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By 2025, the annual per capita consumption of alcoholic beverages in Canada is projected at 87.4 litres, marking a declining trend with a compound annual growth rate of -2.6% from 2020 to 2025. The shift towards home consumption during the COVID-19 pandemic in 2020 led to a 0.9% increase in alcohol consumption, spurred by government efforts to support the hospitality industry and alleviate economic stress. However, this temporary rise reverted as the pandemic persisted; by 2021, consumption had decreased by 2.0% owing to limitations on bar and restaurant operations. The economic reopening in 2022 didn't revive consumption levels as expected, due to interest rate hikes impacting consumer affordability. Consequently, per capita consumption fell further by 3.1% in 2022. Despite resilient economic conditions and consumer spending, consumption declined 6.7% in 2023 and a further 0.4% in 2024. During these years, the influence of an aging, health-conscious population has been pivotal, constraining alcohol consumption growth. Alcohol producers have adapted by enhancing product quality and targeting premium market segments, compensating for volume declines through strategic price increases. This 'premiumization' trend allowed many producers to maintain profitability despite reduced overall consumption.
Curious about what drives these trends? IBISWorld's analyst coverage on the per capita alcohol consumption includes detailled analysis on the current performance, outlook and industries affected.
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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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