Canadians are buying less alcohol, leading to the most significant annual drop in sales in the last 20 years, according to a recent Statistics Canada report. Sales of alcoholic beverages fell by 1.6% to $25.8 billion in the 2024-2025 fiscal year, despite a 1.6% increase in prices. This decline is attributed to Canadians purchasing fewer drinks per week.
The report indicates a shift in Canadian drinking habits, with overall alcohol sales volume decreasing by 3.0% to 2,898 million litres. This marks the fourth consecutive year of declining volume sales. Beer sales experienced a 1.6% drop to $9.1 billion, with volume falling by 3.8%. Similarly, spirit sales decreased by 3.2% to $6.7 billion, and volume fell by 4.4%. Wine sales also saw a decline in volume, dropping by 4.8%. The only category that saw growth was ciders and coolers, though they still represent a small portion of the overall market.
The decline in alcohol consumption is impacting various sectors. Government earnings from alcohol control and sales decreased by 4.2%, contributing to an overall 2.0% drop in federal and provincial government revenue from alcohol and cannabis. The restaurant industry is also feeling the effects, with alcohol accounting for a smaller percentage of total revenues at full-service restaurants. Chris Elliott, Restaurant Canada's chief economist, noted that people are spending less when dining out, partly due to reduced alcohol consumption.
Experts suggest that changing consumer preferences are driving this trend. Factors include generational shifts and broader social and international influences. As Canadians' drinking habits evolve, the alcohol industry and related sectors will need to adapt to these changing trends.
