Why Value and Transparency Are Reshaping Canada’s Coffee Industry

At the Coffee Association of Canada’s West Coast Connect event in Delta, British Columbia, Swiss Water hosted industry leaders who emphasized the growing importance of value and transparency in today’s market.

Lisa Covens, Senior Vice President at Leger, opened the discussion by stating that seven in ten Canadians view the economy as declining, a perception that’s directly influencing their financial decisions.

Consumers are losing confidence in their household finances and responding to rising global costs by adjusting their spending habits, even reconsidering purchases like their daily coffee.

Operators feel the pinch, too. As supply costs rise and consumer expectations shift, businesses must take action to stay competitive in today’s value-driven market.

“Coffee is a 35-billion-dollar industry in Canada” says Robert Carter, the President of the Coffee Association of Canada. Yet, the industry finds itself at a crossroads. Over the past few years, the c-price has climbed steadily and reached record highs during the last four months. In response, roasters, exporters, and producers are proceeding with extra caution.

“The headwinds we’re facing right now are both significant and unprecedented,” says Aron Bjornson, Vice President of Marketing and Foodservice National Accounts for Canterbury Coffee, which has served Canadian businesses since 1981. “Volatile green coffee prices, along with rising costs for packaging, shipping, and energy, are putting operators under immense pressure.”

Even routine tasks have grown more complex. “Fixing coffee used to be straightforward,” Bjornson explains. But with “the industry grappling with price elasticity, many operators haven’t been able to adjust pricing as quickly as needed. That delay in cost recovery is straining every part of the business.”

The cost of doing business in coffee is rising at every stage, and consumers often overlook the true value behind their daily brew. Prices at the counter may seem high, but they reflect increases across the entire supply chain.

Green coffee costs are climbing, and so are expenses for shipping, importing, and packaging. In cafés, operators face higher prices on essentials like cups, lids, milk, and syrups, while overhead costs like rent, electricity, and labour continue to grow.

These pressures are beginning to reach the consumer, who is more price-conscious than ever. However, as Carter points out, Canada’s conversation around coffee pricing remains underdeveloped. “The true cost of coffee, and what consumers are actually paying, has been underexplored for years,” he says. “High bean prices can benefit farmers, but there must be a balance between fair compensation at origin and fair pricing for customers.”

To keep the industry viable, businesses must advocate for both sides: ensuring fair pay for producers and delivering value to consumers. That means driving transparency, investing in education, and reshaping how the market talks about what a cup of coffee is truly worth.

As pricing pressures intensify, consumer priorities are shifting, not just in how much they’re willing to pay, but in what they’re paying for. “Fairtrade Organic certifications used to drive specialty coffee sales, but we see that trend fading,” says Bjornson. Operators now report that customers prioritize consistent quality, reliable service, and locally sourced products over certifications alone.

For small-scale producers, maintaining certifications is becoming increasingly challenging. “Certifications are expensive and exhaust farmers,” Bjornson explains. “If they’re unable to move certified volumes at a premium price, the return on certification investment diminishes.” Faced with stretched budgets, some producers now question whether Fairtrade, Organic, or other labels move the needle at all.

To stay competitive, brands need to integrate authentic storytelling into their customer experience. Whether emphasizing direct-trade partnerships or sharing detailed origin stories, today’s coffee consumers want transparency and connection. “Buyers seek meaningful purpose in their purchases,” Bjornson adds. “They want to understand the impact of their choices. Storytelling remains a critical tool to build that connection.”

From Bar Tabs to Baristas

Despite inflation, coffee remains one of the most accessible indulgences for Canadian consumers. Compared to alcoholic beverages, specialty coffee is still an affordable treat, making cafés an attractive destination.

Out-of-home coffee consumption is on the rise, led in part by Gen Z.^[1]  This generation is redefining the café experience, treating it not as just a place to grab a drink, but as a space to socialize, discover new flavours, and connect with brands that align with their values. Their preferences lean toward fun, flavourful, and highly shareable non-alcoholic beverages, often chosen with social media in mind.

Bjornson identifies two distinct customer segments: bargain hunters chasing hyper-value, and experience seekers craving premium moments. Gen Z falls firmly in the latter. They’re not just buying a beverage, they’re investing in community, storytelling, and brand alignment. Brands that deliver through events, influencer collaborations, and immersive experiences earn their loyalty.

“We’ve seen guests show up at cafés as early as 7 a.m to dance to a DJ set with an espresso in hand,” says Bjornson. “It’s joyful, it’s wholesome, and it’s happening across North America.” In this landscape, coffee ceases to be merely a drink, it’s a bridge to culture, and connection.

^[1] Coffee Association of Canada December 2024 Report

Coffee’s Still Hot

As Canada’s coffee industry evolves, operators must act with agility. Demand for coffee remains strong^[2] and it continues to be one of the most resilient and relevant foodservice categories. But driving growth now requires more than quality beans, businesses must actively meet rising consumer expectations around value, transparency, and purpose.

“We need to continue to come together and have open conversations about how the coffee industry will move forward,” urges Bjornson.

To succeed, brands must educate customers, lead with transparency, and challenge traditional business models. Resilience isn’t just an advantage, it’s a requirement

^[2] Coffee Association of Canada December 2024 Report