Alcoholic Drinks - Canada

The Alcoholic Drinks market in Canada has been experiencing significant growth in recent years.

Customer preferences: Canadian consumers have shown a growing preference for craft beer and premium spirits. This shift in preference can be attributed to a desire for unique and high-quality products. Craft beer has gained popularity due to its diverse flavors and the emphasis on local ingredients and brewing techniques. Similarly, premium spirits are sought after for their superior quality and distinct flavors.

Trends in the market: One of the key trends in the Canadian Alcoholic Drinks market is the rise of ready-to-drink (RTD) beverages. RTDs, such as canned cocktails and wine coolers, have gained popularity among consumers due to their convenience and portability. These beverages are often favored by younger consumers who are looking for a refreshing and easy-to-drink option. Another trend in the market is the increasing demand for low-alcohol and non-alcoholic beverages. Health-conscious consumers are opting for these alternatives as they seek to reduce their alcohol intake without compromising on taste. This trend is also driven by a growing awareness of the negative health effects associated with excessive alcohol consumption.

Local special circumstances: Canada has a thriving craft beer industry, with numerous microbreweries and brewpubs across the country. The local craft beer scene has been fueled by a strong sense of community and a desire to support local businesses. This has contributed to the growth of the craft beer segment in the Alcoholic Drinks market. Furthermore, Canada has a unique drinking culture, with certain provinces having their own regulations and restrictions on the sale and consumption of alcohol. For example, some provinces have government-operated liquor stores, while others allow private retailers to sell alcohol. These local regulations can impact the availability and accessibility of alcoholic beverages in different regions of the country.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in Canada can be attributed to several underlying macroeconomic factors. Firstly, the country's strong economy and high disposable income levels have allowed consumers to spend more on premium and craft alcoholic beverages. Additionally, changing demographics, with a growing population of millennials and young professionals, have contributed to the increased demand for innovative and unique alcoholic drinks. Furthermore, the tourism industry in Canada has played a significant role in driving the growth of the Alcoholic Drinks market. The country attracts a large number of international tourists who are eager to explore the local food and beverage scene, including Canadian beer and spirits. This has created opportunities for local producers to showcase their products to a global audience and expand their market reach. In conclusion, the Alcoholic Drinks market in Canada is experiencing growth due to shifting customer preferences towards craft beer and premium spirits, as well as the rise of RTDs and low-alcohol alternatives. The local special circumstances, such as the thriving craft beer industry and unique drinking culture, also contribute to the market's development. Underlying macroeconomic factors, including a strong economy and the growth of the tourism industry, further drive the growth of the Alcoholic Drinks market in Canada.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.