Canada Instant Coffee Market - Strategic Insights and Forecasts (2025-2030)

The Canadian Instant Coffee Market is projected to reach USD 269.449 million by 2031, growing at a CAGR of 2.16% from a valuation of USD 242.086 million in 2026.

Canada Instant Coffee Market Highlights

As consumers prioritize convenience and premium flavour profiles, there has been an increase in instant coffee consumption in Canada. Freeze-dried and spray-dried are the two primary product types producing aroma retention with affordability. As more consumers purchase ready-to-drink coffee, many specialty coffees have been developed for those who prefer different flavors. Retail channels, including grocery stores and e-commerce websites, are instrumental in making instant coffee products readily available for purchase. Packaging has evolved with new packaging concepts, including single-serve pouches and glass jars, which provide convenience and ease of storage. Social preferences among different provinces greatly affect the product categories that will be produced for sale and how they will be marketed. The instant coffee segment in Canada demonstrates the transitional nature between the traditional coffee-drinking practice and today's expectations of drinking high-quality, fast coffee.

Canada Instant Coffee Market Overview

Canada's instant coffee market, as part of the overall coffee and hot beverage sector, has been established. The average Canadian household has steady high levels of the coffee category. The significant number of Canadians buying coffee has greatly influenced the retail distribution and daily consumption habits, with coffee being purchased regularly.

According to Statistics Canada's retail price monitoring study of the instant coffee market in 2025, instant coffee continues to be priced lower than other coffee types and more affordable than many of the other coffee options in the coffee category. Instant coffee is ideal for price-sensitive consumers, especially mature consumer demographics, along with those who prioritize the ease of beverage preparation. Instant coffee is not only convenient, but it is also available widely throughout Canada, even though more premium coffee alternatives are also gaining popularity.

The bar chart shows Nestlé's global performance in 2024, with total sales of CHF 91,354 million and a profit for the year of CHF 11,174 million. These figures highlight the company's ability to generate strong profitability from its worldwide operations. Nestlé's global strength allows it to invest in product innovation, marketing, and supply chain improvements, which indirectly support growth in regional markets like Canada's instant coffee sector. By leveraging global resources, expertise, and brand recognition, Nestlé can enhance product quality, expand distribution, and maintain competitiveness in Canada while responding to evolving consumer preferences.

Canada Instant Coffee Market Drivers

• Wider Distribution and E-commerce Adoption

E-commerce accounted for 6.1% of total Canadian retail sales in December 2024, with online retail sales totalling approximately US$3.14 billion. While earlier projections estimated that Canada's e-commerce market would generate over US$65.5 billion in 2024, more recent industry estimates suggest it reached approximately US$89.4 billion in gross merchandise value (GMV). The sector is expected to continue its upward trajectory, with revenues projected to reach US$104 billion by 2029.

Canadians have been buying on the internet (Online Shopping) for some time now; this trend is steadily growing as the Canadian Government Statistical Reporting indicates, Canadians are becoming increasingly comfortable purchasing items online from retailer websites, mobile applications, and combinations of Online and physical locations for pickup. It was anticipated that approximately 77.6% of Canadian adults would be shopping online for at least 1 product by 2025, reflecting the increased acceptance of E-Commerce among different age groups and geographic locations in Canada.

The shift to online shopping is significant to instant coffee brands because it enables instant coffee products to be marketed to a much broader audience than merely what's physically available through retail grocery channels. Additionally, selling directly to consumers allows producers to reach consumers throughout Canada, including areas where grocery stores may have limited shelf space for instant coffee products. Digital Distribution enables producers to track their inventories in real-time and provide tailored offerings to their consumers. Furthermore, a significant percentage of Canadians are taking advantage of Delivery and Click-and-Collect services for their grocery purchases. Therefore, grocery retailers must also adopt these services to remain competitive.

The overall trend shows that online channels are becoming more prevalent in how Canadians make retail purchases, and provide a definitive benefit and opportunity for creating distribution strength for Instant Coffee Products.

The expected growth of e-commerce signifies increasing levels of e-commerce activity across Canada. The benefits of increasing levels of eCommerce sales include increased sales for instant coffee manufacturers that are selling via eCommerce channels, increased reach of consumers beyond physical stores, and access to growing digital shopping behaviour. As e-commerce continues to occupy growing portions of the consumer expenditure pattern, instant coffee retailers will benefit from improved distribution systems, greater visibility, and more reachable, larger customer bases.

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Canada Instant Coffee Market Segmentation Analysis

• By Type: Freeze-dried Instant Coffee

By type, the Canadian instant coffee market is segmented into freeze-dried instant coffee, spray-dried instant coffee, and others. The instant coffee freeze-drying segment in Canada is growing as it offers a cafe-like experience at home without the trouble of brewing from scratch. This process is preferred since it gives the beverage more natural flavors and aromas than cheaper spray-dried coffee.

The millennials and Genz in Canada are ready to spend more for the good quality of taste and smell coffee, and the freeze-dried products are the ones that most effectively offer this. The Specialty Coffee Association states that freeze-drying maintains the coffee's quality, thus attracting the regular and discerning drinkers who consider it a notch above the regular instant coffee. Moreover, this segment is more prevalent in Canada, where coffee consumption is getting more sophisticated, and consumers are increasingly opting for specialty blends, organic options, and single-origin varieties.

This driver is particularly strong among affluent, urban professionals who are willing to pay more for quality as their disposable income is increasing. According to Statistics Canada, the disposable income in the country witnessed growth of 3.9 percent from $24,376 in the second quarter of 2024 to $25,319 in the second quarter of 2025.

In addition, the Canadian workers are becoming more time-restricted as a result of longer work hours and an increase in remote or hybrid work setups. Instant coffee, especially freeze-dried, requires hot water for the making process; thus, it aligns with people's fast-paced lifestyles. Further, the growing urbanization adds to this since more Canadians are living in cities where they have limited time for the traditional brewing process.

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Canada Instant Coffee Market Provincial Analysis

• By Province: Ontario

The Canadian instant coffee market has been segmented by province into Manitoba, Ontario, Quebec, and others. Ontario's instant coffee market is driven by the urban population, along with the rising workforce, which is expected to promote the demand for convenient beverages. People in business sectors like finance, technology, and services usually have long hours and also long-distance commuting. Hence, instant coffee is their ideal choice as it only requires hot water for preparation at desks, and is a convenient option during breaks or on the go.

According to the government of Canada, the working population in Ontario grew by 0.2 percent from November to December 2025, which is 8,273,100 in December 2025. Furthermore, the fast-paced corporate lifestyle in the region is promoting the demand for instant food and on-the-go options, including instant coffee, which will boost the overall market growth.

Moreover, the rise in distributors of instant coffee in Ontario, along with the growth in e-commerce channels among the regional population for the purchase of household groceries, including instant coffee, is also leading to a rise in demand.

Additionally, the growing innovation in products by leading market players is also expected to propel the market in the coming years. For instance, Tim Hortons is a major coffee chain in Canada with a significant presence in Ontario and offers diverse instant coffee blends. It has a different product portfolio provided in Ontario province, such as Tim Hortons Instant Decaf, instant light roast, and instant premium, among others. Similarly, Canadian specialty options such as 94 Celsius focused on providing higher quality bean instant coffee for both regular and premium instant coffee options, such as Elevation - Instant Coffee.

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Canada Instant Coffee Market Key Developments

• 2025: Nestlé Canada launched its first liquid espresso concentrate under Nescafé, targeting Gen Z's preference for iced coffee and enabling barista-style drinks at home.

• 2024: Nestlé introduced a new soluble coffee range under Nescafé Classic, designed for both hot and cold consumption to meet versatile consumer needs.

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The Canadian Instant Coffee Market is analyzed into the following segments:

• By Type

  • Freeze-Dried Instant Coffee

  • Spray-Dried Instant Coffee

  • Others

• By Packaging

  • Sachets/Pouches

  • Jars

• By Distribution Channel

  • Offline

    • Foodservice

    • Retail

      • Supermarket/Hypermarket

      • Convenience Store

      • Others

  • Online

• By Province

  • Manitoba

  • Ontario

  • Quebec

  • Others