Canadian Alcohol Sales Plummet to 20-Year Low, StatsCan Reports
Recent data from Statistics Canada reveals a notable decline in alcohol sales across the country, reaching a 20-year low. For the 2024-2025 fiscal year, alcohol sales fell by 1.6% to $25.8 billion, despite an equal increase in prices. This marks the fourth consecutive year of decreasing sales volume as Canadian adults buy fewer drinks weekly.
Sales Trends in Alcohol Consumption
According to the report, Canadians consumed an average of eight drinks per week from March 2024 to March 2025. This is a decrease from 8.7 drinks the previous year and 9.7 drinks a decade ago. Both beer and wine sales dropped in both value and volume during the same time period, while the only category to see growth was ciders and coolers, which still hold a modest 9.3% market share.
Cultural Shift in Drinking Habits
Experts attribute this decline to changing cultural attitudes toward alcohol, particularly among younger generations. Rod Phillips, a history professor at Carleton University, highlighted that many young people view alcohol less as a necessity for socializing. Increasing awareness of the health risks associated with drinking also plays a role. “Younger people are responding to health warnings more readily,” Phillips noted.
Economic Factors
The report also highlights rising costs that may impact consumer choices. In total, the price of alcohol in stores rose 1.6%, while drinking at licensed restaurants and bars saw an even steeper increase of 9% in January 2025. The rise in prices can be linked to inflation and other market factors like climate impacts affecting production.
- Beer Sales: Decreased by 1.6% to $9.1 billion.
- Wine Sales: Decreased by 2.2% to $7.7 billion.
- Spirits Sales: Experienced a drop of 3.2% to $6.7 billion.
Impact on the Restaurant Industry
As alcohol consumption decreases, its financial impact on the restaurant sector becomes evident. A survey conducted by Angus Reid indicated that 32% of Canadians reduced their alcohol purchases to save money. This change has led to a drop in alcohol’s share of restaurant revenues, shrinking from 21.1% in 2013 to 17.1% by 2023.
Craft Breweries and Bars on the Decline
The decline in beer sales has started to affect the craft brewery industry. Many craft breweries are closing due to shifting consumer habits. Currently, Canada boasts approximately 3,721 bars and nightclubs, a significant drop from nearly 9,000 in 2000.
Domestic vs. Imported Sales
On a positive note, domestic alcohol sales have risen to account for 60.6% of the total market, up from 59% the previous year. Notably, imported wine sales decreased by 3.9%, marking the first decline since Statistics Canada began tracking this data in 1992. The report acknowledged the impact of recent tariffs imposed on imports from the United States, which saw a 5.4% decrease in alcohol imports from that country.
This trend reflects how external economic factors are shaping the alcohol market in Canada, leading to an evolving landscape for consumers and the industry alike.
