Strong brew: Rising demand and an expanded product portfolio will support industry revenue

Over the past five years, Coffee and Tea Production industry revenue has been volatile. Severe fluctuations in the world price of coffee have occurred in line with climate conditions significantly affecting harvest yields. Unstable commodity costs make it arduous for industry manufacturers to reflect changes in raw material costs quickly in their product pricing. However, as consumers value coffee and tea products with high quality and consistency, the industry has benefited from more consumers purchasing specialized blends, compared with low-cost tea and coffee products sold in bulk...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
2.2%
Forecast Growth 18-23
Profit
Employment
4,754
Businesses
306

Industry Threats & Opportunities

  • The industry has benefited from more consumers purchasing specialized blends
  • Consumer demand for specialty coffee and tea has been a boon to the industry
  • Spiced teas are growing in popularity, partly due to changes in consumer demographics
  • Industry Report - Industry Investment Chapter

    The Coffee and Tea Production industry in Canada has a moderate level of capital intensity. In 2018, for every dollar spent on labour, the industry incurs an estimated $0.24 in capital expenditures, representing a marginal decrease from $0.25 in 2013. Many producers purchase software and equipment that streamlines the manufacturing process. For example, some companies may invest in information technologies and systems that enhance their production efficiencies for coffee processing plants or operations related to blending teas. Comparatively, the industry has moved away from being highly reliant on production employees, as a share of total employees, and toward more administrative employees. As ...purchase to read more.

    Additional Insights for the Coffee & Tea Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Coffee & Tea Production Industry are

  • Ability to adapt to change
  • Ability to pass on cost increases
  • Product differentiation
  • IBISWorld analysts also discuss how external factors such as World price of coffee and Per capita disposable income in the Coffee & Tea Production industry impact industry performance..

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    What's in this report

    What is the Coffee & Tea Production Industry?

    This industry primarily roasts and packages imported coffee beans, as well as blends and packages tea. It may also produce coffee extracts or concentrates, including instant or freeze-dried varieties. Establishments that primarily bottle or can iced coffee and tea, as well as ready-to-drink tea, are excluded from this industry.

    Industry Products
  • Whole bean roasted and ground coffee
  • Single-cup coffee
  • Espresso
  • Instant coffee
  • Tea
  • Industry Activities
  • Coffee roasting
  • Coffee extract production
  • Coffee flavouring and syrup production
  • Coffee substitute production
  • Instant coffee production
  • Importing tea leaves
  • Tea leaf oxidation
  • Blending tea
  • Packaging tea
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of coffee
  • Per capita disposable income
  • Canadian-dollar effective exchange rate index
  • Demand from supermarkets and grocery stores

  • Current Performance
  • Commodity volatility
  • Specialized coffee and tea
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Shifting demographics
  • Global demand and specialization
  • Table: Coffee & Tea Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Coffee & Tea Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling in Canada
  • Supermarkets & Grocery Stores in Canada
  • Convenience Stores in Canada
  • Food Service Contractors in Canada

  • Key Selling Industries
  • Baking Mix & Prepared Food Manufacturing in Canada
  • IT Consulting in Canada
  • Plastic Film, Sheet & Bag Manufacturing in Canada

  • Products & Services
  • Tea
  • Whole bean roasted and ground coffee
  • Single-cup coffee
  • Espresso
  • Instant coffee
  • Chart: Coffee & Tea Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Foodservice
  • Exports
  • Groceries and retail outlets
  • Office and other
  • Chart: Major Market Segmentation for the Coffee & Tea Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Coffee & Tea Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Coffee & Tea Production Industry

  • Industry Globalization
    Mother Parkers Tea & Coffee Inc., Restaurant Brands International Inc., Keurig Green Mountain Inc., Nestle Canada Inc., Morrison Lamothe Inc.,
  • Table: Mother Parkers Tea & Coffee Inc. - financial performance
  • Table: Restaurant Brands International Inc. - financial performance
  • Table: Keurig Green Mountain Inc. - financial performance
  • Table: Nestle Canada Inc. - financial performance
  • Table: Morrison Lamothe Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Coffee & Tea Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Coffee & Tea Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of coffee (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Arabica
  • The premium variety of coffee bean native to Africa, and the bean that the majority of premium coffee products are made with.
  • Green Coffee
  • Natural coffee beans extracted from the fruits after harvesting.
  • Ground Coffee
  • Roasted coffee reduced to small or very small particles, depending on the end product it is being used for.
  • Organic
  • A product made from mineral and plant ingredients rather than derived chemical compounds.
  • Oxidation
  • Describes a state where tea leaves undergo a change in molecular structure.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Coffee & Tea Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Coffee & Tea Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Coffee & Tea Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Coffee & Tea Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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