“Canadians are making a shift in their purchasing habits, with a noticeable decrease in alcohol sales and a significant increase in recreational cannabis spending, according to a recent report from Statistics Canada.
Rise in Recreational Cannabis Sales:
The report reveals that recreational cannabis sales by provincial authorities experienced a 15.8 percent year-over-year increase. Canadians collectively spent $4.7 billion in the 2022 to 2023 fiscal year, marking a $0.6 billion surge from the previous year. This trend indicates that Canadians are directing more of their spending towards cannabis products, with the average legal-aged Canadian now spending $150 annually on these items.
Decline in Alcohol Sales:
Conversely, alcohol sales have seen a decline for the second consecutive year. Statistics Canada notes a 1.1 percent decrease in alcohol sales based on volume, equating to 3,106 million liters in 2022/2023. The data indicates that on average, legal-aged Canadians are consuming 9.2 standard alcoholic beverages per week, down from 9.5 in the previous year.
Understanding the Shift:
Beer sales are at an all-time low, with an average of 3.6 standard bottles consumed per legal-aged individual in 2022/2023. Despite this decline, beer revenue saw a 4.1 percent increase, breaking a four-year trend. Overall, alcohol sales revenue increased by 2.8 percent between the 2021/2022 and 2022/2023 fiscal years, attributed to inflation-driven price hikes.
Implications for Wine and Other Beverages:
Wine sales have also decreased, with Canadians purchasing the equivalent of 2.2 glasses per week, marking a 3.0 percent decline from the previous year. Ciders and coolers were the only beverage category to show an increase in sales by volume, albeit much smaller than historical averages.
Cannabis Comes Out on Top:
Inhaled cannabis extracts saw a significant surge in sales, accounting for the majority (67.6%) of the overall $0.6 billion increase in cannabis sales. Dried cannabis remained the most popular form, though sales declined slightly in 2022/2023. The report highlights Newfoundland and Labrador’s remarkable growth in inhaled extracts sales, attributed to the lifting of a ban in 2022.
Final Thoughts:
The report sheds light on the changing consumer landscape in Canada, showcasing a shift towards cannabis consumption over traditional alcohol purchases. While alcohol sales continue to bring in higher revenues overall, the rapid growth in cannabis sales indicates a shifting trend that may have broader implications for the industry.
As Canadians navigate their choices between alcohol and cannabis, it will be interesting to see how these trends continue to evolve and impact the market in the future.”
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