Executive Summary

Jul 2019
PROSPECTS
Overall beer remains stagnant

Beer consumption has been stagnating in Canada in the last decade, although it did fare slightly better in 2018 than in the previous two years, thanks to more favourable weather in the summer for large parts of Canada and widening of the distribution of beer products in provinces like Ontario and British Columbia. Accounting for the lion’s share of total beer sales, lager, particularly mid-priced domestic lager, has been hardest hit as consumers diverged towards either premium products and craft beer or value, economy offerings in the last 6-7 years.

Craft movement remains strong in beer

Aligning with changing demographics and consumer preferences for unique offerings and interesting experience and receiving support from major retailers such as LCBO and SAQ, craft beer has gradually risen to significance in terms of share in total beer sales, channel distribution and shelf presence in the last 10 years. It is showing no signs of slowing down anytime soon.

Uncertainty mounts in trade and legislation

2018 and 2019 were marked as turbulent years for various industries, including alcoholic drinks, as legislation changes and trade friction pose mounting uncertainty for industry participants. Major changes in cannabis legislation finally came into effect in October 2018, and more are expected in the ensuing years, potentially negatively impacting alcoholic drinks sales.

COMPETITIVE LANDSCAPE
Molson Canada and Labatt Brewing continue to lead

The beer category in Canada is relatively mature and consolidated. Nearly every four out of five litres of beer are produced by Labatt Brewing or Molson Canada in Canada.

Craft brewers enjoy sustained growth, but competition is intensifying

Following Labatt Brewing and Molson Canada are a slew of smaller players, including Sleeman Breweries, regional players, and a rapidly growing number of craft brewers. Barriers to entry are relatively low in beer, and over 2016-2018 there was a 30% increase in the number of breweries in Canada, and most of the increase was from craft brewers.

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Beer in Canada

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Overview

Discover the latest market trends and uncover sources of future market growth for the Beer industry in Canada with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Beer industry in Canada, our research will save you time and money while empowering you to make informed, profitable decisions.

The Beer in Canada market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market volume shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Beer in Canada?
  • What are the major brands in Canada?
  • How has premium lager performed in the wake of the global recession, has it lost out to economy lager as consumers traded down?
  • What are the most popular flavours within non-alcoholic beer?
  • What are the market opportunities for ‘healthier’ beers like low calorie and/or low abv beers?
  • Has the implementation of a stricter drink driving law benefited sales of low/non-alcohol beer?
  • Has the recession benefited domestic lager over imported lager?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Alcoholic Drinks market research database.

Beer in Canada - Category analysis

HEADLINES

PROSPECTS

Overall beer remains stagnant
Craft movement remains strong in beer
Uncertainty mounts in trade and legislation

COMPETITIVE LANDSCAPE

Molson Canada and Labatt Brewing continue to lead
Craft brewers enjoy sustained growth, but competition is intensifying

CATEGORY BACKGROUND

Lager price band methodology
Summary 1 Lager by Price Band 2018
Table 1 Number of Breweries 2013-2018

CATEGORY DATA

Table 2 Sales of Beer by Category: Total Volume 2013-2018
Table 3 Sales of Beer by Category: Total Value 2013-2018
Table 4 Sales of Beer by Category: % Total Volume Growth 2013-2018
Table 5 Sales of Beer by Category: % Total Value Growth 2013-2018
Table 6 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018
Table 7 Sales of Beer by Off-trade vs On-trade: Value 2013-2018
Table 8 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 9 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018
Table 10 GBO Company Shares of Beer: % Total Volume 2014-2018
Table 11 NBO Company Shares of Beer: % Total Volume 2014-2018
Table 12 LBN Brand Shares of Beer: % Total Volume 2015-2018
Table 13 Forecast Sales of Beer by Category: Total Volume 2018-2023
Table 14 Forecast Sales of Beer by Category: Total Value 2018-2023
Table 15 Forecast Sales of Beer by Category: % Total Volume Growth 2018-2023
Table 16 Forecast Sales of Beer by Category: % Total Value Growth 2018-2023

Alcoholic Drinks in Canada - Industry Overview

EXECUTIVE SUMMARY

Growth areas emerge thanks to craft movement and premiumisation trend
Non-alcoholic alternatives gain traction across the board
Major players focus on premium and core brands while craft products attract growing attention
Distribution widens for alcoholic drinks as regulations evolve
Mounting uncertainty presents both challenges and opportunities

MARKET BACKGROUND

Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
Table 17 Number of On-trade Establishments by Type 2013-2018

TAXATION AND DUTY LEVIES

Summary 2 Taxation and Duty Levies on Alcoholic Drinks 2018

OPERATING ENVIRONMENT

Contraband/parallel trade
Duty free
Cross-border/private imports

KEY NEW PRODUCT LAUNCHES

Outlook

MARKET DATA

Table 18 Sales of Tobacco by Category: Volume 2013-2018
Table 19 Sales of Tobacco by Category: Value 2013-2018
Table 20 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 21 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 22 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 23 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 24 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 25 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 3 Research Sources