Syrup & Flavouring Production in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: October 2023
NAICS 31193CARevenue
$492.5m
Past 5-Year Growth
Profit
$XX.Xm
Employees
1,079
Businesses
61
Wages
$XX.Xm
Syrup & Flavouring Production in Canada industry analysis
Syrup and flavouring producers in Canada manufacture beverage bases, such as concentrates and fountain syrups, and other flavouring syrups. Most industry products are used in the downstream manufacturing of finished beverages. Consequently, the Soda Production industry in Canada (IBISWorld report 31211aCA) is a major buyer of industry products. Demand from downstream manufacturers has declined in recent years, as many food and beverage producers have consolidated and begun producing syrups and flavourings in-house. Consequently, industry revenue has declined at a CAGR of 2.1% over the past five years and is expected to total $492.5 million in 2023, when revenue will jump by an estimated 0.3%.Canadian-made syrups and flavourings sold in export markets are estimated to generate 20.5% of industry revenue in 2023, down from 28.5% in 2018. Throughout 2023, exports have endured a decrease, primarily as the Canadian dollar is forecast to appreciate at a CAGR of 0.5%. This appreciation in the loonie has caused domestic goods to be more expensive for countries abroad, causing the total value of exports to decrease. Exports have declined at CAGR of 8.4% to $101.1 million throughout 2023. In addition, despite falling exports, the industry's profit margin is still expected to slightly increase throughout 2023.Industry performance relies heavily on downstream demand, particularly from food and beverage producers. Syrup and flavouring producers will be challenged by healthy eating trends that are decreasing consumer demand for sugary foods and beverages, which is expected to pressure profit as well. This changing market is expected to challenge many traditional industry products, but also boost demand for innovative new flavours and products, which could provide key opportunities for industry players in niche areas. As a result, revenue is forecast to decline at a CAGR of 0.7% over the five years through 2028 to total $475.0 million.
Trends and Insights
- Changing consumer preferences will erode demand. As Canadians become more health-conscious, demand for syrup and flavouring will decline.
- The majority of the concentrates, flavourings and syrups sold in hospitality and manufacturing markets are used in soda production. Flavouring syrups are by far the largest product for industry manufacturers.
- The geographic distribution of operators has generally followed the geographic distribution of soft drink manufacturers. Companies locate near major customers to reduce transportation costs.
- The industry’s major producers offer similar products, but fiercely guard their proprietary recipes. Their only major competition comes from one another, and the unassailable value of their brands has kept outsiders from driving down prices through competition.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 2.1 % over the past five years, to reach an estimated $492.5m in 2023.
Trends and Insights
Production is dominated by a small enterprises
- The largest players have solidified their position over the past decade, acquiring and divesting downstream bottling and distribution enterprises.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Healthy dietary trends will degrade demand, despite a strong economy
- Consumers' increasing health-consciousness will continue to hurt demand for soda, which has the potential to cripple the primary product offering of the industry's largest manufacturers.
Biggest companies in the Syrup & Flavouring Production in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Coca-Cola Canada Bottling Limited | 104.9 | 25.4 | 24.2 | |
Kerry Group PLC | 45.0 | 7.4 | 16.4 | |
Novotaste Corporation Inc. | 6.4 | N/A | N/A |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Liquid beverage bases , Fountain soft drink beverage bases and Flavouring syrups for desserts and home beverage use. Liquid beverage bases is the largest segment of the Syrup & Flavouring Production in Canada.
Trends and Insights
Liquid beverage bases
- Produced in syrup form, liquid beverage bases make up the single largest product segment produced within syrup and flavouring producers in Canada.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Canned Fruit & Vegetable Processing in Canada
- Seasoning, Sauce and Condiment Production in Canada
Complementors
- Chocolate Production in Canada
- Coffee & Tea Production in Canada
International industries
- Global Soft Drink & Bottled Water Manufacturing
- Syrup & Flavoring Production in the US
- Tea, Coffee and Other Food Manufacturing in Australia
- Soft Drink Manufacturing in Australia
- Tea, Coffee and Other Food Manufacturing in New Zealand
Table of Contents
About this industry
Industry definition
The Syrup and Flavouring Production industry in Canada primarily manufactures drink concentrates, flavouring syrup and related products for beverage manufacturers, soft drink production or soda fountain use. Establishments primarily producing maple syrup, chocolate syrup, flavouring extracts, powdered drink mixes or soft drinks are excluded from the industry.
What's included in this industry?
Beverage base productionBeverage concentrate productionFlavouring productionFruit syrup productionCompanies
Coca-Cola Canada Bottling LimitedKerry Group PLCNovotaste Corporation Inc.Purchase this report to view all 3 major companies in this industry.
Related Terms
FLAVOURINGSOFT DRINKCONCENTRATEFOUNTAIN SYRUPFINISHED BEVERAGEBEVERAGE BASEIndustry Code
NAICS 311930 - Syrup & Flavouring Production in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Changing consumer preferences will erode demand. As Canadians become more health-conscious, demand for syrup and flavouring will decline.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The majority of the concentrates, flavourings and syrups sold in hospitality and manufacturing markets are used in soda production. Flavouring syrups are by far the largest p...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The geographic distribution of operators has generally followed the geographic distribution of soft drink manufacturers. Companies locate near major customers to reduce trans...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each province in 2023
- Number and share of revenue each province accounts for in 2023
- Number and share of wages each province accounts for in 2023
- Number and share of employees in each province in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry’s major producers offer similar products, but fiercely guard their proprietary recipes. Their only major competition comes from one another, and the unassailable...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Coca-Cola is the industry behemoth, dominating all other producers. The company’s brands are globally renowned and everywhere recognized.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Coca-Cola Canada Bottling Limited's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Kerry Group PLC's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Novotaste Corporation Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Coca-Cola Canada Bottling Limited, and factors influencing its performance in the industry
- Description and key data for Kerry Group PLC, and factors influencing its performance in the industry
- Description and key data for Novotaste Corporation Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Producers follow strict CFIA guidelines on labelling and product content. Recalls and false content claims can prove ruinous for a producer’s reputation.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Multinational companies with greater resources are able to adjust quickly to market conditions. Their advantages allow them to generate a larger margin than small producers.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Assets (2016-2021)
- Liabilities (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Syrup & Flavouring Production industry in Canada in 2024?
The market size of the Syrup & Flavouring Production industry in Canada is $492.5m in 2024.
How many businesses are there in the Syrup & Flavouring Production in Canada industry in 2023?
There are 61 businesses in the Syrup & Flavouring Production industry in Canada, which has grown at a CAGR of 4.1 % between 2018 and 2023.
Has the Syrup & Flavouring Production industry in Canada grown or declined over the past 5 years?
The market size of the Syrup & Flavouring Production industry in Canada has been declining at a CAGR of 2.1 % between 2018 and 2023.
What is the forecast growth of the Syrup & Flavouring Production industry in Canada over the next 5 years?
Over the next five years, the Syrup & Flavouring Production industry in Canada is expected to decline.
What are the biggest companies in the Syrup & Flavouring Production market in Canada?
The biggest companies operating in the Syrup & Flavouring Production market in Canada are Coca-Cola Canada Bottling Limited, Kerry Group PLC and Novotaste Corporation Inc.
What does the Syrup & Flavouring Production in Canada include?
Beverage base production and Beverage concentrate production are part of the Syrup & Flavouring Production industry.
Which companies have the highest market share in the Syrup & Flavouring Production in Canada?
The company holding the most market share in Canada is Coca-Cola Canada Bottling Limited.
How competitive is the Syrup & Flavouring Production industry in Canada?
The level of competition is moderate and steady in the Syrup & Flavouring Production industry in Canada.
