Krista Scaldwell
President,
Canadian Beverage Association
With 85 per cent of non-alcoholic beverages produced in Canada, consumers should feel confident walking down the beverage aisle.
Most Canadians might not realize it, but when they reach for a soft drink, energy drink, bottled water, or juice, they are supporting local jobs. While well-known brands are enjoyed around the world, the vast majority of products sold in Canada are made in Canadian facilities by Canadians. This practice ensures freshness, lowers transportation costs, and improves supply chain efficiency. It also sustains a large network of suppliers, distributors, and retailers who rely on the industry’s stability. Unfortunately, rising costs, tariffs, and supply chain issues threaten this vital sector—and, by extension, Canadian consumers and businesses.
A highly efficient, localized industry
The non-alcoholic beverage sector functions uniquely, balancing global brand recognition with local production. Approximately 85 per cent of non-alcoholic beverages sold in Canada are produced, distributed, and enjoyed in communities across the country. This robust domestic manufacturing presence ensures efficiency, supports jobs, and strengthens local supply chains.
Beyond beverage production, this sector plays a vital role in Canada’s broader economy. According to the Conference Board of Canada report, The Non-alcoholic Beverage Sector in Canada: A Study of Economic Impact and Consumption, the industry generated over $5 billion in GDP and supports 55,868 full-time equivalent jobs across over 120 communities nationwide. Employment opportunities extend across various sectors, including manufacturing, finance, transportation, and retail, positioning the beverage sector as a key economic driver for communities of all sizes.
Investments in local production and economic growth
Canada’s beverage sector continues to make significant investments in domestic manufacturing. From 2017 to 2021, the industry allocated over $500 million to new machinery, equipment, construction, and intellectual property. These investments help to keep the sector competitive, bolster local economies, and adapt to changing consumer demands.
However, continued growth relies on stable trade policies, predictable supply chains, and policies that encourage domestic recycling and material processing. Without these, the cost of producing beverages in Canada could rise, forcing companies to make difficult pricing, production, and employment decisions.
Tariffs and supply chain challenges affect more than just beverages
In the current economic climate, Canada’s beverage sector faces mounting challenges due to tariffs and supply chain disruptions. Many beverage inputs — including juice concentrates, syrups, and flavourings — are subject to tariffs when imported into Canada. These added costs are likely to contribute to increased grocery cost inflation.
Tariff threats have also introduced uncertainty to the beverage packaging supply chain. Numerous beverage companies operating in Canada depend on a combination of domestic and international suppliers for packaging materials. The degree of dependence on U.S. containers and raw materials varies among companies. Some leading manufacturers have integrated supply chains across North America, while others focus more on domestic sourcing. Any disruptions to this system, such as tariffs on aluminum, plastic, or transportation delays, can result in increased production costs.
How consumers can support Canadian beverage manufacturing
With growing concerns about food inflation and economic uncertainty, many Canadians are seeking to make informed purchasing decisions. Some consumers rely on websites and social media lists that purport to identify Canadian-made products. While these resources may be well-intentioned, they can occasionally be misleading or inaccurate.
The Canadian Beverage Association (CBA) encourages consumers to rely on the most accurate and verifiable source of information: on-pack labelling. The best ways to determine where a beverage is produced are by checking the packaging for the product’s country of manufacture or by contacting the manufacturer directly. Consumers can feel confident that they are supporting local jobs and businesses when they purchase a non-alcoholic beverage in Canada.
Conclusion
Canada’s non-alcoholic beverage sector significantly contributes to the economy, employing tens of thousands and making substantial investments in domestic production. With roughly 85 per cent of beverages sold in Canada being produced locally, the industry plays a crucial role in supporting well-paying jobs in communities across the country. However, tariffs, disruptions in the supply chain, and misinformation about product origins could undermine these benefits.
To ensure the continued success of Canadian beverage manufacturing, governments must acknowledge the effects of trade barriers and supply chain limitations. Consumers, for their part, should feel assured that their beverage purchases support Canadian jobs. By collaborating, we can safeguard an industry that not only satisfies our thirst but also sustains employment, investment, and economic resilience in Canada.
To learn more, visit canadianbeverage.ca.
