Canada’s Soft Drink, Bottled Water and Ice Industry
Canada’s soft drink and ice manufacturing industry, North American Industry Classification System (NAICS) 31211, consists of establishments that are primarily engaged in manufacturing soft drinks, ice or bottled water, including that which is naturally carbonated. Water-bottling establishments in this industry purify the water before bottling it.
The Canadian soft drink manufacturing industry is highly concentrated and consists of a variety of non-alcoholic carbonated beverages, including fruit-flavoured drinks, colas, ginger ales, ginger beers, root beers, ready-to-drink iced tea and coffee, soda waters, tonic waters, sport and energy drinks, and relaxation drinks. With increasing consumer demand for healthier beverage products, the carbonated soft drinks (CSDs) industry is seeking new ways to capitalize on the market by offering innovative products such as ready-to-drink low calorie beverages, as well as vitamin and coconut water products.
To increase sales, some soft drink manufacturers have diversified their product offerings and developed their bottled water brands, and are now expanding their offerings with flavoured water lines.
The Canadian bottled water industry held prominent growth levels during the early 2000s. However, growth slowed in the mid-2000s due to a tighter economy and consumer concerns about the environment. Consumer interest in healthy products is expected to lead to increased sales of bottled water.
The Canadian ice manufacturing industry is highly concentrated and consists of companies that manufacture ice for the foodservice industry, a large user of ice, as well as packaged ice for consumers.
In 2012, 300 establishments were operating in Canada with the majority located in Ontario (89), Quebec (56) and British Columbia (65). In the same year, the industry generated revenues of $4.4 billion and employed over 16,900 people. The industry is a net importer, importing $900 million in 2014 while exporting $102 million in the same year. The United States accounts for 89% of exports and the majority of imports come from the United States (74%), followed by Switzerland, France, Italy, and Thailand.
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The following figures are in millions of Canadian dollars.
|Canadian market (imports and domestic shipments)||4,970.00|
|Sales of goods manufactured (exports and domestic shipments)||4,414.30|
Source: Statistics Canada
Between 2004 and 2012, sales of goods manufactured by the Canadian soft drink, bottled water and ice industry increased 17.5% from $3.8 billion to $4.4 billion. The sector had an average annual growth rate of 15.6% over the same period. Imports as a percentage of the domestic market steadily increased from 6.1% in 2004 to 14.3% in 2012. Between 2004 and 2012, direct employment grew from 10,033 to 16,924 employees.
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|Sales of goods manufactured (in millions of Canadian dollars)||3,757.72||3,557.06||3,817.55||3,991.01||4,068.73||4,043.56||4,105.18||4,211.22||4,414.29|
|Employment (number of people)||10,033||9,797||11,098||11,641||11,124||11,078||11,722||16,684||16,924|
Source: Statistics Canada
Note: The manufacturing statistics cited in this profile are taken from Statistics Canada’s Annual Survey of Manufactures and Logging, which lags behind the current date by at least 2 years.
Soft Drink & Ice Manufacturing, 2004-2013
|Principal statistics [a]||2004||2005||2006||2007||2008||2009||2010||2011||2012||2012/11||AAG [b]
|Employment total (number of employees)||10,033||9,797||11,098||11,641||11,124||11,078||11,722||16,684||16,924||1.4%||7.8%|
|Employment – production (number of employees)||4,843||4,672||4,760||5,235||4,969||5,093||5,366||6,031||6,063||0.5%||3.0%|
|Employment - administration (number of employees)||5,190||5,125||6,338||6,406||6,155||5,985||6,356||10,653||10,861||2.0%||11.1%|
|Total revenue (millions $)||3,904||3,694||4,063||4,227||4,271||4,250||4,363||4,448||4,668||4.9%||2.0%|
|Revenue from goods manufactured (millions $)||3,758||3,557||3,818||3,991||4,069||4,044||4,105||4,211||4,414||4.8%||2.0%|
|Value-added, goods manufactured (millions $)||1,635||1,502||1,720||1,740||1,859||1,894||1,964||2,031||2,178||7.3%||4.6%|
|Value-added/worker, goods manufactured (millions $)||0.34||0.32||0.36||0.33||0.37||0.37||0.37||0.34||0.36||6.7%||1.6%|
|Value-added as % of revenue from goods manufactured||43.5%||42.2%||45.1%||43.6%||45.7%||46.8%||47.8%||48.2%||49.3%|
|Domestic market (millions $)||3,636||3,544||3,873||4,178||4,441||4,511||4,545||4,705||4,970||5.6%||3.5%|
|Global trade statistics [a]||2004||2005||2006||2007||2008||2009||2010||2011||2012||2013||2013/12||AAG [b]
|Exports (millions $)||344.6||295.8||236.2||163.1||146.2||127.7||127.0||146.2||155.7||131.8||−15.3%|
|Exports as % of revenue from goods manufactured||9.2%||8.3%||6.2%||4.1%||3.6%||3.2%||3.1%||3.5%||3.5%|
|Imports (millions $)||223.2||282.6||291.9||349.6||518.2||594.8||567.1||640.3||711.4||784.6||10.3%||8.7%|
|Imports as % of domestic market||6.1%||8.0%||7.5%||8.4%||11.7%||13.2%||12.5%||13.6%||14.3%|
|Balance of trade (millions $)||121.4||13.2||−55.6||−186.5||−372.0||−467.1||−440.1||−494.1||−555.7||−652.8||17.5%|
|Trade statistics with the United States [a]||2004||2005||2006||2007||2008||2009||2010||2011||2012||2013||2013/12||AAG [b]
|Exports (millions $)||326.3||272.2||210.1||143.2||131.2||110.6||113.0||125.6||144.3||115.6||−19.9%|
|Imports (millions $)||152.0||185.7||185.9||225.2||363.1||441.2||401.5||462.9||520.9||581.9||11.7%||9.9%|
|Balance of trade (millions $)||174.3||86.6||24.2||−82.0||−231.9||−330.6||−288.4||−337.2||−376.6||−466.3||23.8%||15.0%|
For more information about Canada's food industry, read Significance of the Food and Beverage Processing Industry in Canada or contact the Sector Development and Analysis Directorate at email@example.com.
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