Canada's craft beer industry faces inflation, tariffs and falling consumption

Canada's craft brewers report rising costs from inflation, U.S. aluminum tariffs and higher taxes while many customers are drinking less; some breweries are adapting with non-alcoholic options and selective expansion even as the national brewery count dipped in 2025.

Canada's craft brewing sector is navigating higher operating costs and changing drinking habits. Brewers and industry groups say inflation, U.S. tariffs on aluminum and liquor taxes have raised production costs. At the same time, reports and brewers note that a large share of Canadians are drinking less alcohol than before. Some small breweries have introduced non-alcoholic products, restructured or closed, while others report modest regional gains. Key points: - A Restaurants Canada report says 41 per cent of Canadians reduced their alcohol consumption in the past year, citing health, lifestyle and cost reasons. - Overall beer sales fell about 20 per cent between 2019 and 2025, and the total number of Canadian breweries fell from 1,145 to 1,112 in 2025. - Industry sources say inflation, U.S. aluminum tariffs and rising liquor taxes have increased costs for brewers and consumers. - Regional variations exist: Saskatchewan reported a 3.3 per cent rise in craft beer sales Jan–Nov, and Alberta small brewers showed year‑over‑year gains, while some individual breweries have restructured or added non‑alcoholic lines. Summary: The industry is experiencing a mix of pressures on costs and demand while showing varied regional performance. Some breweries are adapting with new products or local expansion plans, while the broader trajectory remains uncertain.