Canada Wine Market

Based on the category, the Canada wine market has been bifurcated into alcoholic, and non-alcoholic. The alcoholic segment accounted for the largest market share of 96.83% in 2023 and is likely to register a CAGR of 2.21% during the projected period. Whereas the non-alcoholic segment will likely register a CAGR of 3.04% during the projected period. The alcoholic is poised to be valued at USD 15149.15 million by 2032 over its existing market value in 2023.

The demand for alcoholic wine in Canada has experienced outstanding growth over the past decade, driven by the shifting preferences of consumers and augmented inclination toward premium and diverse wine offerings. A key factor contributing to this demand is the rising awareness and appreciation of wine culture, supported by wine education programs and events such as wine tastings and festivals. Consumers across Canada have shown a surging inclination towards higher-quality wines, with a marked preference for varietals from renowned wine-producing regions such as France, Italy, and California.

Based on the product type, the Canada wine market has been bifurcated into red wine, white wine, rose wine, sparkling wine, and others. The red wine segment accounted for the largest market share of 52.79% in 2023 and is likely to register a CAGR of 2.24% during the projected period. Whereas the white wine segment will likely register a largest CAGR of 2.53% during the projected period. The major growth factor driving the growth of wines among consumers is the increasing interest in high-quality and premium wines.

In addition, consumers across Canada are becoming more concerned, and often looking for red wines with distinct and unique flavors, superior quality, and a connection with specific regions, both internationally, and domestically. This dynamic shift towards premiumization is expanding the growth and sales of the wine market across Canada. The growing consumers’ focus on a healthy lifestyle option is also considered a major factor.

Based on the consumer group, the Canada wine market has been bifurcated into Gen Z, Gen X, Millennial, and Baby Boomers. The millennial segment accounted for the largest market share of 45.98% in 2023 and is likely to register a CAGR of 2.28% during the projected period. Whereas the Gen X segment will likely register a CAGR of 3.17% during the projected period.

The Gen Z is poised to be valued at USD 4368.95 million by 2032 over its existing market value in 2023.  The demand for wine among Gen Z consumers in Canada is a dynamic and evolving trend, influenced by their unique preferences and lifestyle choices. Unlike previous generations, Gen Z (born between 1997 and 2012) tends to favor experiences and social engagements over traditional consumption patterns, which significantly impacts their wine consumption behavior. Primarily, Gen Z places a high value on sustainability and ethical production.

Based on the price range, the Canada wine market has been bifurcated into economy and premium. The economy segment accounted for the largest market share of 66.32% in 2023 and is likely to register a CAGR of 1.89% during the projected period. Whereas the premium segment will likely register a CAGR of 2.91% during the projected period. This category encompasses wines that are affordable yet maintain a level of quality that appeals to a wide audience. Within this price range, the consumers of Canada demand wines that offer good value without compromising on taste.

These wines often come from both domestic wineries in Canada and along with international producers. Furthermore, in terms of variety, the economic price range covers a wider selection of grape varietals and styles. For white wines, popular options include crisp and refreshing varieties such as Chardonnay, Sauvignon Blanc, and Pinot Grigio. Red wines in this category often feature Merlot, Cabernet Sauvignon, and blends that offer a balance of fruitiness and structure. Rosé wines, known for their versatility and light profiles, are also well-represented.

Based on the distribution channel, the Canada wine market has been bifurcated into Off-Premises and On-Premises. The Off-Premises segment accounted for the largest market share of 85.43% in 2023 and is likely to register a CAGR of 2.13% during the projected period. Whereas the On-Premises segment will likely register a CAGR of 2.85% during the projected period. The off-premises distribution channel accounted for a market value of USD 10893.13 million in 2023 and is anticipated to grow with a CAGR of 2.13% by 2032.

The wine market of Canada is primarily regulated provincially, leading to variations in distribution practices and market dynamics. The provinces such as Ontario and British Columbia, are considered as the key players of the wine industry of Canada, off-premises sales occur through a combination of government-operated liquor stores, private wine shops, and increasingly, online retail platforms. The supermarkets & hypermarkets distribution channel accounted for a market value of USD 2466.90 million in 2023 and is anticipated to grow with a CAGR of 3.20% by 2032.