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Tea and Coffee - Canada - September 2014

Published By :

Mintel

Published Date : Sep 2014

Category :

Beverages

No. of Pages : 289 Pages


Appealing to older coffee drinkers, for example via pods/capsules which use intense roasts, could help to tap into this flavour interest in a more targeted manner.
Table of Content

Introduction
Definition
Excluded
Abbreviations

Executive Summary
The market
Figure 1: Forecast of Canada retail sales of tea and coffee, by value 2009-19
Figure 2: Forecast of Canada retail sales of tea and coffee, by volume, 2009-19
Market factors
Canada’s population is expected to age in the coming years
Growing global demand and unseasonal weather drive up coffee prices
Tea prices have decreased over the past two years
The consumer
82% of Canadian adults drink coffee, while 79% drink tea
Figure 3: Usage of types of coffee, June 2014
Figure 4: Usage of types of tea, June 2014
52% of Canadians drink coffee at least once a day
Flavour is the leading choice factor
Figure 5: Choice factors when purchasing tea, coffee and hot chocolate, June 2014
Tea relies on in-home consumption
Figure 6: Locations for drinking tea, coffee and hot chocolate, June 2014
Almost half of coffee drinkers currently use single-serve machines
Half of coffee drinkers are prepared to take their time for an improved taste
Figure 7: Attitudes towards coffee, June 2014
43% of tea drinkers enjoy experimenting with different flavours of tea
Figure 8: Attitudes towards tea, June 2014
What we think

Insights and Issues
Increasing popularity of coffee pods could bring down prices
The facts
The implications
Appealing to older palates with hot beverages
The facts
The implications
Specialized teas can increase consumption in and out of the home
The facts
The implications
Highlighting the qualities of ethical tea and origins
The facts
The implications

Trend Application
Trend: Sense of the Intense
Trend: Help Me Help Myself
Trend: Prove it

Market Drivers
Key points
Canada’s population is expected to age in the coming years
Figure 9: Projected trends in the age structure of the Canada population, 2014-19
Figure 10: Estimated share of population in Canada, by ethnicity
Growing global demand and unseasonal weather drive up coffee prices
Figure 11: Composite indicator Prices - US cents per pound of coffee, 2012- 2014 (August)
Canada’s open market for coffee and the popularity of coffee shops
Tea prices have decreased over the past two years
Figure 12: Monthly tea prices: US cents per kg, 2012- August 2014
Consumer confidence and disposable income remain resolute
Figure 13: Consumer Confidence Index, monthly, January 2008-May 2014
Figure 14: Household disposable incomes and savings in Canada, 2008-14

Strengths and Weaknesses
Strengths
Weaknesses

Who’s Innovating?
Key points
Pre-filled coffee formats continue to thrive, driven by new pod launches
Figure 15: New product launches in the Canadian coffee market, by format, 2011-14
Private label coffee launches have increased
Figure 16: New product launches in the Canadian coffee market, private label vs branded, 2011-14
Starbucks jumps to the top of the list of innovators
Figure 17: Share of new product launches within the Canada coffee market, by company, 2011-14*
Coffee pods emerging as a key driver for NPD activity
Other selected pod/capsule innovations
Relatively little NPD activity in the tea market
Figure 18: New product launches in the Canadian tea market, by format, 2011-14
Figure 19: New product launches in the Canadian tea market, private label vs branded, 2011-14
Traditional Medicinals significantly ramps up NPD in 2014
Figure 20: Share of new product launches within the Canada tea market, by company, 2011-14*

Market Size and Forecast
Key points
Canada’s tea and coffee market remains in good health
Figure 21: Canada retail value and volume sales of tea and coffee, 2009-19
Figure 22: Forecast of Canada retail sales of tea and coffee, by volume, 2009-19
Values expected to continue a steady rise
Figure 23: Forecast of Canada retail sales of tea and coffee, by value 2009-19
Forecast methodology

Market Segmentation and Share
Key points
Coffee continues on a strong and stable growth path
Figure 24: Canada value and volume retail sales of coffee, at current and constant prices, 2009-19
Figure 25: Forecast of Canada retail sales of coffee, by volume 2009-19
Figure 26: Forecast of Canada retail sales of coffee, by value 2009-19
Kraft leads the way in fresh coffee
Figure 27: Retail market share for coffee in Canada, by volume 2010-13
Figure 28: Retail market share for coffee in Canada, by value, 2010-13
Tea growth is slow but steady
Figure 29: Canada value and volume retail sales of tea, at current and constant prices, 2009-19
Figure 30: Forecast of Canada retail sales of tea, by volume 2009-19
Figure 31: Forecast of Canada retail sales of tea, by value 2009-19
Tata leads the way but ‘other’ brands are boosting their share
Figure 32: Retail market share for tea in Canada, by volume, 2010-13
Figure 33: Retail market share for tea in Canada, by value, 2010-13

Companies and Products
Kraft Canada Inc.
Overview and company information
Recent activity and innovation
Keurig Canada/Green Mountain Canada
Overview and company information
Recent activity and innovation
Folgers
Overview and company information
Recent activity and innovation
Nestlé
Overview and company information
Recent activity and innovation
Tata Global Beverages
Overview and company information
Recent activity and innovation
Unilever
Overview and company information
Recent activity and innovation
Twinings
Overview and company information
Recent activity and innovation

Brand Research and Social media - Coffee
Key findings
Market overview
Key social media metrics
Figure 34: Key social media metrics, August 2014
Brand usage and awareness
Figure 35: Brand usage and awareness for selected coffee brands, August 2014
Interactions with coffee brands
Figure 36: Interactions with selected coffee brands, August 2014
Leading online campaigns
What we think
Online conversations
Figure 37: Online conversations for selected coffee brands, by day, August 27, 2013-August 27, 2014
Where are people talking about coffee brands?
Figure 38: Online conversations for selected coffee brands, by page type, August 27, 2013-August 27, 2014
What are people talking about?

The Consumer - Usage of Tea, Coffee and Hot Chocolate
Key points
82% of Canadian adults drink coffee…
Figure 39: Usage of types of coffee, June 2014
while 79% drink tea…
Figure 40: Usage of types of tea, June 2014
and half drink hot chocolate
57% of Canadians drink five or more types of hot beverages
Figure 41: Repertoire of types of hot beverages consumed, June 2014

The Consumer - Frequency of Drinking Tea, Coffee and Hot Chocolate
Key points
52% of Canadians drink coffee at least once a day
Figure 42: Frequency of consumption of types of coffee, June 2014
Figure 43: Number of coffee cups drunk per day, June 2014
30% drink tea at least once a day
Figure 44: Frequency of consumption of types of tea, June 2014
Figure 45: Number of tea cups drunk per day, June 2014
Only 5% drink hot chocolate daily
Figure 46: Frequency of consumption of hot chocolate, June 2014

The Consumer - Choice Factors
Key points
Flavour is the leading choice factor
Figure 47: Choice factors when purchasing tea, coffee and hot chocolate, June 2014
Ease of preparation and a well-known brand resonate with over a third
Other factors only have niche importance

The Consumer - Locations for Consumption
Key points
Summary of locations for drinking tea, coffee and hot chocolate
Figure 48: Locations for drinking tea, coffee and hot chocolate, June 2014
Tea relies on in-home consumption
Coffee is enjoyed in various locations
Hot chocolate follows a similar usage trend as tea

The Consumer - Ownership of and Attitudes towards Single-Serve Machines
Key points
Almost half of coffee drinkers currently use single-serve machines…
Figure 49: Ownership of single-serve coffee makers, June 2014
while a further 21% are interested in them
CHAID Methodology
Young parents drive ownership of single-serve coffee machines
Figure 50: Ownership of single-serve coffee machines - CHAID tree output, June 2014
Green tea drinkers are willing to pay more for ethical teas
Figure 51: Green tea consumers - CHAID tree output, June 2014
Price is the main barrier for those who are disinterested in single-serve machines
Figure 52: Reasons for not being interested in buying single-serve coffee makers, June 2014

The Consumer - Attitudes towards Coffee
Key points
Summary of attitudes towards coffee
Figure 53: Attitudes towards coffee, June 2014
Half of coffee drinkers are prepared to take their time
Figure 54: Attitudes towards the taste and quality of coffee, June 2014
The importance of the ‘caffeine hit’
Figure 55: Attitudes towards the caffeine content of coffee, June 2014
A third of coffee drinkers are interested in trying new types of coffee
Figure 56: Attitudes towards innovation and ranges of coffee, June 2014

The Consumer - Attitudes towards Tea
Key points
Summary of attitudes towards tea
Figure 57: Attitudes towards tea, June 2014
43% of tea drinkers enjoy experimenting with different flavours of tea
Figure 58: Attitudes towards the flavour of tea, June 2014
Two in five tea drinkers think that tea is healthier than coffee
Figure 59: Attitudes towards the health qualities of tea, June 2014
A third of tea drinkers think that specialty teas are worth paying more for
Figure 60: Attitudes towards the quality/price of tea, June 2014
Only 13% find using tea bags too time-intensive
Figure 61: Attitudes towards the convenience of making tea using tea bags, June 2014

The Consumer - Hot Beverages and Chinese Canadians
Key points
Chinese Canadians are highly engaged with hot beverages
Figure 62: Types of tea consumed: overall vs Chinese Canadians, June 2014
Figure 63: Types of coffee consumed: overall vs Chinese Canadians, June 2014
Figure 64: Number of types of coffee consumed: overall vs Chinese Canadians, June 2014
Chinese Canadians score around the average for choice factors but show greater variance for locations for consumption
Flavour can be an effective way of reaching Chinese Canadians
Figure 65: Attitudes towards coffee: overall vs Chinese Canadians, June 2014
Figure 66: Attitudes towards tea: overall vs Chinese Canadians, June 2014

The Consumer - Target Groups
Key points
Four target groups
Figure 67: Target groups, June 2014
Flavour Fans (23%)
Connoisseurs (28%)
Disengaged (30%)
Pod Lovers (19%)

Appendix - Market Size and Forecast
Figure 68: Best- and worst-case forecasts for the Canada tea and coffee retail market, by value, 2014-19
Figure 69: Best- and worst-case forecasts for the Canada tea and coffee retail market, by volume, 2014-19

Appendix - Market Segmentation and Share
Figure 70: Best- and worst-case forecasts for the Canada tea retail market, by value, 2014-19
Figure 71: Best- and worst-case forecasts for the Canada tea retail market, by volume, 2014-19
Figure 72: Best- and worst-case forecasts for the Canada coffee retail market, by value, 2014-19
Figure 73: Best- and worst-case forecasts for the Canada coffee retail market, by volume, 2014-19

Appendix - Brand Research and Social media
Brand usage or awareness
Figure 74: Brand usage or awareness, June 2014
Figure 75: Maxwell House usage or awareness, by demographics, June 2014
Figure 76: Nabob usage or awareness, by demographics, June 2014
Figure 77: Nescafé usage or awareness, by demographics, June 2014
Figure 78: Folgers usage or awareness, by demographics, June 2014
Figure 79: Dolce Gusto usage or awareness, by demographics, June 2014
Figure 80: Lavazza usage or awareness, by demographics, June 2014
Activities done
Figure 81: Activities done, June 2014
Key social media metrics
Figure 82: Brand Name key social media metrics - Folgers, September 2014
Figure 83: Brand Name key social media metrics - Maxwell House, September 2014
Figure 84: Brand Name key social media metrics - Nescafé, September 2014
Figure 85: Brand Name key social media metrics - Nabob, September 2014
Figure 86: Brand Name key social media metrics - Dolce Gusto, September 2014
Figure 87: Brand Name key social media metrics - Lavazza, September 2014

Appendix - The Consumer - Usage and Frequency of Drinking Tea, Coffee and Hot Chocolate
Figure 88: Usage of tea, coffee and hot chocolate, June 2014
Figure 89: Any usage of tea (net), by demographics, June 2014
Figure 90: Usage of standard tea, by demographics, June 2014
Figure 91: Usage of specialty tea, by demographics, June 2014
Figure 92: Usage of green tea, by demographics, June 2014
Figure 93: Usage of fruit/herbal tea, by demographics, June 2014
Figure 94: Usage of powdered tea mix, by demographics, June 2014
Figure 95: Usage of tea pods/capsules, by demographics, June 2014
Figure 96: Usage of ready to drink iced tea, by demographics, June 2014
Figure 97: Usage of any coffee (net), by demographics, June 2014
Figure 98: Usage of instant coffee, by demographics, June 2014
Figure 99: Usage of regular coffee, by demographics, June 2014
Figure 100: Usage of specialty hot coffee (eg latte, cappuccino), by demographics, June 2014
Figure 101: Usage of iced coffee, by demographics, June 2014
Figure 102: Usage of specialty cold coffee, by demographics, June 2014
Figure 103: Usage of coffee pods/capsules, by demographics, June 2014
Figure 104: Usage of chilled ready-to-drink coffee, by demographics, June 2014
Figure 105: Usage of hot chocolate, by demographics, June 2014
Figure 106: Repertoire of usage of tea, coffee and hot chocolate, by demographics, June 2014
Figure 107: Average number of cups drunk of tea, coffee and hot chocolate, June 2014
Figure 108: Number of cups drunk of tea, coffee and hot chocolate, by demographics, June 2014

Appendix - The Consumer - Choice Factors
Figure 109: Choice factors when buying tea, coffee and hot chocolate, June 2014
Figure 110: Most popular choice factors when buying tea, coffee and hot chocolate, by demographics, June 2014
Figure 111: Other choice factors when buying tea, coffee and hot chocolate, by demographics, June 2014

Appendix - The Consumer - Locations for Consumption
Figure 112: Locations for drinking tea, coffee and hot chocolate in the past month, June 2014
Figure 113: Most popular locations for drinking tea, by demographics, June 2014
Figure 114: Other locations for drinking tea, by demographics, June 2014
Figure 115: Most popular locations for drinking coffee, by demographics, June 2014
Figure 116: Other locations for drinking coffee, by demographics, June 2014
Figure 117: Most popular locations for drinking hot chocolate, by demographics, June 2014
Figure 118: Other locations for drinking hot chocolate, by demographics, June 2014

Appendix - Consumer - Ownership of and Attitudes towards Single-Serve Machines
Figure 119: Ownership of single-serve coffee makers, June 2014
Figure 120: Ownership of single-serve coffee makers, by demographics, June 2014
Figure 121: Coffee drinkers - CHAID table output, June 2014
Figure 122: Tea Drinks - CHAID table output, June 2014
Figure 123: Reasons for not being interested in a single-serve coffee maker, June 2014
Figure 124: Main reasons for not being interested in a single-serve coffee maker, by demographics, June 2014
Figure 125: Other reasons for not being interested in a single-serve coffee maker, by demographics, June 2014

Appendix - The Consumer - Attitudes towards Coffee
Figure 126: Attitudes towards coffee, June 2014
Figure 127: Agreement with the statements ‘I am happy to take more time preparing coffee if I know that it will taste better’ and ‘I think that many flavoured coffees taste too sweet’, by demographics, June 2014
Figure 128: Agreement with the statements ‘I rely on the caffeine hit of coffee to get me through the day’ and ‘I would pay more for ground/whole bean coffee in packaging that guarantees freshness’, by demographics, June 2014
Figure 129: Agreement with the statements ‘I am interested in seasonal/limited time products (eg iced coffees in summer, festive drinks)’ and ‘I am interested in recreating coffee shop style drinks at home’, by demographics, June 2014
Figure 130: Agreement with the statements ‘I would be interested in trying flavoured instant coffee’ and ‘Coffee pod/capsule machines are worth the cost for the better quality’, by demographics, June 2014
Figure 131: Agreement with the statements ‘Information about product origins reassures me of high quality’ and ‘I sometimes find it hard to choose coffee due to the wide range of choice’, by demographics, June 2014
Figure 132: Agreement with the statements ‘I prefer the taste of flavoured coffees to standard coffee’ and ‘I prefer decaffeinated coffee to standard coffee’, by demographics, June 2014

Appendix - The Consumer - Attitudes towards Tea
Figure 133: Attitudes towards tea, June 2014
Figure 134: Agreement with the statements ‘Iced teas are suitable for drinking all year round’ and ‘I enjoy experimenting with different tea flavours’, by demographics, June 2014
Figure 135: Agreement with the statements ‘Herbal teas are healthier than standard teas’ and ‘Tea is better for you than coffee’, by demographics, June 2014
Figure 136: Agreement with the statements ‘I am interested in trying tea that offers added health benefits (eg added vitamin C)’ and ‘Ready-to-drink teas (eg iced tea) are a healthier alternative to soft drinks’, by demographics, June 2014
Figure 137: Agreement with the statements ‘Loose leaf tea is better quality than tea bags’ and ‘It is worth paying more for specialty teas (eg oolong)’, by demographics, June 2014
Figure 138: Agreement with the statements ‘I am willing to pay more for tea bags made from better quality material’ and ‘Ethical teas are worth paying more for’, by demographics, June 2014
Figure 139: Agreement with the statements ‘I wish there were more flavours of ready-to-drink iced tea available’ and ‘It takes too much time to make tea using tea bags’, by demographics, June 2014

Appendix - The Consumer - Hot Beverages and Chinese Canadians
Figure 140: Selected demographics by total population against Chinese Canadians, June 2014

Appendix - The Consumer - Target Groups
Figure 141: Target groups, June 2014
Figure 142: Target groups, by demographics, June 2014
Figure 143: Hot beverage usage, by target groups, June 2014
Figure 144: Choice factors when purchasing tea, coffee and hot chocolate, by target groups, June 2014
Figure 145: Locations for drinking coffee in the past month, by target groups, June 2014
Figure 146: Ownership of single-serve coffee makers, by Target Groups, June 2014
Figure 147: Reasons for not being interested in owning a single-serve coffee maker, by target groups, June 2014
Figure 148: Attitudes towards coffee, by target groups, June 2014

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