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The numbers are as sobering as a zero-proof margarita.
Canadians are buying less alcohol, leading to the largest annual drop in beer, wine and spirits sales in the 20 years Statistics Canada has tracked the data, according to the agency’s latest report.
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 that same period. That’s because sales by volume dropped for the fourth year in a row as Canadians of legal drinking age purchased fewer drinks per week.
Alcohol culture is shifting globally, with younger generations leading the change to a more sober lifestyle, explained Rod Phillips, professor of history at Carleton University in Ottawa who specializes in the history 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,” Phillips told CBC News.
“It’s generational, but also broadly social, and certainly international.”
On average, Canadians bought 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 Statistics Canada.
Beer, wine, and spirits sales all fell in both dollar amount and volume. Ciders and coolers were the only category to grow in that time period, the agency noted, though they remain the smallest share of the market at 9.3 per cent of total alcohol sales.
Culture shift and cost
Recent studies, reports and polls have all shown that younger generations are drinking less than older adults.
You can see the shift in the data — and in daily life — through the surge in non-alcoholic drink options and the rise of “soft clubbing” and morning raves among Gen Z, gatherings that emphasize connection over substances.
Phillips said younger people are also more receptive to warnings about the health consequences of alcohol, including links to cancer and heart disease, as well as overall well-being.
“That when you go out and drink one night, the next morning you either have a hangover or just don’t feel 100 per cent,” he said.
At the same time, alcohol has become more expensive. Inflation, climate impacts on scotch-makers and vineyards, and tariffs on the aluminum used in cans, have all contributed to higher costs.
The cost of buying alcohol in stores rose 1.6 per cent, according to Statistics Canada. In the most recent inflation report, alcohol purchased in licensed restaurants and bars in January was up 9 per cent from a year earlier, though the data was influenced by last year’s GST/HST break.
A November survey by Angus Reid for Restaurants Canada found 32 per cent of Canadians surveyed said they cut back on alcohol purchases to save money.
“The decline in alcohol consumption has had a significant impact on the restaurant industry,” Chris Elliott, Restaurant Canada’s chief economist, told CBC News.
Based on industry averages, alcohol accounted for 21.1 per cent of total revenues at full-service restaurants in 2013, but fell to 17.1 per cent by 2023, the most recent year available, Elliott said.
“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.”
Bars and breweries closing
In its Thursday report, Statistics Canada said beer sales in 2024-2025 fell 1.6 per cent to $9.1 billion, while volume fell 3.8 per cent to the equivalent of 3.1 standard bottles per week per person of legal drinking age. It was the ninth consecutive annual decline in beer sales by volume.
Wine sales fell 2.2 per cent to $7.7 billion in 2024-2025. Volume also fell for the fourth year in a row, to the equivalent of 1.9 glasses per week per person of legal drinking age. And sales of
Spirits sales fell 3.2 per cent to $6.7 billion, while volume fell 4.4 per cent to the equivalent of 2.2 shots per week.
With beer sales down, the number of craft breweries across Canada is starting to shrink after years of unprecedented growth. Experts say the decline is partly due to changing consumer drinking habits.
Craft breweries are closing across Canada as sales decline, Elliot said, and bars are closing as well. He said Canada had nearly 9,000 bars and nightclubs in 2000, compared with just 3,721 in 2025.
Meanwhile, global wine consumption is at its lowest level since 1961, according to the International Organisation of Vine and Wine, citing inflation, lifestyle changes, shifting social habits and generational changes in consumer behaviour.
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 as drinking habits changed.
A domestic boost
It’s not all bad for the alcohol industry. Domestic sales edged up to represent 60.6 per cent of total alcohol sales in Canada, up from 59 per cent a year earlier, according to Statistics Canada. The domestic share increased across all drink categories.
Perhaps most notable, though, was a 3.9 per cent decrease in imported wine sales, and a 1.9 per cent increase in domestic.
“This was the first time imported wine sales have decreased since Statistics Canada began tracking alcohol sales by origin in 1992/1993,” the agency said.
In February 2025, most provinces pulled millions of dollars’ worth of U.S. wine and spirits from store shelves in response to U.S. President Donald Trump’s decision to impose a 25 per cent tariff on Canadian goods.
The Statistics Canada report only includes data to the end of March 2025, but captures at least a month of the impact. The agency said alcohol imports from the U.S. fell 5.4 per cent from the previous fiscal year.
Sales of wines made from Ontario grapes surged after the LCBO pulled U.S. labels from shelves, Michelle Wasylyshen, president and CEO of Ontario Craft Wineries, told CBC News in February.
“It’s been huge.”
