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Coffee and Tea Production in Canada Industry Market Research Report Now Available from IBISWorld
Date:7/27/2014

New York, NY (PRWEB) July 27, 2014

Over the past five years, the Coffee and Tea Production industry has fared well, thanks to many consumers valuing the taste and versatility of tea and coffee blends. According to the Coffee Association of Canada's Canadian Coffee Drinking Study in 2011 (latest data available), Canadians consume 2.7 cups of coffee per day. “This trend, coupled with many studies that have shed light on the health benefits of drinking tea on a daily basis, has stimulated consumer demand for coffee and tea products,” according to IBISWorld Industry Analyst Sarah Turk. Furthermore, more consumers have valued coffee and tea products made with input commodities, such as coffee beans and tea leaves, that are derived ethically from coffee bean or tea leaf plantations. As a result, many Canadians pay a premium for fair trade and organic products, thereby bolstering industry revenue. Nevertheless, the industry has still contended with many challenges. For example, as more chain retailers and mass merchandisers have characterized 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.

“Further exacerbating this trend, many retailers have inundated the market with private-label coffee and tea products while using in-store promotional activity to develop a strong customer base, which has intensified competition for industry operators,” says Turk. However, as consumers have valued coffee and tea products with high quality and consistency, the industry has benefited from more consumers purchasing specialized blends, compared with l
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