As of 2025, Canada’s coffee industry continues to thrive, reflecting both traditional preferences and emerging trends that cater to a diverse and evolving consumer base.

Consumption Patterns

Coffee remains a staple in the daily lives of Canadians, with approximately 80% of the population enjoying at least one cup per day. On average, Canadians consume 2.7 cups daily, with residents of Manitoba and Saskatchewan leading consumption; about 18% of coffee drinkers in these provinces consume at least five cups a day.

The market has seen a notable shift towards specialty and artisanal coffee, as consumers increasingly value high-quality beans, unique brewing methods, and a focus on the origin of the coffee.

Market Growth and Economic Impact

The Canadian coffee market was valued at USD 23.61 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 3.75% between 2025 and 2034, reaching approximately USD 32.89 billion by 2034.  This growth is driven by both at-home and out-of-home consumption. By 2025, at-home coffee consumption is expected to reach 160.88 million kilograms, while out-of-home consumption is projected at 56.95 million kilograms.

The coffee industry significantly contributes to the Canadian economy, supporting over 160,000 jobs and generating total sales of $6.2 billion, with $4.8 billion from foodservice sales and $1.4 billion from retail sales.

Emerging Trends

Cold Coffee Beverages

Cold coffee beverages have experienced a 10% annual growth rate, driven significantly by Gen Z consumers, nearly 50% of whom prefer cold coffee options. In contrast, fewer than 10% of Baby Boomers are inclined to deviate from their traditional hot coffee preferences.

This trend is reflected in the performance of major chains like Tim Hortons, which reported over 6% growth in cold drink sales during the unusually warm winter of 2024. However, the warm weather negatively impacted sales of hot beverages and baked goods, which are typically purchased together.

Sustainability and Ethical Consumption

Consumers are increasingly prioritizing sustainability and ethical sourcing in their coffee choices. In response, major chains like Starbucks have eliminated the extra charge for plant-based milks, such as oat, soy, almond, and coconut, in their U.S. and Canadian stores since November 2024. This move aims to attract customers concerned about the environmental impact of dairy production and promote climate-friendly, dairy-free options.

At-Home Brewing

The at-home brewing segment has seen substantial growth, with consumers investing in high-quality coffee machines and seeking premium beans. Companies like Breville have reported significant revenue increases, with coffee machine sales reaching $97.5 million AUD and coffee bean sales up over 70% year over year. This trend reflects a growing preference for café-quality coffee experiences at home, especially in the post-pandemic era.

Industry Dynamics

The Canadian coffee market has become more concentrated, with the Herfindahl-Hirschman Index (HHI) increasing from 1,670 in 2017 to 3,207 in 2023. This suggests a shift towards a market dominated by fewer, larger players.

Additionally, there’s a cultural shift in the coffee scene, with Canadian coffee shops replacing the “Americano” with the “Canadiano” as a form of quiet rebellion against the United States amidst rising tensions between the two countries. This movement reflects broader national sentiment and a growing sense of Canadian identity within the coffee culture.

In conclusion, Canada’s coffee industry in 2025 is characterized by robust consumption, market growth, and evolving consumer preferences. Trends such as the rise of cold coffee beverages, a focus on sustainability, and the popularity of at-home brewing are shaping the landscape, offering both challenges and opportunities for stakeholders in the sector.