Beer market declined again as consumers migrated to other categories. Craft beer continues to be popular among consumers whereas mainstream brands suffered, especially in the on-premise as local bars started to stock local brands more. Imports grew by 3% as craft beer was imported from the US
- Poor weather caused production cost increases
- Craft beer is growing in popularity
- Canada remains a tightly regulated market which will affect future growth
Canadean's Canada Beer Market Insights 2015 Report provides a complete overview of the Canada beer industry structure offering a comprehensive insight into historical background trends, 2014 performance and 2015 outlook. Covering total market (on and off-premise) the report details:
- 2010-2014 actual detailed beer consumption volume data by segment, brand, brewer, packaging and distribution (on-/off-premise), with 2015 forecasts
- Top line production, import, export and consumption volume from 2004-2014 with forecasts for 2015
- Value by distribution channel 2010-2014, with 2015 forecasts
- 2013-2015 selected on-/ off-premise retail prices
- Details of key beer new product launches in 2014 by company
- Overview of the competitive landscape in the beer market, with analysis of key company performance
- Insightful and valuable analysis of the drivers behind both current and emerging trends in the beer market
- Data is also available in excel format
- Gain an in-depth understanding of the dynamics and structure of the Canada beer industry, from the latest competitive intelligence of both historical and forecast trends to enhance your corporate strategic planning
- Evaluate the current emerging trends and future growth opportunities in the Canada beer market to support your brand development and marketing initiatives
- Understand volume vs value trends and identify the key growth opportunities across the super-premium, premium, mainstream and discount segments to best target profitability
- Analyse domestic and imported beer brand performance and determine the key trends driving consumption preference to develop a competitive advantage
- Interrogate the unique granularity of our data to analyse the market on a variety of levels to make well-informed decisions on future threats and growth prospects in the marketplace for your company
- Use our new powerpoint add-on to quickly absorb a succinct summary of the key trends in the Canada beer market
- View a selection of the key 2014 product launches and identify competitor activity and product innovation and differentiation prospects
2 EXECUTIVE SUMMARY
3 MARKET CONTEXT
3.1 Market Context
3.2 Market Parameters Tables
3.3 Legislation and Taxation Tables
4 MARKET BACKGROUND BRIEFING
5 MARKET UPDATE
5.1 Market Commentary
5.2 Packaging Trends
5.3 Beer Pricing Tables
5.4 Beer Data Tables
6 BREWER PROFILES
7.2 Methodology and Product Definitions
LIST OF FIGURES
Figure 1: Beer Leading Brewers/Importers, 2014
Figure 2: Beer Consumption by Pack Material/Type, 2014
Figure 3: Beer Distribution by Channel, 2014
Figure 4: Beer Consumption by Price Segment, 2014
An increased interest in wine and spirits has drawn Canadian consumers away from beer, resulting in a market contraction of 2% in 2012, according to consumer specialist Canadean’s new report: Canada Beer Market Insights 2013. This has been compounded by the recent 20% increase in beer excise rates in Quebec, along with the National Hockey League’s lockout, which shortened the 2012-2013 season by almost 50%, driving a significant decline in sales for major brewers.
Despite this, the diverse product offerings of craft breweries offers hope to the market, with flavored beer beverages targeted at women in particular helping broaden the market’s appeal.
For organizations that have a stake in the Canadian beer market, a proper understanding of the broader context of life in Canada, and beer’s place in it, is paramount to successfully capitalizing on the opportunities the market presents.
Beer’s Place in Canada’s Economy
The Canadian beer industry is a large factor in Canada’s economy, supplying hundreds of thousands of jobs, putting CAD14 billion into the economy, and representing 1.2% of the country’s GDP.
Whilst consumers have increased their awareness of both personal spending and the nutritional effects of their diets, the beer industry has coped well with these consumer transformations.
The Canadian Consumer Palate
The palates of Canadian consumers have become more sophisticated in recent years: beer is emerging as more than just something that is drunk whilst watching sports, and taking a more prominent role in mealtimes and more general socializing.
Lager is considered more traditional, and the market is heavily skewed to reflect this. 56% of Canadians prefer lager, and 34% prefer ale; craft beer, however, is growing rapidly, and accounts for much of the remaining interest in the beer industry following the expansion of Canadian consumer tastes through the co-option of new food and drink cultures brought on by the increasing diversity of the population.
The Canadian Beer Industry
Canada’s beer industry one of the most tightly regulated in the world, though has a rich history with brand names that first appeared in the 1700s still employed today. Regulations include the imposition of price floors and ceilings, a limited number of standardized package types, sizes and configurations, limited in-trade promotional activity regarding price and position, and restricted availability as retail locations and hours of operation are prescribed.
One consequence of these heavy restrictions on the price, location and packaging of beer in Canada, is the substantial emphasis placed on mass media advertising, support of high profile sports and events promotion and advertising, and involvement in local and regional community activities.
A further consequence of the restrictive environment in the Canadian beer industry is the limiting of competition in the marketplace, which negatively impacts both the consumer and potential new entrants to the market. Conversely, it does protect the established major producers, and stock government coffers, creating an environment where high margins and lucrative tax revenues co-exist with remarkable stability and negligible protest from consumers. This stability, coupled with the favorable corporate and government returns, and the relatively broad acceptance of the current structure, suggests that the industry will move forward relatively unchanged for the foreseeable future, with the top four brewers holding over 95% of the market.
With the challenging regulatory environment for Beer in Canada, brewers must be highly sensitive to current and emerging trends in the market in order to capitalize on revenue boosting opportunities.
The beer market declined in 2012, driven by consumer migration to wine and spirits, and exacerbated by the tax hike in Quebec and the national hockey lock out. Despite this, the beer industry is becoming more diverse thanks to the growing presence of microbreweries, the changes in consumer tastes for new flavors from various cultures, and the growing pressure to attract female consumers.
Craft breweries are performing very well as consumers choose specialty products. The smaller breweries have been doing much better than larger breweries, which are seeing much slower growth. This is mainly because consumer tastes and choices are changing; this trend has seen larger breweries begin to buy smaller competitors to offer a variety of traditional and specialty flavors. Craft beer sales have had double-digit revenue growths in the past three years, and now represent 6% of the market and 10% of the industry revenues.
Beer’s image in Canada is undergoing a metamorphosis thanks to shows featuring chefs cooking with beer, and the increasing popularity of beer/food pairings and beer festivals. This popularity is being driven by the diversification of the population and the subsequent impact on culture. Consumers are looking for new beers,
and producers have only been happy to meet this demand, with a growing number of breweries starting to offer unique flavors.
Women and Beer
Men currently account for 80% of the beer market in Canada, so breweries are trying to compel more women to buy beer through the introduction of new flavors such as iced tea and lime. Whilst women’s consumption of alcohol has increased however, it is more focused on wine, and with the growth in the wine and spirits market, attracting more women to beer is key for market growth.
The material was prepared in August, 2013.
Table 1: Data Revisions Summary
Table 2: Canada Population Size and Growth, 1986-2017F
Table 3: Population Size and Growth, 2004-2015F
Table 4: Canada Economic Indicators, 2006-2016F
Table 5: Taxation Base
Table 6: Provincial Excise Taxes
Table 7: Legal Controls on Beer updated to reflect current
Table 8: Tax Burden on Beer @ 5% Abv, 2014
Table 9: Leading Retail Groups for Beer 20010-2014 (number of outlets)
Table 10: Beer Key Facts
Table 11: Top 10 Beer Brands - Volume, 2012-2014
Table 12: Top 10 International Premium and Superpremium Beer Brands - Volume, 2012-2014
Table 13: Licensed Brand Owners and Licensees
Table 14: Beer Market Valuation (Local Currency), 2013-2015F
Table 15: Trade Margin Build-Up Model
Table 16: Selected Consumer Beer Prices: On-Premise, 2012-2014
Table 17: Selected Consumer Beer Prices: Off-Premise, 2013-2015
Table 18: Beer Production/Trade/Consumption 000 HL, 2004-2015F
Table 19: Beer Production/Trade/Consumption - Growth, 2004-2015F
Table 20: Consumption of FABs and Cider (000 HL), 2004-2015F
Table 21: Beer Foreign Trade By Country (Imports), 2011-2015F
Table 22: Beer Foreign Trade By Country (Exports), 2011-2015F
Table 23: Beer Market Valuation (Local Currency), 2013-2015F
Table 24: Beer Consumption by Local Definition, 2011-2015F
Table 25: Beer Consumption by Standard Price Segmentation, 2011-2015F
Table 26: Beer Consumption by Alcoholic Strength, 2011-2015F
Table 27: Beer Consumption by Type, 2011-2015F
Table 28: Beer Consumption by Geographic Scope, 2011-2015F
Table 29: Beer All Trademarks, 2010-2014
Table 30: Beer Brands by Local Definition, 2010-2014
Table 31: Beer Brands by Standard Price Segment, 2010-2014
Table 32: Beer Brands by Alcoholic Strength, 2010-2014
Table 33: Beer Brands by Type, 2010-2014
Table 34: Imported Brands by Origin, 2010-2014
Table 35: Beer Licensed Brands, 2010-2014
Table 36: Beer Private Label Brands, 2010-2014
Table 37: Beer Trademark Owners, 2010-2014
Table 38: Beer Local Operators, 2010-2014
Table 39: Beer leading Brewers/Importers, 2010-2014
Table 40: Beer Consumption by Pack Mix: Refillability/Pack/Size, 2011-2015F
Table 41: Beer Distribution: On vs Off Premise, 2011-2015F
Table 42: Brick Brewing Brand Volumes 2010-2014
Table 43: Labatt Brand Volumes 2010-2014
Table 44: Molson Brand Volumes 2010-2014
Table 45: Moosehead Brand Volumes 2010-2014
Table 46: Sleeman Brand Volumes 2010-2014