After experiencing years of remarkable growth, the craft beer industry is now facing a slowdown in Canada. Beer sales are on the decline, and the number of breweries in the country is starting to decrease. This shift is attributed to a combination of cost pressures and evolving consumer preferences and social behaviors.
Ben Leon, co-founder and CEO of Dandy Brewing in Calgary, acknowledged the need for a correction in the industry that had seen explosive growth. While the hype surrounding craft beer in the 2010s may have diminished, some businesses are adapting by offering diverse beverages and redefining the brewery experience.
In 2014, Leon established his brewery in a small warehouse in Calgary, capitalizing on the growing demand for craft beer among millennials in North America. The regulatory changes in Alberta further supported the expansion of microbreweries, leading to a surge in new brewery openings in the region.
The trend of rapid brewery openings was not unique to Alberta but was observed nationwide in the 2010s. Craft breweries were seen as economic stimulants and community revitalizers, attracting funding and enthusiasm for the industry’s growth.
Despite the industry’s golden age extending into the early stages of the COVID-19 pandemic, the number of breweries in Canada peaked and has since started to contract. The growth rate that characterized the previous decade has slowed significantly, indicating a maturing market where quality and innovation are paramount.
Beer Canada reported a stabilization and slight decline in the number of breweries in 2024, with a consistent decrease in beer sales over the past five years. This downward trend has affected both craft and mainstream brewers, aligning with changing consumer behaviors such as reduced alcohol consumption among younger and new Canadian demographics.
As affordability concerns and shifting preferences impact the industry, breweries like Evil Corporation Brewing in Calgary have faced challenges, leading to closures. The evolving market landscape has prompted breweries to diversify their offerings, focusing on food quality, event hosting, and expanding their beverage portfolios to include non-alcoholic options.
Despite the industry’s challenges, some breweries are thriving by adapting to the changing market conditions. By offering a wider range of products and experiences, successful breweries are staying relevant and engaging with consumers in new ways. For businesses like Dandy Brewing, the craft beer party continues with a more subdued yet innovative approach, catering to evolving consumer tastes and preferences.