity for beverages?
- Consumers look to companies to take the lead on sustainability
- Graph 42: most responsible for improving sustainability, 2022
- Communicating carbon reduction in beverages
- Will tech enable a bottle-free future?
- Hydration +: make everyday hydration more impactful with added benefits
- Beverages should address the body-mind connection
- Graph 43: eating healthy being important to physical and mental wellbeing, 2023
- Energy drinks 'smarten up'
- No added sugar doesn't have to mean 'no fun'
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The Market
- Inflation has been tamed
- Graph 44: annual change in CPI and retail food prices by month, 2019-24
- Canadians continue to feel the impact of higher food and drink prices
- Graph 45: issues consumers have been affected by over the last two months, 2023-24
- Non-alcoholic beverage sales show growth
- Graph 46: non-alcoholic drink sales, 2022-23
- Influence has shifted in the media landscape
- Graph 47: source(s) of video or audio content in past seven days, 2023
- Immigration drives Canada's population growth, with India having the most influence
- Graph 48: source countries of permanent residents admitted to Canada, 2022
- As the planet warms, supply chains stand to be impacted
- Graph 49: global land-ocean temperature index – annual mean, 1973-2023
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Appendix
- Market definition
- Consumer research methodology
- Generations
- Abbreviations and terms
In times of high inflation, Canadians seek ways to cut costs, with many claiming they turn to water, including tap water, to save money on groceries. However, beverages can offer consumers value beyond price savings. Wellness, innovative flavours and textures, as well as sustainability, are important considerations in this regard.
Priorities also vary by generation. Baby Boomers tend to focus more on reducing sugar intake, while Gen Z adults prioritize energy-boosting offerings. Gen Z also shows a strong interest in exploring innovative drink options, including wellness benefits, unique textures, carbon neutrality and flavour concentrates that enhance the experience of drinking water.
Drinking habits are often well-established, with little change in stated market penetration among beverage categories compared to 2022. Therefore, understanding consumer preferences is crucial for companies looking to encourage shoppers to switch brands and adjust their habits.
The consumer insights in this Report can help craft relevant strategic positioning and help brands realize their fair share of Canada’s competitive beverage market.
This report looks at the following areas:
- Percent of Canadians who drink beverages by category and how consumption has changed
- Occasions when consumers most often drink beverages
- Claims that resonate with Canadians and innovations of interest in beverages
- Attitudes towards saving on beverages, social media’s influence, health and wellness and sustainability
- Novel product launches in Canada and elsewhere
- Notable opportunities beverage innovations can support
Beverage brands succeed by meeting consumer demands and embracing a consumer-centric approach, which is essential for standing out in today's competitive market.
Joel Gregoire, Associate Director of Food & Drink Reports
Market Definitions
For this Report on non-alcoholic beverages, Mintel asked Canadian adults what categories they typically drink at home or at/from foodservice.
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