Market Insights Consumer Alcoholic Drinks

Spirits - Canada

Canada

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to €6.8bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to €4.7bn in 2024.
Revenue, combined amounts to €11.5bn in 2024.
The revenue, at home is expected to grow annually by 3.31% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated in China (€134,300m in 2024).
In relation to total population figures, the average revenue per capita, at home of €174.90 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 457.2m L by 2024.
Volume, out-of-home is expected to amount to 75.5m L in 2024.
Volume, combined is expected to amount to 532.7m L in 2024.
The Spirits market is expected to show a volume growth, at home of 3.1% in 2025.
The average volume per person, at home in the Spirits market is expected to amount to 11.69L in 2024.

Key regions: United States, United Kingdom, Worldwide, United Kingdom, Australia

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

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Analyst Opinion

The Spirits market in Canada has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Canadian consumers have shown a growing interest in premium and craft spirits, as they seek unique and high-quality products. This shift in preferences can be attributed to a desire for more sophisticated and diverse drinking experiences. Additionally, there has been a rise in demand for spirits that are locally produced, reflecting a preference for supporting local businesses and the desire for products with a sense of authenticity.

Trends in the market: One of the key trends in the Canadian Spirits market is the increasing popularity of whisky. Canadian whisky has gained recognition globally for its smooth and versatile flavor profile, attracting both domestic and international consumers. This trend can be attributed to the growing interest in whisky as a sipping spirit and the success of Canadian whisky brands in international competitions. Another trend in the market is the rise of flavored spirits. Flavored vodkas, gins, and rums have gained popularity among consumers who are looking for unique and innovative flavors to enhance their drinking experience. This trend is driven by the desire for experimentation and the growing popularity of cocktails.

Local special circumstances: The Canadian Spirits market is influenced by the country's strict regulations and taxation policies. The provincial liquor control boards play a significant role in the distribution and sale of spirits, which can impact the availability and pricing of products. Additionally, the high taxes imposed on alcohol in Canada can affect consumer purchasing decisions and the overall market dynamics.

Underlying macroeconomic factors: The growth of the Spirits market in Canada can also be attributed to favorable macroeconomic factors. The country's strong economy and high disposable income levels have contributed to increased consumer spending on premium and craft spirits. Additionally, the growing tourism industry in Canada has provided opportunities for the spirits market to cater to both domestic and international tourists. In conclusion, the Spirits market in Canada has witnessed growth due to changing customer preferences towards premium and craft spirits, the popularity of whisky, the rise of flavored spirits, local special circumstances such as strict regulations and taxation policies, and favorable macroeconomic factors. As consumer tastes continue to evolve, it is expected that the market will continue to expand, offering new opportunities for both domestic and international spirits brands.

Methodology

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.