Canadians Drink Less: Alcohol Sales Drop to 20-Year Low

Canadians are reassessing their relationship with alcohol, leading to the largest annual decline in sales of beer, wine and spirits in two decades. A new report from Statistics Canada reveals a 1.6 per cent drop in alcohol sales to $25.8 billion for the 2024-2025 fiscal year, even as prices increased by 1.6 per cent during the same period. This shift isn’t about cost alone; it signals a broader cultural change in how Canadians approach consumption.

A Generational Shift and Rising Costs

The decline in volume – the fourth consecutive year – points to a fundamental shift in drinking habits. On average, Canadians purchased the equivalent of eight drinks per week between March 2024 and March 2025, down from 8.7 a year earlier and 9.7 a decade ago, according to the agency. This trend aligns with a global movement, particularly among younger generations, towards more moderate lifestyles. Rod Phillips, a professor of history at Carleton University specializing in the history of alcohol, explained to CBC News that a growing number of people no longer view alcohol as a prerequisite for social enjoyment. “We’re moving to… a position where a lot of people are simply not accepting that alcohol is a pre-condition for having a good time with your friends or enjoying a meal,” he said.

This change is supported by broader research. Studies, reports, and polls consistently show younger adults consuming less alcohol than previous generations. This is manifesting in the rise of non-alcoholic alternatives and social activities that don’t center around alcohol, such as “soft clubbing” and morning raves, as highlighted by Eventbrite and CNN.

Beyond changing attitudes, economic factors are also playing a role. Inflation, coupled with climate-related impacts on wine and spirits production – such as challenges faced by Scotch whisky makers and vineyards – and tariffs on aluminum used for beverage cans, have all contributed to higher prices. The cost of alcohol purchased in stores rose 1.6 per cent, while alcohol purchased in licensed restaurants and bars saw a 9 per cent price increase in January, though this figure was influenced by the removal of the GST/HST break.

Impact on the Restaurant Industry and Alcohol Sales Breakdown

The decline in alcohol consumption is already impacting the restaurant industry. According to Chris Elliott, chief economist at Restaurants Canada, alcohol accounted for 21.1 per cent of total revenues at full-service restaurants in 2013, but this figure fell to 17.1 per cent by 2023. “The overall impact is that people are spending less when they dine out, in part due to not ordering alcohol or reducing their alcohol consumption,” Elliott told CBC News. A November survey by Angus Reid for Restaurants Canada found that 32 per cent of Canadians had cut back on alcohol purchases to save money.

Looking at specific categories, beer sales fell 1.6 per cent to $9.1 billion in 2024-2025, with volume declining 3.8 per cent to the equivalent of 3.1 standard bottles per week per person of legal drinking age. This marks the ninth consecutive year of declining beer sales by volume. Wine sales also decreased, falling 2.2 per cent to $7.7 billion, with volume down for the fourth year in a row to 1.9 glasses per week per person. Spirits sales experienced a 3.2 per cent decline to $6.7 billion, with volume falling 4.4 per cent to 2.2 shots per week. The only category to observe growth was ciders and coolers, though they still represent a relatively small portion of the market at 9.3 per cent of total alcohol sales.

Domestic Alcohol Gains Ground Amidst Trade Disputes

Despite the overall decline, domestic alcohol sales are showing resilience. They edged up to represent 60.6 per cent of total alcohol sales in Canada, up from 59 per cent a year earlier. This increase was seen across all drink categories. Notably, imported wine sales decreased by 3.9 per cent, while domestic wine sales increased. This shift coincides with February 2025, when most provinces removed millions of dollars’ worth of U.S. Wine and spirits from store shelves in response to U.S. Tariffs. Michelle Wasylyshen, president and CEO of Ontario Craft Wineries, told CBC News that sales of wines made from Ontario grapes surged following the removal of U.S. Labels from the LCBO.

Brewery Closures and a Global Trend

The changing landscape is leading to closures within the alcohol industry. Craft breweries are closing across Canada as sales decline, and bars are also facing challenges. Canada had nearly 9,000 bars and nightclubs in 2000, but that number has dwindled to just 3,721 in 2025. This trend mirrors a global decline in alcohol consumption. The International Organisation of Vine and Wine reports that global wine consumption is at its lowest level since 1961, citing inflation, lifestyle changes, and generational shifts in consumer behavior. Bloomberg reported last fall that shares of the world’s top publicly listed beer, wine, and spirits makers lost a combined $830 billion US over the previous four years due to these changing habits.

What’s Next for the Canadian Alcohol Market

The immediate future will likely see continued pressure on alcohol sales volumes, driven by both economic factors and evolving consumer preferences. The impact of the U.S. Tariffs and the resulting shift towards domestic products will continue to unfold. Industry stakeholders will be closely monitoring Statistics Canada’s future reports for further insights into these trends. Further data releases from Statistics Canada, expected in late 2026, will provide a clearer picture of the long-term effects of these shifts and the evolving dynamics of the Canadian alcohol market.