Market Size - Hot Tea Consumer Market: Canada
The Canadian hot tea market is valued at $437 million in 2019 and is expected to reach $503 million by 2023 with a CAGR of 3.58%. Canada's total tea segment is valued at $699 million and is projected to reach $838 million by 2023 growing at 4.7% annually.
To begin with our research, we tried searching for the total market size of consumer tea products in Canada. Next, we decided to identify the market share of hot tea segment from the overall market of all tea products. We were able to highlight insights regarding industry revenue, consumer profile, market growth, and per capita consumption for hot tea products like tea bags, leaf tea, black tea, green tea, among others. For this research, we referenced credible sources like World Tea News, Tea Association of Canada, GBC First, Allied Market Research, and Statista.
MARKET SIZE and growth
According to a recent report by Allied Market Research, the total market size for tea products in Canada is valued at $699 million in 2019 and is projected to reach $838 million by 2023, registering a CAGR of 4.7%. The share of hot tea products (tea bags, loose-leaf tea, black tea, green tea) stood at 62.5% or $437 million in 2019. The Canadian hot tea segment featured a steady annual growth of 1.7% in 2016 and reached 3.6% in 2019. It is noted that the segment's annual growth will top-off at 4.4% in 2020 and will slowly decline to 2.3% by 2023. The total volume of hot tea products consumed in Canada for 2018 is 17.3 million kg and is expected to reach 18.5 million kg by 2023, registering a CAGR of 1.35%. While the average price per unit for hot tea products in Canada is $24.97 in 2019 and is estimated to reach $27.19 by 2023 (CAGR 1.72%).
According to a report by the Tea Association of Canada, the amount of tea consumed by Canadians has increased by over 2x since 1991. The per capita consumption of tea in 1991 was only 36 liters while for 2015 it stood at 85 liters, registering a CAGR of 3.64%. According to a recent article by World Tea News, the average Canadian spends about $25.50 per year on hot tea, while Americans pay about $15.95 per year. Also, Canadians consume nearly twice the amount of hot tea compared to Americans (0.43 lb vs. 0.26 lb). According to Statista, the average per capita revenue for the hot tea segment amounts to $11.73 in 2019 and is expected to reach $13.06 by 2023.
According to the Tea and Herbal Association of Canada, millennials (aged 19–37) account for more than 30% of all Canadian tea drinkers. The average Canadian tea drinker's profile includes — 55% female, a resident of a city (39%) or suburbs (46%), belongs to a household with 3-4 members (35%), and categorized as a medium tea drinker (41%).
In Canada, the grocery outlets account for 47% to 53% of all tea shopping; this figure drops to 37% for millennial tea drinkers. It is further noted that about 12% of Canadians shop for tea at Walmart and Costco, 22% buy from specialty stores, 10% buy from tea shops and only 3% purchase tea products from departmental stores.