CANADA: Ageing population to boost wine over other categories
An ageing population and a move towards premiumisation in Canada will continue to see the country's wine industry outpace other categories, a new report claims.
The BMO Economics' report, released yesterday (30 October), says that the country's wine industry is seeing average volume growth of 3.1% per year. "The Canadian wine industry has undergone a remarkable expansion over the past two decades," said economist Aaron Goertzen of BMO Capital Markets.
"While the climate in Canada may prevent the sector from becoming an international powerhouse, its reputation on the international stage has grown, and Canadians are increasingly reaching for a glass of Pinot Noir instead of Pilsner.”
The industry will continue to benefit from Canada's ageing population, the report says, while the adoption of “bolder” brands and marketing tactics will reach younger consumers.
BMO added: “Sophisticated consumers are willing to buy more premium wines, providing an opportunity to produce higher-value products.”
The report also flagged an “increasing number of wine bars in Canada”.
Goertzen also pointed to an opportunity in icewine. "There is likely scope for Canadian wineries to increase their exports of premium-priced products such as icewine, for which economies of scale are not as important," he said.
Last year Canadian adults bought an average of 22 bottles of wine, up from 13 bottles in 1995, the report noted. One-third of wine consumed in Canada is produced by domestic wineries.
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