Canadians are drinking less alcohol, driving the largest annual drop in sales in 20 years, according to Statistics Canada data released this week. Sales of alcoholic beverages fell 1.6 per cent to $25.8 billion in the 2024-2025 fiscal year, despite a 1.6 per cent increase in prices during the same period.
The decline marks the fourth consecutive year of falling alcohol sales by volume, with Canadians of legal drinking age purchasing fewer drinks each week. On average, individuals consumed the equivalent of eight standard alcoholic beverages per week between March 2024 and March 2025, down from 8.7 the previous year and 9.7 a decade ago.
The shift in consumption patterns is being attributed to a number of factors, including changing generational attitudes and increased awareness of the health consequences of alcohol. “We’re moving to, I’m not going to say a post-alcohol society, but 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,” explained Rod Phillips, a professor of history at Carleton University specializing in the history of alcohol.
Sales declines were observed across beer, wine, and spirits. Beer sales fell 1.6 per cent to $9.1 billion, with volume down 3.8 per cent. Wine sales decreased 2.2 per cent to $7.7 billion, and spirit sales dropped 3.2 per cent to $6.7 billion. Ciders and coolers were the only category to experience growth, though they still represent a small portion of the overall market at 9.3 per cent of total alcohol sales.
The trend coincides with a broader cultural shift, particularly among younger generations, towards more sober lifestyles. Here’s reflected in the growing popularity of non-alcoholic beverages and social events that prioritize connection over substance use. 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.
The decline in alcohol consumption is impacting the hospitality industry. Chris Elliott, chief economist for Restaurants Canada, noted that alcohol accounted for 21.1 per cent of total revenues at full-service restaurants in 2013, but had fallen 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,” he said.
The number of bars and nightclubs in Canada has also decreased significantly, falling from nearly 9,000 in 2000 to just 3,721 in 2025. Craft breweries are also facing challenges, with some closing due to declining sales.
Despite the overall decline, domestic alcohol sales have seen a slight increase, representing 60.6 per cent of total sales in Canada, up from 59 per cent the previous year. This increase is partly attributed to the removal of U.S. Wine and spirits from provincial store shelves in February 2025, in response to tariffs imposed by the United States. Imports from the U.S. Fell 5.4 per cent.
Sales of Ontario wines surged following the LCBO’s decision to pull U.S. Labels, according to Michelle Wasylyshen, president and CEO of Ontario Craft Wineries. “It’s been huge,” she said.
Globally, wine consumption is at its lowest level since 1961, according to the International Organisation of Vine and Wine, citing factors such as inflation, lifestyle changes, and generational shifts in consumer behaviour. The world’s top beer, wine, and spirits makers have collectively lost $830 billion US in market value over the past four years, according to Bloomberg.
