Business Environment Profiles - Canada
Published: 07 October 2024
Per capita alcohol consumption
96 Liters
-0.6 %
This driver measures the annual per capita consumption of wine, beer, spirits and other alcoholic beverages sold in Canada. The population is measured as Canadians aged 15 years and older. Data is sourced from Statistics Canada and is measured in litres.
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Since 1960, per capita consumption of alcohol has fluctuated, rising to all-time high levels in the early 1908s, declining through the late 1990s and rising again to 107.3 litres in 2009. An aging and slow-growing population that is increasingly health-conscious has limited growth in alcohol and beer consumption specifically. Producers have reacted to these demographic-driven trends to sustain and gain market share by focusing on product quality and marketing, which has facilitated price increases. These price increases, combined with a shift toward premium products (also called premiumization), have nearly offset much of the decline in the volume of alcohol sold in Canada. Furthermore, most provinces have established minimum prices for alcoholic beverages, preventing overconsumption and, more importantly, limiting price-based competition among alcoholic beverage manufacturers and retailers.
The outbreak of the coronavirus pandemic in 2020 changed 'consumers' drinking habits, shifting places of consumption from bars and restaurants to home. As a result, off-premise sales of alcohol, including e-commerce and retail, increased substantially. During the first few months following the outbreak of the pandemic, alcohol consumption increased as some consumers stockpiled alcohol at home due to economic uncertainties and a high stress level. To assist the hospitality industry, the government relaxed regulations on alcohol availability and sales in 2020. For example, Ontario reduced minimum pricing for alcoholic beverages sold by licensed establishments, while British Columbia introduced wholesale pricing for the hospitality industry. Consequently, per capita consumption of alcohol increased 0.9% in 2020. The most common reasons for consumption were boredom, stress, and loneliness. Moreover, flexible work schedules made it more convenient for individuals to consume alcohol in 2020.
However, as restaurants and bars remained closed during the pandemic, consumption fell off. In 2021, per capita consumption of alcohol fell 2.0% despite a soft economic reopening at the time. Though vaccines were distributed and some bars and restaurants began to reopen, many were unable to operate at full capacity, while many potential customers still elected to stay at home. While the economy was fully reopened during 2022, interest rate hikes began to affect consumer budgets. Many individuals could not afford to go out to bars and restauarants, despite the fears of the pandemic being behind them. As a result, per capita consumption fell an additional 3.1% during 2022. In 2023, per capita consumption of alcohol increased 2.2%, despite rates remaining high. The economy in Canada remained resilient during much of the year, which led to positive consumer spending levels. However in 2024, consumption began to fall again as budgets became stressed by a prolonged period of high interest rates. Despite the threat of a recession being low, consumption of alcohol is set to sink by 0.1% during both 2024 and 2025.
Per capita consumption of alcohol is set to fall through the end of 2030, with factors like aging...
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