According to a recent Statistics Canada report, federal and provincial governments earned a total of $15.7 billion from the control and sale of alcohol and recreational cannabis in the fiscal year ending March 31, 2024. Of this total, $13.5 billion came from alcohol sales, showing a slight decrease of 0.5%, while recreational cannabis sales reached $2.2 billion, marking an impressive increase of 12.6%. This total includes net income from provincial liquor and cannabis authorities, excise taxes, retail sales taxes, other specific taxes, and licences and permits.
Historic Drop in Alcohol Sales Volume
Despite a 2.5% increase in the price of alcoholic beverages from March 2023 to March 2024, total alcohol sales dropped by 0.1%, totaling $26.2 billion for the fiscal year ending March 31, 2024. On a volume basis, sales of alcohol fell by 3.8%, marking the largest volume decline on record since Statistics Canada began tracking alcohol sales in 1949. In total, 2,988 million litres of alcohol were sold in 2023/2024. On average, Canadians of legal drinking age consumed the equivalent of 8.7 standard alcoholic beverages per week, down from 9.2 in the previous fiscal year, explained Statistics Canada.
Domestic Products Dominate Alcohol Sales
In 2023/2024, domestic products accounted for 59.0% of all alcohol sales in Canada, a slight increase from 58.7% in the previous year. Beer, at 88.0%, and ciders and coolers, at 85.0%, represented the highest proportions of domestic sales, while spirits (46.1%) and wine (28.8%) had smaller shares.
Record Decline in Beer Sales Volume
Beer sales experienced a record decline of 4.5% by volume, totaling 1,950 million litres in 2023/2024. This marks the eighth consecutive year of volume decline for beer. Beer sales by dollar value also fell by 1.3%, totaling $9.2 billion. Despite this decline, beer remains the top-selling alcoholic beverage, representing 35.1% of total sales, though this is down significantly from two decades ago when beer accounted for nearly half (49.4%) of all alcoholic beverage sales, noted Statistics Canada.
Wine and Spirits Sales Drop
Wine sales also saw a decline in both volume and value. Volume fell by 4.8%, totaling 476 million litres, marking the third consecutive year of decline. Wine sales by value decreased by 0.3% to $7.8 billion in 2023/2024. Spirits sales dropped by 0.5%, totaling $6.9 billion, with volume declining by 3.9% to 184.9 million litres. Whisky, vodka, and liqueurs were the top-selling spirits by share.
Ciders and Coolers See Growth
The only alcoholic beverage category to experience growth in 2023/2024 was ciders and coolers, which saw a 6.9% increase in sales, reaching $2.3 billion. The volume of ciders and coolers sold also rose by 1.3%, totaling 377 million litres. The total sales were equivalent to approximately 0.8 standard drinks per week for each Canadian of legal drinking age.
Cannabis Sales Continue to Rise
Recreational cannabis sales saw a significant rise of 11.6%, reaching $5.2 billion in 2023/2024. This growth, though slower than the previous year’s 15.8% increase, reflects continued consumer demand for cannabis products. The increase in cannabis sales occurred despite a 2.8% decrease in the price of cannabis products during the same period, according to Statistics Canada.
Inhaled extracts emerged as the fastest-growing cannabis category, with a remarkable 31.4% increase in sales, accounting for over two-thirds of the overall $0.5 billion increase in cannabis sales. Over the past three years, inhaled extracts have steadily gained market share, with dried cannabis losing ground. In 2023/2024, dried cannabis accounted for 61.4% of the market, down from 71.0% in 2021/2022, while inhaled extracts increased to 29.3% from 18.1%.
Provincial Differences in Cannabis Consumption
Cannabis consumption varied significantly across Canada, with Yukon having the highest per-person sales at $356 per person of legal age. In contrast, Quebec had the lowest at $96 per person, partly due to the province’s restrictions on cannabis vapes and topicals and its limited edible offerings.
This report highlights shifting trends in Canadian alcohol and cannabis consumption, with changes in beverage preferences and a continued rise in recreational cannabis sales. These patterns will likely influence both the market and government revenues in the coming years.
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