Coffee’s hottest and coolest trends
Grocery shoppers may be forgoing frills for affordability, but most won’t let rising prices stand between them and their cup of joe.
“Coffee is such an important element of Canadians’ lives and they’re generally not reducing their consumption,” says Robert Carter, president of the Coffee Association of Canada (CAC).
Declines in coffee yields and supply chain are contributing to rising costs, with Statistics Canada reporting a 28% increase in grocery-store coffee prices in August compared with a year earlier. Despite this, Carter notes that nearly 80% of Canadians drink a cup of coffee daily, and it remains the No. 1 consumer beverage in Canada.
Data from NielsenIQ (NIQ) confirms the Canadian at-home coffee market is strong, generating $2.4 billion in retail sales—an 11% increase in the past year. However, Carman Allison, vice-president of business development, notes inflation-driven growth is masking slight declines in volume. “Consumers may be spending more to fuel their love of coffee, but they are purchasing 3% less volume as rising prices pull back consumption for some.”
READ: How Canadian consumers are adapting in an uncertain economy: NielsenIQ
Still, coffee remains a staple with 83% of Canadians spending an average of $153 in the last year for in-home consumption, according to NIQ. Roast and ground coffee accounts for 84% of coffee sales, while instant and ready-to-drink formats account for 12% and 4%, respectively. Allison notes premium segments such as pods continue to grow, with dollar sales up 9% and volume sales up 1%, proving consumers are still willing to pay for convenience.
Balancing quality and price
While Canadians aren’t about to part with their coffee rituals, some habits are evolving. “Overall, value remains a key driver of coffee sales with some consumers shifting to lower-priced private-label options, buying more at discount retailers or in bulk from warehouse clubs to get a lower price per use,” says Allison.
Ian Buckingham, vice-president, sales at Melitta Canada, says customers are buying more on promotion, and are taking advantage of larger pack sizes. “We work closely with our retail partners to develop merchandising and promotional strategies that benefit both the store and our consumers,” he says. “Tying in other complementary products, such as Melitta coffee filters or retailer loyalty programs, also adds value to the consumer.”
READ: Roasters and cafes grapple with rising coffee bean prices
At Stong’s Market in British Columbia, quality and supporting local makers remain strong purchase drivers, even with rising coffee prices, says Arden Fowler, store operations manager. “Rather than trading down, many are choosing to buy better, but more intentionally. We’ve noticed customers exploring smaller-batch local roasters, single-origin offerings and seasonal blends—often prioritizing freshness and craftsmanship over price.”
Julia Leguizamon, general manager of online grocer Natura Market, says for most people, coffee is not a luxury—it’s a must-have. However, she says many customers are shopping for coffee and related items during sales and buying bigger pack sizes to try to get a better per-gram price.
In a recent survey by the CAC, 74% of Canadians agreed that preparing coffee at home saves money without losing enjoyment. For those with coffee shop tastes, it’s getting easier to recreate a premium coffee experience at home. “Consumers want freshness and quality and are willing to take the time to find the right solution,” says Lori Brick, marketing manager at Melitta Canada.
A flavour and format evolution
As Canadians explore new ways to enjoy their daily cup, one hot trend is ready-to-consume cold coffee. “Be that a canned or bottled beverage, or instant iced coffee—that is also a growing category for us, which confirms that coffee is much more than just a morning drink now,” says Natura Market’s Leguizamon.
Coffee drinkers are also broadening their flavour palate. “Consumers are looking for variety when it comes to enjoying their coffee,” says Sonya Aquilina, vice-president of sales at Balzac’s Coffee, which operates a growing grocery business and a net- work of cafés in Ontario. “Whether it’s the first cup of the day or an afternoon treat, seasonal flavours and limited-time offerings resonate well.” To that end, Balzac’s recently launched Canada’s Cup, a medium roast coffee billed as “bold yet balanced–like the Canadian spirit.”
Balzac’s also launched its first flavoured coffee SKU this year: Canadian Maple. “The new offering is inspired by our café favourite, the Canadian Maple Latte, and early results have been very positive,” says Aquilina.
READ: From small farms to your cup: What it takes to make that one cup of fresh coffee
Meanwhile, there’s growing interest in coffee that delivers more than a jolt—consumers are looking for added health benefits. “We’ve seen growing curiosity around functional coffee blends—particularly mushroom-based and adaptogenic coffees—though it remains a niche category for our shoppers,” says Stong’s Fowler. “Customers who explore these tend to be health-forward and ingredient-conscious. We currently carry a select number of functional coffee products from smaller Canadian makers, and we’re open to expanding thoughtfully.”
Natura is also seeing an uptick in functional coffees. “We are observing a spike in demand for mushroom coffee, protein and collagen-enriched coffee and teas,” says Leguizamon. “We offer a few legacy brands such as Four Sigmatic, Bulletproof, Organic Traditions, and have also recently re-introduced emerging Canadian brands like Blume and Beck’s Broth.”
NIQ’s Allison sees an opportunity for brands to stand out and stay on trend in this area. “Brands should consider functional coffee featuring protein and adaptogens, while emphasizing energy and cognitive benefits on clean-label packaging to build trust,” he suggests.
Sustainability remains key
As shoppers increasingly focus on quality, value and variety, what becomes of demand for more environmentally friendly, ethically sourced coffee? “Sustainability is still very high on consumers’ radars, and it plays into their overall value equation,” says CAC’s Carter. “It’s not a situation where people are trading down to get the cheapest coffee, regardless of how it’s produced.”
He adds that consumers are concerned about fair trade, and certifications such as Rainforest Alliance are still important. “They’re educated on the supply chain, the countries of origin and the uniqueness of the different types of beans, particularly younger consumers,” Carter says.
Melitta Canada’s Brick says attributes including ethical sourcing, 100% Arabica and sustainability remain important in driving purchase decisions. “Our partnership with the Rainforest Alliance reflects our commitment to responsible sourcing and supporting best practices within the global coffee community,” she says. “In line with this commitment, our coffee filters are also FSC- and BPI-certified.”
Leguizamon observes that while ethically sourced and Fairtrade-certified products cost more, a positive trend in the industry is more manufacturers are making the switch. “These values still matter to a lot of consumers and are a non-negotiable factor in decision making for many people,” she says. “Natura Market even has a filter to search for Fairtrade-certified products, including coffee.”
Sourcing products with local ties matters, too. “Even though coffee is not a product of Canada, the Buy Canadian movement for brands stating they are local (origin of Canada) outperformed the total category by 6%,” says NIQ’s Allison.
Stong’s coffee assortment includes its locally roasted private-label line, as well as multiple local roasters, each with a unique roasting style and sourcing philosophy. To promote their local roots, the retailer prominently features local roasters with signage that highlights their story and values. It also does in-store sampling, which Fowler says works notably well when the roasters themselves participate. “Consumers appreciate the storytelling behind each roast—where the beans come from, why the roast profile was chosen, and who the people behind the brand are,” he says.
This article was first published in Canadian Grocer’s December 2025/ January 2026 issue.
