Canada Instant Coffee Market Forecasts from 2023 to 2028

Canada's Instant Coffee Market was estimated to be valued at US$214.723 million in 2021 and is anticipated to grow at a CAGR of 2.37% to attain a value of US$253.031 million by 2028.

The demand for instant coffee is increasing owing to the rising working-class population in the country coupled with the increasing disposable income of younger professionals. Seeing the time crunch various companies are launching products that can be prepared in less time. Such launches in the Canadian market are helping the market to expand in the country. The presence of local players such as Tim Hortons and Nestle is also one of the major factors driving the market growth of instant coffee in Canada.

Increase in Younger Professionals

As per the data from World Bank, people engaged in the labor force in Canada have increased year by year. The growth registered in the working class was 4% from the year 2020 to 2022, and this number is anticipated to increase in the coming year. The ease of making coffee instantly in the office and carrying one's preferred coffee to any place one want is one of the main reasons for this market growth. Not only at offices but also at home people are preferring instant coffee as only hot water is needed to prepare this coffee. Hence, in the projected period as people get busier in their work the market for instant coffee is expected to propel.

Brand's Initiatives

The variety of coffee options available to people on the go and the presence of a wide range of distribution channels in the country is supporting the market growth. Major players such as Starbucks, and Nestle are launching new products that make instant coffee for better in-home experiences, and the on-the-go beverage trend among younger professionals is helping the market to grow. To attract customers in March 2021, Starbucks teamed up with Aeroplan to offer reward points and to encourage consumers to use that reward points at the Starbucks outlet. Such new steps by the companies are encouraging consumers to buy more coffee products and take more on-the-go coffee with them and helping the market to grow in the projected period.

Ontario is Expected to Grow Significantly

The increasing demand for Instant Coffee across Ontario province is attributed to the rising number of working-class individuals & fast-paced corporate lifestyle where more preference is given to ready to eat & instant food products such as Instant coffee, thereby promoting the market growth.

The higher penetration of a large number of distributors of instant coffee has increased sales in Ontario province. Additionally, the rising adoption of e-commerce channels among the population to purchase household grocery items such as Instant coffee powders propelled the growth of the Ontario Instant Coffee Market. According to estimates from the Coffee Association of Canada, Instant coffee consumption increased by up to 87% by the year 2020 from 78% in 2019. This highlights the rising consumer preference for Instant coffee across all major provinces of Canada such as Ontario, and Manitoba among others, thereby promoting the growth of Ontario's instant coffee market.

Major Market Player

• Nestle is known to be leading the global coffee category and is regarded as the #1 coffee CPG company. The company's strategic growth drivers revolve around strengthening their core business, leading in innovation, accelerating cold coffee, driving out of the home, leading in sustainability, and unleashing digitalization.
• Starbucks Coffee Company VIA Instant coffee category includes VIA Sweetened Iced Coffee, VIA Veranda Blend, Starbucks VIA Instant Pike Place, and VIA Italian Roast among others.

Key Market Developments

• In April 2022, Nescafe launched a new sweet and creamy iced original in Canada. As per the company, it is the first all-in-one iced coffee sachet that helps refresh and cool along with a preparation time of only one minute.

Segmentation:

By Type

• Freeze-Dried Instant Coffee
• Spray-Dried Instant Coffee
• Others

By Distribution Channel

• Offline
• Foodservice
• Retail
• Supermarket/Hypermarket
• Convenience Store
• Others
• Online

By Province

• Manitoba
• Ontario
• Quebec
• Others