In 2012 the Canadian cafés/bars market grew by 4% in current value terms to reach C$4.9 billion.
Growth was rather modest due to the fairly mature nature of this category. The sector includes bars/pubs (43% value share), specialist coffee shops (38%), juice/smoothies bars (14%) and cafés (5%).
The number of outlets grew by 2% to reach 8,614 establishments, slightly lower than the compound annual growth rate (CAGR) seen over the past five years.
Two main drivers of the category‟s growth are the well-established coffee culture in the country (Canada remains in the top 10 countries in the world with the highest consumption of coffee per capita) and increasing health and wellness concerns among the population.
The key trend of 2012 was the expansion of trendy urban bars and coffee establishments catering to a wider consumer base, in a bid to extend the category‟s consumer base by appealing to people of all lifestyles and habits.
In 2012, Starbucks Coffee Canada Inc ranked first in the Canadian café market with a 16% value share to total C$781 million in sales. Starbucks also ranked first in terms of the number of outlets with a total of 1,181 establishments.
The company saw a strong lead in specialist coffee shops, where it accounted for a value share of 42%, and 39% of transactions.
Over the next five years the Canadian café market is projected to see a constant value compound annual growth rate (CAGR) of 2% and a 1% CAGR in transactions, while the number of outlets is projected to grow by an annual average of 1%.
In 2017, sales through cafés are thus expected to amount to approximately C$5.2 billion. The economic recovery as well as legislative changes will continue to play a role in the performance of the café market in coming years.
However, considering already high per capita consumption of coffee in Canada, a focus on coffee will have to be increasingly shared with other menu developments, including food, light meals, potentially wine and beer and increasingly speciality tea.
For more information on the Canadian café market, see the latest research: Canadian Café Market
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