Beer Consumption In Canada: Average Citizen's Perspective

The average Canadian of legal drinking age consumed 69.3 litres of beer in 2020, a 2.7% decrease from 2019. This decline in beer consumption is part of a broader trend away from beer and towards spirits and ready-to-drink (RTD) alternatives. In 2019, 39% of all beer sold in Canada was consumed by those aged 18 to 34, with 35 to 49-year-olds being the second-biggest consumer group, drinking almost 30% of beer sold. Beer is still the most popular alcoholic drink in Canada, with 35.5% of the market share, but its popularity has been decreasing since 2010.

Beer consumption by age group

Beer consumption in Canada has been declining in recent years, with Gen Z Canadians leading the shift in preferences away from beer towards spirits, ready-to-drink (RTD) options, and non-alcoholic beverages. In 2023, Canadians continued to decrease their consumption of alcoholic beverages, reaching the lowest level in the observed time period.

In 2019, it was estimated that 39% of all beer sold in Canada was consumed by those aged between 18 and 34, making them the largest consumer group. The second biggest consumer group was those aged between 35 and 49, drinking almost 30% of all beer sold in Canada.

In 2020, the average Canadian of legal drinking age consumed 69.3 litres of beer, a 2.7% decrease from 2019. Per capita consumption varied across provinces, with Newfoundland and Labrador having the highest consumption at 90.6 litres, followed by Quebec and New Brunswick at 77.4 litres, and British Columbia with the lowest consumption at 64.8 litres.

While beer remains the most popular alcoholic drink in Canada, its market share has been decreasing. In 2019/2020, beer sales fell 0.6% to $9.3 billion, with per capita sales of 72.1 litres of beer per person over the legal drinking age. This was the lowest per capita volume ever recorded by Statistics Canada since it began tracking alcohol sales in 1950.

The shift in preferences away from beer is also reflected in the sales data for different types of alcoholic beverages. In 2019/2020, beer lost 1.6% of its market share to wine, spirits, and ciders and coolers. Wine sales grew by 5.2% to $7.8 billion, while spirits sales rose 6.0% to $6.0 billion. Ciders and coolers saw the fastest growth for the eighth year in a row, increasing by 17.2% to $1.3 billion.

The COVID-19 pandemic also impacted drinking habits in Canada, with alcohol sales surging in March 2020 due to stockpiling. However, the overall trend of declining beer consumption continued, with beer sales declining by 1.4% in 2020.

Beer consumption by province

Canada's beer and brewing industry is largely domestic, with 85% of beer consumed in Canada brewed in Canada. In 2020, Canadians of legal drinking age consumed an average of 69.3 litres of beer, a 2.7% decrease from 2019.

In 2020, the COVID-19 pandemic caused a shift in beer packaging preferences, with canned beer sales increasing by 12.3% nationally, while bottle sales declined by 15.1% and keg sales fell by 54.8% due to restaurant and bar closures.

In 2020, Newfoundland and Labrador had the highest per capita consumption at 90.6 litres of beer. This was followed by Quebec and New Brunswick, which were tied at 77.4 litres. British Columbia had the lowest per capita consumption of all provinces at 64.8 litres.

In the fiscal year ending March 31, 2023, Yukon had the highest per capita sales volume of beer, reaching approximately 92.7 litres. In contrast, Manitoba had the lowest sales volume of the period, with 56.2 litres per capita.

New Brunswick has the highest number of breweries per 100,000 drinking-age adults at 9.4, followed by Nova Scotia at 8.7 and Prince Edward Island at 7.8. Manitoba has the lowest rate, with 1.9 breweries per 100,000 drinking-age adults.

Beer sales by packaging

In 2020, canned beer accounted for 74% of total beer sales in Canada, while bottled beer made up 21% of sales and keg beer sales contributed to the remaining 5%. This shift from bottles and kegs to cans was accelerated by the COVID-19 pandemic, which caused bar and restaurant closures across the country.

In 2018, 61.5% of all beer sold in Canada was canned beer, while bottled beer and draught beer made up 30.6% and 7.9% of sales, respectively. The popularity of canned beer is also reflected in the overall preference for domestic beer over international beer, as 85% of beer consumed in Canada in 2018 was domestically brewed.

The shift towards canned beer is also evident in the production practices of craft brewers, who are increasingly packaging their products in aluminium cans. This trend is driven by the environmental benefits, reduced costs, and convenience of cans compared to bottles.

While canned beer dominates the market, there is still a demand for bottled and kegged beer, particularly in the restaurant and bar sectors. Additionally, craft beer sales are increasing, and the microbrewery industry is experiencing rapid growth, indicating a diverse market that caters to varying consumer preferences.

Beer's economic impact

Beer is Canada's most popular alcoholic beverage, with Canadians of legal drinking age consuming an average of 69.3 litres of beer in 2020, a 2.7% decrease from 2019. In 2016, Canadians bought around 23 million hectolitres of beer in stores, which equates to 214 bottles per person of legal drinking age. This popularity has a significant economic impact on the country.

The beer economy in Canada was responsible for $13.8 billion in spending in 2016, contributing $13.6 billion to Canada's GDP in 2020. The industry supports 149,000 jobs, generating a labour income of $5.3 billion. The domestic nature of the industry is a large contributor to its economic impact, with 85% of beer consumed in Canada being brewed in the country.

The industry has experienced growth in recent years, with the number of licensed breweries in Canada increasing year-on-year, reaching 995 in 2018, a 260% increase since 2013. This growth is expected to continue, with revenue generated from the industry projected to increase from $6.43 billion in 2018 to $6.77 billion in 2023.

The beer economy also has an impact on the supply chain, as it often originates in a province and then reaches across the country. The industry has a positive environmental impact, with a 57.3% decrease in greenhouse gas emissions and a 48.1% reduction in energy use in brewing facilities since 1990.

Beer's environmental impact

The average Canadian of legal drinking age consumed 69.3 litres of beer in 2020, a 2.7% decrease from 2019. While beer consumption may have decreased, the environmental impact of beer production is still a concern.

The brewing industry is one of the largest industrial users of water. In addition, energy consumption, wastewater, solid waste, and emissions remain major environmental challenges. The environmental impact of beer production can be categorized into three areas: upstream, operations, and downstream.

Upstream

Upstream refers to the production and transportation of raw materials used in beer and its packaging. Glass manufacturing, barley production, and malting make up the majority of the upstream environmental impact. Glass bottles require a significant amount of energy to produce, however, when made with recycled content, they can reduce energy usage. Traditional methods of growing barley, which include repeated tilling and pesticide application, also have a heavy environmental footprint. By implementing low or no-till methods and using organic malts, the carbon footprint of barley production can be reduced.

Operations

Operations refer to the resource consumption directly tied to the process of making beer in the brewery. While production at the brewery is the smallest part of the environmental impact, it is still important to adopt sustainable practices. By focusing on energy and water consumption and conservation, breweries can reduce their environmental impact. For example, using renewable energy sources can decrease carbon consumption and emissions.

Downstream

Downstream encompasses the resources used in the transportation and refrigeration of beer after it leaves the brewery. Beer transportation over long distances carries a significant environmental cost due to its weight. In addition, refrigeration at retail accounts for more than 25% of the total carbon footprint of beer. Maintaining cool, consistent temperatures is essential for beer quality and shelf life but creates an environmental challenge for brewers.

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