Canadians turned to legal weed in record numbers last year. Retail sales of recreational cannabis jumped to $5.5 billion in the fiscal year ending March 31, 2025. At the same time, alcohol sales dropped even as prices rose. This shift marks a big change in habits and hits government wallets hard.
Retailers sold $5.5 billion in legal recreational cannabis products from April 2024 to March 31, 2025. That marks a 6.1 percent rise from the year before. The growth slowed a bit from past years but still beat alcohol hands down.
Average prices fell 1.1 percent over the period. People spent $167 per legal-age adult on average. Yukon led with $384 per person. Quebec trailed at $105 due to strict rules on items like vapes and edibles.
Inhaled extracts drove the surge. They grew 12.8 percent and took 31.1 percent of the market.
Solid edibles bucked the trend. Sales dipped 2.2 percent.
- Inhaled extracts: Fastest grower at +12.8 percent.
- Dried flower: Steady but slower gains.
- Other formats: Mixed results amid price drops.
This boom shows cannabis gaining ground seven years after legalization.
Alcohol Faces Sharpest Drop in Decades
Booze sales tell a different story. Total value hit $25.8 billion, down 1.6 percent year over year. Prices climbed 1.6 percent, yet buyers pulled back.
Volume plunged 3.0 percent to 2,898 million litres. That is the fourth straight year of decline. Adults of legal age drank the equivalent of 8.0 standard drinks per week. Down from 8.7 last year and 9.7 a decade ago.
Beer led the fall. Volume dropped 3.8 percent to 1,876 million litres. That makes nine years in a row. Value fell 1.6 percent to $9.1 billion.
Wine sales value slipped 2.2 percent to $7.7 billion. Imports tumbled for the first time since 1992-1993.
Spirits value decreased 3.2 percent to $6.7 billion. Volume down 4.4 percent.
Ciders and coolers bucked the trend. They rose 4.8 percent to $2.4 billion.
Here is a quick look at alcohol by type:
| Beverage Type | Sales Value | Change | Volume (millions L) | Change |
|---|---|---|---|---|
| Beer | $9.1B | -1.6% | 1,876 | -3.8% |
| Wine | $7.7B | -2.2% | 460 | Down |
| Spirits | $6.7B | -3.2% | 177 | -4.4% |
| Ciders/Coolers | $2.4B | +4.8% | 385 | +2.2% |
Domestic products gained share at 60.6 percent of sales.
Consumers Shift Toward Healthier Choices
Why the switch? Health trends play a big role. More folks cut back on booze for wellness reasons. Cannabis offers a milder buzz without the hangover.
Economic pinch hurts too. Higher living costs make people pick cheaper options. Weed prices dropped while alcohol rose.
Younger buyers lead the change. They drink less and try cannabis more. Per capita booze use keeps falling across provinces.
Ontario saw big drops in imported wine. Quebec felt it in volumes. Yukon bucks alcohol trends with high cannabis spend.
Canada’s cannabis sales growth outpaced alcohol’s decline for the fourth year running. Experts point to legalization as a key driver. Since 2018, legal weed cut into booze turf.
Strikes and rules affected sales in spots like British Columbia. Still, overall patterns hold firm.
Governments See Mixed Revenue Results
Ottawa and provinces earned $15.5 billion total from booze and weed. Down 2.0 percent.
Alcohol brought $13.1 billion. That is a 4.2 percent drop. The biggest annual plunge since tracking started in 2004-2005.
Cannabis netted $2.5 billion. Up 11.5 percent. Governments take $0.51 per alcohol dollar and $0.45 per cannabis dollar.
Provinces vary. Northwest Territories tops alcohol spend per person at $1,558. Newfoundland close at $1,125.
For cannabis, Alberta hits $250 per legal adult. Ontario at $168.
These shifts force budget tweaks. Less booze cash means tighter plans. Weed gains help offset some loss.
Future looks steady for cannabis. More stores and products fuel hope. Alcohol faces ongoing pressure from sober curious crowds.
Canadians now face clear choices in recreation. Cannabis rises as booze fades. This trend reshapes nights out, wallets, and public health.
