Canadians are drinking less but consuming more cannabis, a trend that’s shifting government revenues while raising concerns about public health. In the 2023/2024 fiscal year, federal and provincial governments earned $15.7 billion from alcohol and cannabis sales. But while cannabis revenues surged by 12.6 per cent to $2.2 billion, alcohol earnings slipped to $13.5 billion.
Canadians are drinking less than ever. The volume of alcohol sold fell 3.8 per cent—the largest decline since records began in 1949. On average, legal-age drinkers bought 8.7 standard drinks per week, down from 9.2 the year before.
Beer sales dropped 4.5 per cent to 1.95 billion litres, continuing an eight-year decline. Once the dominant drink in Canada, beer now accounts for just 35.1 per cent of total alcohol sales, down from nearly half (49.4 per cent) two decades ago. Wine sales fell 4.8 per cent, while spirits dropped 3.9 per cent. The only category to grow was ciders and coolers, up 6.9 per cent.
While alcohol sales declined, legal cannabis sales hit $5.2 billion, an 11.6 per cent increase from the previous year. This growth came despite a 2.8 per cent drop in cannabis prices, showing demand is still rising. The fastest-growing product was inhaled extracts, up 31.4 per cent. Over the past three years, these products have eaten into the market share of dried cannabis, which now makes up just 61.4 per cent of sales, down from 71 per cent in 2021/2022.
Governments continue to profit from the expanding cannabis market, despite growing concerns over health impacts, addiction risks, and impaired driving.
Cannabis sales vary widely by region. Yukon recorded the highest per capita spending at $356 per person of legal age, while Quebec had the lowest at $96. Quebec’s stricter rules on vapes and edibles have likely kept sales lower.
Even as alcohol sales declined, more Canadians opted for local products. Canadian-made beer accounted for 88 per cent of beer sales, while domestic ciders and coolers made up 85 per cent of their category. Spirits (46.1 per cent) and wine (28.8 per cent) had lower shares of homegrown options.
The shift in consumer habits highlights a troubling reality: while Canadians are moving away from alcohol, many are turning to cannabis instead. Governments continue to collect billions in revenue from substances that contribute to long-term health issues. The steady rise in cannabis use raises serious concerns about public health, particularly as high-potency products gain popularity.
Personally, I hate smelling cannabis on the street, in public areas, and even in my own home when a neighbor decides to have fun. It’s frustrating to see people using it openly and then getting behind the wheel. Yes, it’s legal, but that doesn’t mean I want to promote it.
Save your livers and lungs before it’s too late!