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.

Significance

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.

Structure

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.

Canadian soft drink and ice manufacturing industry imports, exports and sales of goods manufactured (2012)
Description of this image follows.
Description of the above image

The following figures are in millions of Canadian dollars.

Canadian soft drink and ice manufacturing industry imports, exports and sales of goods manufactured (2012)
Imports 711.40
Exports 155.70
Domestic shipments 4,258.60
Canadian market (imports and domestic shipments) 4,970.00
Sales of goods manufactured (exports and domestic shipments) 4,414.30

Source: Statistics Canada

Performance

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.

Canadian soft drink and ice manufacturing industry sales of goods manufactured and employment (2004-2012)
Description of this image follows.
Description of the above image
Canadian soft drink and ice manufacturing industry sales of goods manufactured and employment (2004 -2012)
2004 2005 2006 2007 2008 2009 2010 2011 2012
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]
2007-12

Note:
[a] Statistics Canada, Annual survey of manufactures and logging (ASML) (note there is at least a 2 year lag in ASML figures)
[b] Average annual growth rate

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%
Domestic penetration 93.9% 92.0% 92.5% 91.6% 88.3% 86.8% 87.5% 86.4% 85.7%
Global trade statistics [a] 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013/12 AAG [b]
2008-13

Note:
[a] Industry Canada trade data online (Statistics Canada data)
[b] Average annual growth rate

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]
2008-13

Note:
[a] Industry Canada trade data online (Statistics Canada data)
[b] Average annual growth rate

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%

Contact us

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 sdad-ddas@agr.gc.ca.

Date modified: