The demand for tea in Canada is steadily growing these days, which is reflected by its high sales and the ever-expanding range in the local market.
Tea may still lag behind coffee in terms of consumption in Canada, but its popularity been steadily growing over the last 15 years with the arrival of sushi and various other Asian traditions to the country. Initially, tea began its comeback in Western Canada (coming from the U.S.) and finally ended up in the eastern part of the country.
According to StatCanada, a state web-resource, Canada has a very limited domestic tea production (with only one tea farm on Vancouver Island), which is mainly due to climate, which forces the country to import about 50,000 tons of tea annually.
According to the Quebec-based HRI mag paper, at present, Canadians drink nearly nine billion cups of tea a year, and there is a high possibility these figures will continue to grow during the period of 2025-2026. This is despite the fact that tea prices in the country have significantly increased in recent years, which is mainly due to a generally high rate of inflation in the country.
According to earlier estimates of Restaurants Canada, the tea market is valued at about CAD$1.8-2 billion annually, with the annual growth rates of 8-10%. At present, Canada's per capita tea consumption ranks 20th in the world, while Canadians drink twice as much tea as Americans, according to the Tea and Herbal Association of Canada, which was founded in 1954 to promote tea and health.
In the meantime, the ever growing popularity of tea in Canada is also reflected by the fact that in Canadian foodservice, hot tea sales are the fastest growing beverage category these days. Due to this, many Canadian restaurants have significantly expanded their menus with the choice of various teas.
Probably one of the centers of the tea boom in Canada is the French-speaking province of Quebec, which is also the home of DAVIDsTEA—the Canadian major specialty tea and tea accessory retailer and one of the largest in North America. However, the demand for the drink remains also high in other major provinces of the country, such as Ontario and British Columbia.
In recent years, the tea range in the Canadian market has been significantly expanded and diversified, which led to a sharp growth of demand for some exotic spicy teas like chai, which is becoming increasingly popular in Canada.
At present, chai is the fastest growing tea category and is seen by consumers as an alternative to coffee, especially in its milky version (latte).
According to earlier statements made by analysts of the Tea and Herbal Association of Canada, the image and reputation of tea in Canada has significantly transformed; it is no longer considered a favorite drink of seniors, but rather, a popular drink among young people with good incomes.
According to Statista, the majority of tea drinkers in Canada are between the ages of 35 and 44. Tea is becoming more popular among young people because of its taste, but especially because of its health and environmental benefits. Also, its production is not influenced by crime or cartels, as is the case with other types of production, which also attracts additional customers.
Also adding to the popularity of tea in Canada is the appearance of a vast selection of online sellers as well as an increase in the number of specialty tea shops in the majority of large and small cities in Canada.
According to some local analysts and experts in the field of tea business, tea is no longer seen as a grocery product, but rather, an important component of day-to-day life for the majority of Canadians. The same is for the hotels, restaurants, and catering businesses (HORECA) segment where tea, and especially specialty tea, is now treated as an integral part of the service.
Analysts of the Tea and Herbal Association of Canada have also observed an ever-growing demand for various "functional teas" in Canada, which are boosted with vitamins and minerals, and characterized by a good, healthy image.
Most of the local analysts expect the range of teas in the Canadian market to expand in years to come, as many Canadian traders and distributors continue to visit Asia every year to rediscover the teas of small producers. They look for rarities and exclusives to offer to their customers. At the same time, local players will continue the expansion of their tea business, placing less emphasis on teas from Asian origins.
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