Alcohol sales in Canada have recorded their largest annual decline since tracking began, according to a new report from Statistics Canada.
The report shows that between April 1, 2024 and March 31, 2025, alcohol sales dropped three per cent by volume to 2.9 billion litres, marking the fourth consecutive year of declining alcohol consumption.
Liquor authorities and retailers across Canada sold $25.8 billion worth of alcoholic beverages, representing a 1.6 per cent drop compared with the previous fiscal year, despite alcohol prices increasing by roughly 1.6 per cent during the same period.
Beer Sales Continue Long-Term Decline
Beer remained the most popular alcoholic beverage in Canada but continued a long downward trend.
Sales of beer fell 1.6 per cent to $9.1 billion, while volume sales dropped 3.8 per cent to 1.87 billion litres in the 2024–25 fiscal year.
This marks the ninth consecutive annual decline in beer sales by volume, though beer still accounted for 35.1 per cent of total alcohol sales, maintaining its position as the country’s top-selling alcoholic beverage.
Wine Sales Also Fall
Wine sales also declined, dropping 2.2 per cent to $7.7 billion during the fiscal year.
The decline was driven largely by a 3.9 per cent drop in imported wine sales, the first decrease in imported wine sales since Statistics Canada began tracking them in the early 1990s.
Imported wine still accounted for about 70 per cent of all wine sales in Canada.
Meanwhile, domestic wine sales rose slightly by 1.9 per cent, reaching $2.3 billion.
Spirits Sales Decline
Sales of spirits also fell, declining 3.2 per cent to $6.7 billion.
By volume, spirits sales dropped 4.4 per cent to 177 million litres. The most popular spirits remained whisky, vodka and liqueurs, which together made up the majority of sales.
Ciders and Coolers See Growth
The only alcoholic beverage category that saw growth was ciders and coolers.
Sales in this segment increased 4.8 per cent to $2.4 billion, while volume rose 2.2 per cent to 385 million litres.
Cannabis Sales Continue Rising
While alcohol sales declined, the report noted continued growth in Canada’s legal cannabis market.
Recreational cannabis sales reached $5.5 billion in 2024–25, an increase of 6.1 per cent compared with the previous year.
The report also found significant regional differences, with the Yukon reporting the highest cannabis spending per person, while Quebec recorded the lowest levels, partly due to stricter regulations on certain cannabis products.
Analysts say the data suggests changing consumer habits in Canada, with younger consumers in particular shifting away from alcohol toward alternatives such as cannabis and ready-to-drink beverages.