The global beverage industry is undergoing a rapid transformation, fuelled by evolving consumer demands, technological innovation, and a heightened awareness of health and sustainability. From non-alcoholic alternatives gaining popularity to the widespread shift toward environmentally friendly packaging, beverage producers are innovating at a record pace. These global movements are not only shaping international markets but also exerting a profound influence on Canada’s local beverage landscape. This report examines the latest global beverage trends, explores how they are impacting the Canadian market, and offers forward-looking recommendations for stakeholders.
Global Beverage Trends
Non-Alcoholic Beverages: Accelerated Growth
Consumer preferences are shifting decisively toward health-conscious and wellness-oriented options. As reported by Grand View Research, the global non-alcoholic beverage market reached USD 1.46 trillion in 2023 and is forecast to grow at a compound annual growth rate (CAGR) of 6.0% from 2024 to 2030. This growth is largely driven by increased consumer awareness of the health risks associated with alcohol and sugar-sweetened drinks.
Within the non-alcoholic category, functional beverages are gaining significant momentum. Products enriched with probiotics, electrolytes, vitamins, or adaptogens are appealing to a broad consumer base seeking drinks that contribute positively to hydration, digestive health, mental focus, or immunity. The popularity of formats such as kombucha, nootropic drinks, and herbal tonics reflects this global direction.
Additionally, younger consumers, particularly Gen Z, are driving demand for mindful consumption and moderation. The “sober curious” movement and campaigns such as Dry January are reshaping beverage choices and social behaviours worldwide.
Alcoholic Beverages: Premiumisation and Moderation
Despite a 1% decline in global alcohol volume sales in 2023, overall value increased by 2%, signalling a trend toward premiumisation, as reported by the Financial Times. Consumers are purchasing fewer alcoholic beverages but are willing to spend more on quality products, including craft beers, small-batch spirits, and heritage wines.
This shift is also supported by the increased availability of alcohol-free or low-alcohol alternatives that replicate the taste and experience of traditional products. Market leaders are launching innovative alcohol-free offerings to respond to this moderation trend without compromising on flavour or experience.
Digital entertainment and evolving lifestyle choices are also contributing to reduced alcohol consumption, particularly among younger generations. The shift toward at-home socialising, coupled with a growing wellness culture, is steering consumers toward more mindful drinking habits.
Sustainability and Packaging Innovation
Sustainability has become non-negotiable in the beverage industry. Global players are rethinking packaging to reduce environmental impact, minimise waste, and meet consumer expectations. As reported by AP News, Starbucks has launched a disposable cup that uses up to 20% less plastic in a bid to tackle plastic waste.
The global sustainable packaging market is expected to grow from USD 292.71 billion in 2024 to USD 423.56 billion by 2029, according to Golden Arrow. Key innovations include biodegradable bottles, compostable films, and aluminium cans sourced from recycled materials. These efforts are not only addressing environmental concerns but also becoming a point of brand differentiation and consumer loyalty.
Impact of Global Trends on the Canadian Market
Surge in Non-Alcoholic Beverage Consumption
Mirroring global patterns, Canada’s non-alcoholic beverage sector is experiencing rapid growth. According to OhBEV, the sector reached $199 million in total sales between June 2023 and June 2024—a remarkable 24% year-on-year increase. Non-alcoholic beer continues to lead this category, accounting for 76% of total sales and growing at a rate of 23.3%.
The rise of sobriety-focused lifestyle choices and increased product availability in retail and hospitality venues are contributing factors. Canadian consumers are demonstrating a strong interest in better-for-you beverages that align with their health and lifestyle goals.
Functional Beverages on the Rise
Canada’s functional beverage market is growing in tandem with global demand. As noted by Market Research Future, it is expected to expand from USD 16.1 billion in 2024 to USD 28.59 billion by 2035. Health-driven innovation is at the core of this growth, with sports beverages maintaining a higher market share than energy drinks, due to their positioning as recovery aids and hydration boosters.
Canadian consumers are increasingly turning to beverages that promise cognitive enhancement, stress relief, or gut health. As such, product formulations now often include adaptogens like ashwagandha, natural caffeine sources, or plant-based proteins.
Emphasis on Sustainable Packaging
Sustainability is equally important to Canadian consumers. According to Spherical Insights, the Canadian sustainable packaging market is projected to grow at a CAGR of 6.3% from 2023 to 2033. Consumers are consciously choosing products with minimal or compostable packaging, influencing purchasing decisions and brand perception.
Brands are responding with packaging innovations, including cartons made from recycled fibre, plant-based plastics, and returnable bottle programmes. As reported by Prism, eco-conscious packaging is becoming an expectation rather than a bonus, shaping both production and marketing strategies.
Product Innovation and Local Adaptations
Localisation of Global Innovations
Multinational beverage companies are increasingly localising their offerings for the Canadian market. As highlighted by the Financial Times, the launch of non-alcoholic versions of globally recognised beer and spirit brands in Canada reflects the adaptation to local market demand for moderation and wellness.
Moreover, beverage companies are experimenting with flavours that resonate with regional preferences, such as maple-infused teas, berry-flavoured sodas, and drinks inspired by Indigenous ingredients.
Embracing Functional Ingredients
Local Canadian brands are embracing global trends by incorporating functional ingredients that appeal to a health-conscious demographic. Beverages infused with collagen, fibre, probiotics, and natural botanicals are now widely available across supermarkets and cafés.
This strategy not only addresses the demand for health benefits but also offers a premium product experience, aligning with the trend toward personal wellness.
Regulatory Landscape and Its Impact
Labelling and Composition Regulations
In Canada, regulatory clarity is essential for non-alcoholic beverage producers. Beverages with less than 1.1% ABV are legally considered food products, which requires them to comply with food labelling regulations under the Canadian Food Inspection Agency (CFIA). As reported by BioFoodTech, this classification influences how beverages can be marketed and what claims can be made.
From April 1, 2025, all new listings in the low-alcohol, dealcoholised, or non-alcoholic beverage categories must fully comply with CFIA’s updated labelling regulations, according to MBLL Partners. This includes clear indications of alcohol content, nutritional facts, and health claims.
Sustainability Policies
Canada’s regulatory bodies are increasingly focused on environmental outcomes. Provincial and federal initiatives are encouraging beverage manufacturers to adopt sustainable practices. From single-use plastic bans to extended producer responsibility (EPR) schemes, the regulatory environment is pushing for cleaner production and responsible packaging.
Companies that pre-emptively embrace these policies are likely to enjoy competitive advantages, both in terms of compliance and consumer perception.
Future Outlook for the Canadian Beverage Market
Continued Growth in Non-Alcoholic and Functional Beverages
The Canadian market is poised for continued expansion in non-alcoholic and functional beverages. Consumers are seeking products that align with both health and environmental values, indicating that demand will remain strong. Companies that can deliver innovation in flavour, function, and sustainability will be well positioned to lead the next phase of market growth.
Challenges and Opportunities
Despite the positive outlook, the industry must navigate challenges such as supply chain volatility, shifting consumer behaviour, and complex regulatory updates. However, these hurdles also create opportunities for brand distinction. Companies that embrace transparency, local sourcing, and digital innovation will be able to build trust and loyalty.
Emerging technologies—such as AI-driven flavour development, blockchain for supply chain transparency, and smart packaging—may further redefine the competitive landscape.
Actionable Recommendations
1. Invest in Product Innovation
Develop beverages that meet modern consumer expectations by incorporating functional ingredients, wellness attributes, and low- or no-alcohol formats. Consider launching limited-edition or seasonal products to keep the brand fresh and relevant.
2. Adopt Sustainable Practices
Implement sustainable packaging solutions, such as recyclable, biodegradable, or refillable containers. Conduct a full sustainability audit to identify areas for improvement across the product lifecycle.
3. Localise Offerings
Tailor flavour profiles, branding, and marketing to resonate with regional Canadian tastes and cultural values. Leverage partnerships with local growers or indigenous communities to source unique ingredients.
4. Stay Informed on Regulations
Maintain proactive engagement with CFIA updates and provincial sustainability policies. Ensure all product labelling, advertising, and packaging meet current and future compliance standards to avoid regulatory hurdles.
5. Leverage Digital Marketing
Use social media platforms, influencer partnerships, and content marketing to engage directly with younger demographics. Highlight health benefits, sustainability efforts, and product transparency to build authenticity and brand affinity.
In Summary
The global beverage industry is at a pivotal moment of transformation. In Canada, these shifts are not just being observed—they are actively shaping consumer habits, regulatory expectations, and competitive strategies. By staying ahead of trends in health, sustainability, and innovation, Canadian beverage companies can not only adapt but lead in a rapidly evolving marketplace. The key lies in understanding global movements and translating them into locally relevant, forward-thinking solutions.
Methodology
This report draws on the latest market data, trend analysis, and industry forecasts from authoritative sources including Grand View Research, Financial Times, and national statistics platforms. It integrates qualitative insights with quantitative findings to provide a balanced overview. Canadian market impact is contextualised using local data and regulatory updates. The structure prioritises clarity and strategic relevance for stakeholders. This approach ensures the report is both evidence-based and actionable.
Custom Reports
For further inquiries or custom reports, please contact: richard@bevera.ca or daniel@bevera.ca.
