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MARKET OUTLOOK

The market for alcoholic spirits in Canada is anticipated to grow with 4.49% of CAGR (by revenue) and 1.71% of CAGR (by volume) during the forecast years between 2021 and 2026.

Due to the strong cocktail culture in Canada, there is a growing preference for high-quality products, owing to which, a number of categories saw growth in 2019. For instance, tequila (and mezcal), Irish whiskey, and single malt Scotch whisky saw healthy growth. In particular, mezcal attracted attention, with a rapidly expanding product range emerging at liquor board stores. Besides, a number of other categories, like Canadian whisky, liqueurs, vodka, and gin, observed a noticeable improvement in their growth rates.

With the implementation of the lockdown in 2020 due to Coronavirus spread, the off-trade channel witnessed growth. This growth can be attributed to consumers, especially those with higher incomes, stockpiling spirits, due to concerns regarding shortages. The off-trade channel is expected to continue to see growth, with a slightly higher rise anticipated than originally projected. Single malt Scotch whisky is expected to see strong growth, thanks to its strong off-trade performance. Also, in the forecasted period, the overall spirits category will see increased sales via grocery retailers, and the manufacturers who tap into this channel are likely to benefit.

COMPETITIVE OUTLOOK

Some of the companies operating in the alcoholic spirits market include Suntory Holdings Ltd, William Grant & Sons Ltd, Diageo Plc, Campari Milano SpA Davide, and Bacardi & Co Ltd.