Description

“Coffee is deeply rooted in habit. However, this doesn’t mean there isn’t opportunity for innovation. Added benefits, flavours and formats are ways coffees can differentiate themselves from one another. In the eyes of Canadians, coffee has many uses, including as a pick-me-up, for moments to connect and even to take time for oneself. Coffee brands and shops can leverage these various opportunities to connect with Canadians by enhancing their daily routines and personal moments.”
– Joel Gregoire, Associate Director for Food & Drink, Canada

This Report looks at the following areas

  • Which coffee formats Canadians turn to
  • Change in perceived coffee consumption since the start of the pandemic
  • At which foodservice operators Canadians claim to get their coffee and what has changed since the start of the pandemic
  • What considerations are more (and less) important when choosing which coffees to drink and which coffee shops to visit
  • Which areas of innovation Canadians express more (and less) interest in
  • The perceived impact of rising prices on coffee drinking habits
  • How coffee-related habits vary across select demographic breaks

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
        • Executive Summary

            • Top Takeaways
              • Consumer trends
                • Winning share is difficult with coffee drinking habits so deeply rooted
                  • Brands can capitalize on coffee’s versatility
                    • Canadians respond to bolder flavours
                      • Competitive strategies
                        • Coffee’s value can be bolstered by added benefits
                          • Adapting to the post-pandemic work environment is crucial to the growth of coffee shops
                            • Coffee brands must offer budget-friendly solutions
                              • Market predictions
                                • Coffee needs to balance familiarity with newness
                                  • Despite economic uncertainty, coffee shops remain crucial to Canada’s foodservice culture
                                    • Figure 1: Category outlook for coffee and coffee shops, 2023-28
                                  • Opportunities
                                    • Beyond supplying a boost of energy, coffee can also support balance
                                      • It’s important to ‘chill out’ when communicating with younger adults
                                        • Climate change’s impact will amplify sustainability’s importance as it relates to coffee
                                          • The Quebec coffee consumer
                                            • Newer Canadians and coffee
                                            • Market Drivers

                                              • Coffee is not immune from inflation’s impact
                                                • Figure 2: Canadian year-over-year consumer price index (annualized inflation rate) for all items and food from retail, by month, January 2019-June 2023
                                                • Figure 3: Monthly average retail prices for coffee, January 2017 – May 2023
                                              • Many continue to work from home, yet foodservice has rebounded
                                                • Figure 4: Where employed Canadians work, 2022 vs 2023
                                                • Figure 5: Dollars spent at limited-services eating places in Canada by month, 2019-23
                                              • Climate change is likely to impact coffee production, yet Canadians are not overly-concerned
                                                • Figure 6: Global annual mean surface air temperature change, 1880-22
                                                • Figure 7: Important considerations when choosing coffee, by select countries, 2023
                                                • Figure 8: This is Atomo!, August 2021
                                            • Competitive Strategies and Market Opportunities

                                              • Opportunity to supply added benefits
                                                • Figure 9: Four Sigmatic Balance Adaptogen Ground Coffee with Ashwagandha (Canada), April 2023
                                                • Figure 10: Four Sigmatic Perform Ground Coffee with L-Theanine & Cordyceps Mushrooms (US), November 2022
                                                • Figure 11: Rokit Pods Immunity Boost Nespresso Compatible Pods (UK), March 2023
                                                • Figure 12: Laird Superfood Functional Focus Medium Roast Ground Peruvian Coffee (US), September 2021
                                                • Figure 13: Chamberlain Coffee Sleepy Sloth Decaf Blend Coffee (US), July 2022
                                                • Figure 14: Vital Proteins Unflavored Crystallized Coffee (US), February 2022
                                                • Figure 15: Innerbloom Elixir Cold Brew Coffee (New Zealand), March 2023
                                              • Less caffeine doesn’t have to mean no caffeine
                                                • Figure 16: Lost Sheep Coffee Fifty Fifty Half Caffeine Compostable Capsules (UK), March 2022
                                                • Figure 17: Kicking Horse Coffee Half Ass Decaffeinated Organic Whole Bean Coffee (Canada), February 2022
                                              • Sustainability and coffee pair well together in different ways
                                                • Figure 18: Café Royal CoffeeB Espresso Balls (France), March 2023
                                                • Figure 19: Segelwerk Lazy Organic Roast (Germany), April 2023
                                                • Figure 20: Kalamazoo Coffee Co Moonlight Maple Walnut Flavored Whole Bean Coffee (US), September 2022
                                                • Figure 21: PC President’s Choice Espresso Forte Coffee (Canada), March 2023
                                                • Figure 22: Nescafé Freeze Dried Soluble Coffee (Ireland), March 2023
                                              • Less tangible experiences and unique formats can be a differentiator for coffee brands
                                                • Figure 23: Coffee Uplifts People Honey Berry Mocha Java Medium Roast Ground Coffee (US), December 2021
                                                • Figure 24: Copper Cow Coffee Classic Black Premium Vietnamese Pour Over Coffee (US), March 2022
                                                • Figure 25: Mud Coffee Mudtrucker Coffee (US), October 2022
                                                • Figure 26: The Get Down Coffee Co. Drip Drip Whole bean Coffee (US), March 2023
                                                • Figure 27: Goshen Coffee Roaster Bright Eyed Breakfast Blend Light Roast Whole Bean (US), November 2022
                                                • Figure 28: Industry Beans Sparkling Single Origin Cold Brew Coffee (Australia), January 2023
                                                • Figure 29: Whole Foods Market Organic Dark Roast Coffee (US), July 2022
                                                • Figure 30: Starbucks Coffee On Tap Cold & Crafted Cold Brew Unsweetened Black Coffee (US), June 2022
                                              • Coffee makes a great base for a range of flavours
                                                • Figure 31: Starbucks Cold Brew Coconut Chocolate Flavored Coffee Concentrate (US), August 2022
                                                • Figure 32: Oatly! Camellia Flavour Oat Latte (China), March 2023
                                                • Figure 33: Good & Gather Hot Buttery Rum Coffee (US), December 2021
                                                • Figure 34: Giant Eagle Brown Sugar Bourbon Single Serve Brew Cups (US), December 2022
                                                • Figure 35: Barissimo Coffee Bourbon Pecan Coffee K-Cups (US), November 2021
                                                • Figure 36: Cookie Jar Coffee Peanut Butter Cookie Flavored Coffee (US), August 2022
                                                • Figure 37: International Delight Reese’s Iced Coffee (US), March 2022
                                              • Technology enables more automation at foodservice, but will this cheapen the experience?
                                                  • Figure 38: Coffee Robot C1 Pro V103, August 2023
                                                • The at home barista movement enables more opportunity for smarter coffee machines
                                                  • Figure 39: Artly Coffee Instagram post, July 2023
                                                  • Figure 40: Thomas Mair Design Instagram post, October 2022
                                              • The Coffee & Coffee Shop Consumer – Fast Facts

                                                • In-home vs Out-of-home Coffee Usage

                                                  • Nearly all Canadian adults drink coffee
                                                    • Figure 41: Where Canadians drink coffee, 2023
                                                  • Younger adults are as likely to drink coffee out-of-home as they are in-home
                                                    • Figure 42: Where Canadians drink coffee, by age, 2023
                                                    • Figure 43: Where Canadians drink coffee, newer Canadians vs overall, 2023
                                                    • Figure 44: Where Canadians drink coffee, by location, 2023
                                                • Types of Coffee Drunk at Home

                                                  • Ground coffee is the coffee of choice for Canadians when at home
                                                    • Figure 45: Types of coffee drunk at home, 2023
                                                  • Instant and RTD coffees hold particular appeal with younger adults
                                                    • Figure 46: Types of coffee drunk at home (select), by age, 2023
                                                    • Figure 47: Types of coffee drunk at home, newer Canadians vs overall, 2023
                                                    • Figure 48: Types of coffee drunk at home (select), by location, 2023
                                                • Change in at Home Coffee Usage By Type

                                                  • Claimed usage of single-cup pods has jumped versus before the pandemic
                                                    • Figure 49: Change in at home coffee usage among those who use each type, 2023
                                                  • Younger consumers are driving coffee’s growth at home
                                                    • Figure 50: Consumers who are drinking more coffee at home among those who use each type, by age, 2023
                                                    • Figure 51: Consumers who are drinking more coffee at home among those who use each, newer Canadians vs overall, 2023
                                                • What Matters When Purchasing Coffee

                                                  • Price and brand are foundational considerations
                                                    • Figure 52: What’s important when choosing which coffee to purchase, 2023
                                                    • Figure 53: Five Elephant House Blend Premium Quality Filter Coffee (Germany), October 2022
                                                  • Different preferences matter more to men
                                                    • Figure 54: What’s important when choosing which coffee to purchase (select), men vs women, 2023
                                                    • Figure 55: What’s important when choosing which coffee to purchase (select), by age, 2023
                                                    • Figure 56: What’s important when choosing which coffee to purchase (select), newer Canadians vs overall, 2023
                                                    • Figure 57: Importance of coffee being responsibly sourced, British Columbia vs overall, 2023
                                                • Where Coffee is Purchased Out-of-home

                                                  • Tim Hortons is the main choice for Canadians when getting coffee from foodservice
                                                    • Figure 58: Where coffee is purchased out-of-home, 2023
                                                  • Younger women are more likely to drink coffee from Starbucks
                                                    • Figure 59: Where coffee is purchased out-of-home (select), men vs women, 2023
                                                    • Figure 60: Where coffee is purchased out-of-home, by age, 2023
                                                    • Figure 61: Where coffee is purchased out-of-home (select), newer Canadians vs overall, 2023
                                                  • One’s education level impacts where they purchase coffee
                                                    • Figure 62: Where coffee is purchased out-of-home (select), by level of education, 2023
                                                    • Figure 63: Purchase of coffee at Tim Hortons, by work location, 2023
                                                  • Starbucks’ strength is in cities
                                                    • Figure 64: Where coffee is purchased out-of-home (select), by location, 2023
                                                    • Figure 65: Where coffee is purchased out-of-home, by region, 2023
                                                • Change in Where Coffee is Purchased Out-of-home by Operator

                                                  • Tim Hortons has best weathered the prolonged impact of the pandemic
                                                    • Figure 66: Change in where consumers get coffee out-of-home versus the start of the pandemic among those who visit each operator, 2023
                                                  • Demographic factors affect growth
                                                    • Figure 67: Visiting “more often” to get coffee versus the start of the pandemic among those who visit each operator, by age, 2023
                                                    • Figure 68: Visiting “more often” to get coffee versus the start of the pandemic among those who visit each operator (select), newer Canadians vs overall, 2023
                                                • What Matters When Choosing Coffee Shops

                                                  • Quality dominates when choosing which coffee shops to visit
                                                    • Figure 69: What’s important when choosing coffee shops, 2023
                                                  • Different considerations matter more to men and women
                                                    • Figure 70: What’s important when choosing coffee shops (select), men vs women, 2023
                                                    • Figure 71: What’s important when choosing coffee shops, by age, 2023
                                                    • Figure 72: What’s important when choosing coffee shops (select), newer Canadians vs overall, 2023
                                                    • Figure 73: What’s important when choosing coffee shops (select), student vs non-students, 2023
                                                  • City dwellers are more likely to consider a wider variety of factors
                                                    • Figure 74: What’s important when choosing coffee shops (select), by location, 2023
                                                • Areas of Interest in Coffee

                                                  • Coffee with ‘mental benefits’ ranks surprisingly high as an area of interest
                                                    • Figure 75: Areas of interest when it comes to coffee, 2023
                                                  • Women show more interest in a number of areas
                                                    • Figure 76: Areas of interest when it comes to coffee (select), men vs women, 2023
                                                    • Figure 77: Areas of interest when it comes to coffee, by age, 2023
                                                    • Figure 78: Areas of interest when it comes to coffee (select), newer Canadians vs overall, 2023
                                                • Attitudes toward the Pandemic’s Impact on Coffee

                                                  • Half of Canadians say the pandemic has affected their coffee shop behaviours
                                                    • Figure 79: Attitudes toward the impact of the pandemic on coffee habits, 2023
                                                  • Working from home more often has impacted perceived coffee drinking habits
                                                    • Figure 80: Attitudes toward the impact of the pandemic on coffee habits (% agree), by work location, 2023
                                                  • The pandemic has had a greater impact on younger consumers’ coffee-related behaviours
                                                    • Figure 81: Attitudes toward the impact of the pandemic on coffee habits (% agree), by age, 2023
                                                    • Figure 82: Attitudes toward the impact of the pandemic on coffee habits (% agree), men vs women, 2023
                                                    • Figure 83: Attitudes toward the impact of the pandemic on coffee habits (% agree), newer Canadians vs overall, 2023
                                                • Attitudes toward Budgeting and Coffee

                                                  • Nearly all consumers agree brewing coffee at home is an effective way to save
                                                    • Figure 84: Attitudes towards budgeting and coffee, 2023
                                                  • Age and perceived financial health affect whether consumers are willing to compromise on the quality of their coffee
                                                    • Figure 85: Willingness to compromise on the quality of my coffee to save money (% agree), by age, 2023
                                                    • Figure 86: Willingness to compromise on the quality of my coffee to save money (% agree), by perceived financial health, 2023
                                                • Attitudes toward Coffee Drinking Habits

                                                  • Coffee can be considered the Groundhog Day beverage
                                                    • Figure 87: Attitudes towards coffee drinking habits, 2023
                                                    • Figure 88: Attitudes towards coffee drinking habits (% agree), by age, 2023
                                                • Attitudes toward Coffee Occasions

                                                  • Coffee offers more than an energy boost
                                                    • Figure 89: Attitudes toward coffee occasions, 2023
                                                  • Younger consumers are less likely to view coffee as being a beverage to relax with
                                                    • Figure 90: “It’s difficult for me to relax when I drink coffee” (% agree), by age, 2023
                                                    • Figure 91: “It’s difficult for me to relax when I drink coffee” (% agree), fathers vs mothers vs overall, 2023
                                                • Appendix – Data Sources and Abbreviations

                                                  • Data sources
                                                    • Consumer survey data
                                                      • Abbreviations

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