In the first half of 2024, Canada’s wine import market has displayed a noteworthy shift, reflecting changing consumer preferences and market dynamics. While the volume of wine imports has declined, the value has increased, highlighting a growing trend towards quality over quantity in wine consumption.
Canada experienced a 4.5% decline in the volume of wine imports, totaling 177.7 million liters. Despite this drop, the overall value of these imports grew by 2.9%, reaching CAD 1.295 billion. This increase in value, coupled with a 7.7% rise in the average price per liter to CAD 7.29, indicates that Canadian consumers are willing to pay more for higher-quality wines. This trend marks a significant improvement from 2023, when the market faced a 10.2% drop in volume and an 8.9% decline in value. The first half of 2024 suggests a partial recovery, though the data reveals complex shifts within different wine categories.
The growth in value was notably driven by specific wine categories. Bag-in-box wines saw a remarkable 27.2% increase in volume, standing out in an otherwise stagnant market. Bottled wines remained relatively stable with a slight decrease of 0.5% in volume but saw an increase of 14.4% in value. In contrast, sparkling wines and bulk wines experienced declines of 7.1% and 14.6% in volume, respectively. Nevertheless, both bag-in-box and bottled wines performed well in terms of value, with increases of 14.4% and 4.7%, respectively, which helped offset the declines in bulk and sparkling wine segments.
Bottled wines continue to dominate the Canadian market, representing 65.4% of the total import volume and an impressive 86% of the total value, with 116.2 million liters valued at CAD 1.115 billion. The bulk wine category, which has been losing ground, fell to 48 million liters. In contrast, sparkling wine, despite a lower volume of 8.3 million liters, generated nearly triple the revenue of bulk wine, reflecting its premium pricing and ongoing consumer appeal.
Canada imports wine from 58 countries, with notable shifts in supplier rankings. Italy, traditionally a leading supplier, saw a 7.7% decrease in volume to 31.9 million liters but overtook Australia as the leading supplier by volume. Australia experienced the most significant decline among major suppliers, with a 20.4% drop, bringing its total to 31.5 million liters. France retained its third-place position, with a slight decrease of 1.2% to just under 29 million liters. The United States bucked the overall trend with a 4.1% increase, reaching 25.6 million liters. Chile and Spain made notable gains, with Chile leading with a 20% increase to 15 million liters and Spain growing by 3.8% to 12.5 million liters.
In terms of value, France continues to dominate, generating nearly CAD 340 million, a 2.8% increase. Italy follows with CAD 273.8 million, marking a 2.1% rise, widening its lead over the United States, which saw a 2.8% decrease to CAD 260.4 million. Spain secured its fourth-place position with a robust 12.6% increase to CAD 90.6 million, while Australia’s value dropped by 4.6% to CAD 75 million. Chile demonstrated exceptional growth in value, with a 28.3% increase, underscoring its rising prominence in the Canadian market.
France and the United States command the highest average prices among the top suppliers, with CAD 11.77 and CAD 10.17 per liter, respectively. These higher price points significantly contribute to their strong positions in terms of value. Spanish wines, although slightly below the market average, saw a substantial price increase of 8.5% to CAD 7.25 per liter, narrowing the gap with the overall market average and outperforming other key suppliers such as Australia, Chile, Portugal, and South Africa.
South Africa faced a sharp 20.2% decline in volume but managed to maintain its revenue levels, suggesting a shift towards higher-priced offerings in its export portfolio. Portugal and Argentina also saw value growth despite a drop in volume, indicating the effectiveness of their strategies in focusing on premium segments. Conversely, the United States and New Zealand experienced decreases in average prices, which could impact their future positioning in the Canadian market.
Canada’s wine import market is evolving, with consumers showing a refined palate and a preference for quality over quantity. This shift is reshaping the competitive landscape, prompting both established and emerging suppliers to adjust their strategies. As the market continues to mature, the success of individual countries and wine categories will depend on their ability to align with Canadian consumers’ evolving preferences, particularly in the premium segments where growth is most pronounced. The remainder of 2024 will likely see further adjustments as suppliers adapt to these changing dynamics, with potential new leaders emerging in both volume and value.
