Strong brew: The world price of coffee has fostered strong revenue growth

Operators in the Coffee and Tea Production industry in Canada primarily roast and package imported coffee beans in addition to blend and package tea. Over the five years to 2019, industry revenue growth has been strong, despite a severe fluctuation in the world price of coffee. As more chain retailers and mass merchandisers have inundated the retail sector, coffee and tea producers have grappled with retailers using their large-scale operations as leverage to secure low-cost prices for industry products, potentially constraining revenue growth. Over the five years to 2024, industry revenue is forecast to increase, and the industry will likely benefit from more coffee and tea aficionados...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 14-19
10.2%
Forecast Growth 19-24
Profit
Employment
4,246
Businesses
390

Industry Threats & Opportunities

  • Export growth has been robust due to the depreciation of the Canadian dollar
  • The industry has contended with changes in the retail market
  • Spiced teas are growing in popularity, partly due to changes in consumer demographics
  • Industry Report - Industry SWOT Analysis Chapter

    The Coffee and Tea Production industry in Canada is currently in the growth phase of its economic life cycle. It is characterized by a faster growth rate compared with the Canadian economy in combination with continued product innovation comprising its nonetheless stable industry product segmentation and the stability of per capita coffee consumption. Industry value added (IVA), which measures an industry’s contribution to the overall economy, is expected to increase at an annualized rate of 7.2% over the 10 years to 2024. Comparatively, during the same period Canada’s GDP is anticipated to rise at an annualized rate of 1.7%. Whi...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 (drip coffee)
  • Single-cup coffee
  • Espresso
  • Instant coffee
  • French press/plunger
  • 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 effective exchange rate index
  • Demand from supermarkets and grocery stores

  • Current Performance
  • 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 (drip coffee)
  • Single-cup coffee
  • Instant coffee
  • French press/plunger
  • Espresso
  • 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
    WagesPurchasesProfitDepreciationMarketingRentOther Costs
  • Chart: Cost Structure Benchmarking – Sector vs Coffee & Tea Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Coffee & Tea Production Industry

  • Industry Globalization
    Restaurant Brands International Inc., Keurig Dr Pepper, Morrison Lamothe Inc., Mother Parkers Tea & Coffee Inc.,
  • Table: Restaurant Brands International Inc. - financial performance
  • Table: Keurig Dr Pepper - financial performance
  • Table: Morrison Lamothe Inc. - financial performance
  • Table: Mother Parkers Tea & Coffee 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • World price of coffee (2010-2024)

  • 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
  • The 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
  • This describes a state where tea leaves undergo a change in molecular structure.
  • What Our Customers Say

    Why buy this report?

    The Coffee & Tea Production market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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