As per MRFR analysis, the Canada Craft Beer Market Size was estimated at 9.19 (USD Billion) in 2023.
The Canada Craft Beer Market Industry is expected to grow from 10(USD Billion) in 2024 to 40 (USD Billion) by 2035. The Canada Craft Beer Market CAGR (growth rate) is expected to be around 13.431% during the forecast period (2025 - 2035).
Key Canada Craft Beer Market Trends Highlighted
The Canada Craft Beer Market is observing new patterns as consumers focus more on distinctive and handcrafted products. The desire for authenticity and originality among beer drinkers is propelling interest in craft beer. Canadian consumers actively search for small scale producers or microbreweries that incorporate local ingredients and creative brewing techniques into their beers. This is an indication of strong support for local economies and producers, contributing to increased community participation and shared identity among craft beer lovers. The wellness trend is a key driver in this market: health-conscious consumers seeking craft options perceive these as better for health compared to mainstream beers.
Perceptions of beer as low quality mass produced beverages has shifted value towards quality. This has increased demand for organic and gluten free beer alternatives. Access to craft beer in supermarkets and convenience stores as well as the expanding trend of online alcohol sales offers consumers a wide range of craft options. There are tremendous opportunities to be seized in the Canada Craft Beer Market, particularly for breweries targeting niche segments like eco-friendly consumers. Embracing eco-friendly brewing processes and sustainable packaging materials can appeal to this consumer base.
Advancements in flavor profiles and new styles present opportunities for breweries to entice daring consumers with new experiences. Recent trends indicate an increase in collaborations between craft breweries and other businesses, including coffee, chocolate, and even local farms. This trend complements the craft beer experience while fostering local collaborations. Altogether, the Canada Craft Beer Market is constantly shifting, driven by the need for community, creativity, and eco-friendliness.
Canada Craft Beer Market Drivers
Growing Demand for Craft Beer
The Canada Craft Beer Market Industry is witnessing a substantial increase in consumer demand as beer enthusiasts are shifting towards craft options that offer unique flavors and local authenticity. According to the Canadian Craft Brewers Association, 96% of surveyed individuals indicated they prefer to purchase locally brewed craft beer over mass-produced options. This trend reflects an increasing consumer preference for products with unique characteristics and supporting local economies.
The Association also reported that approximately 2,800 craft breweries operated in Canada as of the end of 2022, indicating a significant expansion from just around 300 a decade earlier. This spike in the number of craft breweries not only caters to rising consumer preferences but also reinforces economic activity across diverse regions in Canada. As more consumers become educated and adventurous in their beer choices, the Canada Craft Beer Market Industry is poised for continued growth.
Increase in Microbreweries
The rise in the number of microbreweries across Canada is acting as a key driver for the Canada Craft Beer Market Industry. The Statistics Canada reported an increase of nearly 35% in microbreweries from 2019 to 2022. This growth has led to a more diverse range of craft beers being available in the market. Notably, the Government of Canada has been promoting small breweries through supportive regulatory frameworks and tax incentives, which further aids in the establishment and sustainability of newer entrants into the craft beer segment.
With approximately 41% of Canadians reporting that they frequently purchase craft beer, this expansion of microbreweries not only satisfies the growing demand for varied offerings but also enhances competition in the market, thereby driving growth forward.
Growing Interest in Health Consciousness
As consumers become increasingly health-conscious, the Canada Craft Beer Market Industry is adapting to meet these changing preferences. A survey conducted by the Canadian Institute for Health Information indicated that over 30% of Canadians are seeking healthier beverage options today than they did a few years ago. This sentiment has led to the rise of low-calorie and gluten-free craft beer alternatives, which cater to health-conscious consumers.
Moreover, as traditional brewing methods are being reconsidered, many craft breweries are emphasizing natural ingredients and organic brewing processes to align with the mindful consumption trend. Organizations like the Brewers Association of Canada have noted this shift and are working with breweries to promote these healthier craft beer options. As more consumers prioritize health in their lifestyle choices, the impact on the Canada Craft Beer Market Industry is expected to be considerable.
Canada Craft Beer Market Segment Insights
Craft Beer Market Type Insights
The Canada Craft Beer Market is experiencing substantial growth, with a variety of types that contribute to its overall dynamics, particularly Ale, Lager, and Stouts. Each of these types holds unique characteristics that appeal to different consumer preferences and local tastes. In Canada, the Ale segment emerges as a significant player due to its diverse options, including IPAs and pale ales, which resonate well with the craft beer aficionados who seek bold flavors and distinctive aromas. This type is notably popular in provinces like British Columbia and Ontario, which boast a thriving craft beer scene fueled by local breweries that innovate traditional recipes to cater to evolving consumer demands.
Meanwhile, Lager is another integral component of the Canada Craft Beer Market, appreciated for its crispness and refreshing nature. This type often attracts a broader audience who prefer lighter and more sessionable options, particularly during the warmer months. Canadian brewers have adeptly embraced lagers by incorporating local ingredients and modern brewing techniques, which enhance their appeal while maintaining quality. The proliferation of craft lagers has contributed to the increasing popularity of beer festivals across Canada, showcasing the success and growth of local craft brands.
Stouts, characterized by their dark color, rich flavors, and creamy textures, are also a vital part of the craft beer landscape in Canada. This type is particularly embraced during colder seasons and is known for its various sub-styles including oatmeal stouts and imperial stouts. Brewers in Canada have successfully highlighted stouts' versatility by introducing exciting variations, which have gained traction among consumers seeking indulgent flavors. The growing interest in barrel-aged stouts has further enhanced the segment's allure, creating opportunities for brewers to innovate and captivate the craft beer enthusiast audience.
The interplay between these types not only reflects consumer preferences but also illustrates the evolving craft beer culture within Canada. The market is witnessing a trend towards creativity and experimentation, with many breweries investing in unique flavor infusions and limited-edition releases across these types. As the Canada Craft Beer Market continues to expand, the dynamics among Ale, Lager, and Stouts will play a pivotal role in shaping industry trends and engaging with a diverse consumer base. Factors such as the increasing emphasis on local sourcing and sustainability are also influencing the production processes of these types, fostering a stronger connection between brewers and consumers, and enhancing performances in both local and wider markets. Overall, the segmentation of the Canada Craft Beer Market into types highlights the sector's dynamism, offering consumers a rich tapestry of choices while driving growth and innovation across the industry.
Craft Beer Market Ingredients Insights
The Canada Craft Beer Market, within the Ingredients segment, showcases a robust framework that is essential for the overall crafting process. Ingredients such as malt, yeast, enzymes, and hops serve as the foundational elements that not only define the quality and taste of craft beers but also significantly influence consumer preferences and market trends. Malt, being a primary source of fermentable sugars, has a notable impact on flavor profiles and color, thus capturing the attention of both brewers and consumers. Yeast plays a critical role in fermentation, contributing to the aroma and flavor nuances, making it pivotal for various craft beer styles.
Enzymes are becoming increasingly important as they aid in the efficiency of the brewing process and can enhance the brewing yield, offering opportunities for innovation in product development. Hops, with their aromatic properties, are vital for creating distinctive and appealing flavors, often driving consumer demand for certain craft beer styles. The progress in this segment reflects an ongoing evolution in the Canada Craft Beer Market, adapting to the dynamic tastes of consumers and paving the way for new market growth opportunities.
Craft Beer Market Distribution channel Insights
The Canada Craft Beer Market reflects a robust growth trajectory, particularly within the Distribution channel, which plays a crucial role in meeting consumer demand. This market is notably segmented into two primary avenues: Store and Non-store channels. Store channels, which include retail outlets, have become significant as consumers often prefer the experience of browsing and selecting craft beers in person. This approach not only enhances customer engagement but also allows for direct interaction with brands. On the other hand, Non-store channels, such as online shopping and home delivery services, have gained traction, especially in response to recent shifts in consumer behavior influenced by the convenience of at-home consumption.
The rise of e-commerce in Canada has enabled craft breweries to reach a broader audience efficiently. Factors such as the increasing popularity of craft beer among younger demographics and a growing culture of local sourcing further bolster these distribution methods. The overall trends indicate a competitive landscape, where traditional and innovative channels coexist, each catering to diverse customer preferences in the Canada Craft Beer Market.
Canada Craft Beer Market Key Players and Competitive Insights
The Canada Craft Beer Market is a vibrant and rapidly evolving sector within the overarching alcoholic beverage industry, characterized by its emphasis on quality, flavor, and traditional brewing methods. Craft breweries across the country showcase a wide range of unique beer styles and flavors, which have helped to cultivate a varied consumer base. The competitive landscape is shaped by a growing demand for artisanal products, an increasing consumer interest in locally sourced and sustainable options, and intensified competition among established and emerging players. This dynamic environment creates opportunities and challenges, with breweries focusing on branding, innovation, and distribution strategies to gain market share in the diverse regional markets of Canada.
Alexander Keith's Brewery has established a significant presence in the Canada Craft Beer Market through its long-standing heritage and commitment to quality. This brewery is known for producing a range of traditional beers that resonate well with Canadian consumers. One of the key strengths of Alexander Keith's Brewery lies in its strong brand recognition and loyal customer base that appreciates its authentic craft brewing techniques. The brewery's ability to leverage its historical roots while embracing modern brewing practices allows it to cater to both traditional and contemporary tastes. Its strategic marketing initiatives and community engagement further bolster its presence in the market, enabling it to connect deeply with consumers and maintain a competitive edge.
Big Rock Brewery is another pivotal player in the Canada Craft Beer Market, celebrated for its commitment to producing high-quality, flavorful beers that reflect the uniqueness of Canadian brewing culture. The brewery's range of products includes a variety of ales, lagers, and seasonal brew offerings, which cater to different consumer preferences. Big Rock Brewery's strengths lie in its innovative approach to brewing and willingness to experiment with new flavors and styles, which keeps its product lineup fresh and appealing. The brewery also enjoys a respectable market presence thanks to a robust distribution network across Canada. Additionally, Big Rock Brewery has engaged in strategic mergers and acquisitions to enhance its market position, allowing it to broaden its reach and diversify its offerings. Through its dedication to quality and innovation, Big Rock Brewery continues to strengthen its standing in the competitive landscape of Canada’s craft beer market.
Key Companies in the Canada Craft Beer Market Include:
Canada Craft Beer Market Industry Developments
The Canada Craft Beer Market has seen significant developments recently, with notable growth driven by a surge in consumer interest in local and unique brews. Companies like Alexander Keith's Brewery and Steam Whistle Brewery are expanding their offerings, while Big Rock Brewery has reported strong sales growth due in part to the rising trend of craft beer consumption.
In terms of acquisitions, there have been no recent publicly known mergers specifically involving the listed companies; however, various craft breweries, including Quidi Vidi Brewery and Phillips Brewing and Malting Company, continue to innovate with new flavors and sustainable practices, reflecting a broader trend within the market. Between 2021 and 2023, the Canadian craft beer sector has experienced growth with total sales increasing, driven by the younger demographic's palates shifting towards craft options.
The government of Canada is also supporting this sector through various grants aimed at promoting local businesses, stimulating economic growth in the beverage industry. As consumers increasingly seek out smaller, independent brands, companies like Ninkasi Brewing Company and Lagunitas Brewing Company are well-positioned to capitalize on these trends, indicating a vibrant future for the Canada Craft Beer Market.
Craft Beer Market Segmentation Insights
| Report Attribute/Metric | Details |
| Market Size 2023 | 9.19(USD Billion) |
| Market Size 2024 | 10.0(USD Billion) |
| Market Size 2035 | 40.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 13.431% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Alexander Keith's Brewery, Big Rock Brewery, Sierra Nevada Brewing Co., Quidi Vidi Brewery, Brouwerij West, Banded Peak Brewing, Brewery and the Beast, Amsterdam Brewery, Ninkasi Brewing Company, Steam Whistle Brewery, Phillips Brewing and Malting Company, Half Pints Brewing Company, Lagunitas Brewing Company, Granville Island Brewing, Moosehead Breweries |
| Segments Covered | Type, Ingredients, Distribution channel |
| Key Market Opportunities | Growing demand for local breweries, Innovative flavors and styles, Expansion into online sales, Sustainable and eco-friendly practices, Increased festival and event participation |
| Key Market Dynamics | increasing craft beer consumption, strong local brewery competition, evolving consumer preferences, better distribution channels, emphasis on quality and uniqueness |
| Countries Covered | Canada |
Frequently Asked Questions (FAQ) :
The Canada Craft Beer Market was valued at 10.0 USD Billion in 2024.
By 2035, the Canada Craft Beer Market is projected to reach a value of 40.0 USD Billion.
The expected CAGR for the Canada Craft Beer Market from 2025 to 2035 is 13.431%.
In 2035, the Lager segment is projected to dominate the market with a valuation of 16.0 USD Billion.
The Ale segment was valued at 3.5 USD Billion in the Canada Craft Beer Market in 2024.
Key players in the Canada Craft Beer Market include Alexander Keith's Brewery, Big Rock Brewery, and Sierra Nevada Brewing Co., among others.
The Stouts segment is expected to be valued at 10.0 USD Billion in 2035.
The primary growth drivers include the increasing consumer preference for craft beer and innovation in brewing techniques.
New entrants can leverage the growing demand for unique flavors and local craft beers to gain market share.
Emerging trends such as sustainable brewing practices and experimentation with flavors are significantly shaping the market dynamics.
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Research Analyst Harshita post graduate mba in business administration from welingkar institute, mumbai and 5 years of experience in the field of product market research. as a research analyst, i have cross-domain experience in packaging, and industrial automation & equipment. i am currently looking after the research process of packaging, logistics & transportation, and industrial automation & equipment at market research future reports. my responsibilities at the organization involve handling syndicate and custom reports as well as responding to client inquiries, and organize, co-ordinate with a group of 5 to 6 persons to manage all workflows.
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