Cannabis Sales Climb as Alcohol Purchases Slip, Statistics Canada Reports

OTTAWA – New federal data from Statistics Canada reveal that recreational Cannabis sales in Canada rose while alcohol declined in the fiscal year, ending March 31, 2025. Parallel trends appear in U.S. frequency-of-use surveys, where daily or near-daily Cannabis consumption has overtaken that of alcohol for the first time on record. The shifts point to measurable changes in how some adults in both countries allocate their spending and time between the two categories.

The federal government’s central statistical agency, tasked with producing data on Canada’s population, resources, economy, society, and culture reports recreational Cannabis sales in Canada rose 6.1% to C$5.5 billion in 2025, while alcohol sales fell 1.6% to C$25.8 billion. The figures mark the continuation of a clear divergence. Cannabis revenue to governments climbed 11.5% to C$2.5 billion. Alcohol revenue dropped 4.2% to C$13.1 billion – the steepest annual decline since Statistics Canada began tracking the series in 2004-05.

Alcohol volume sales slid 3% to 2.9 billion liters, the fourth straight yearly drop. On average, Canadians of legal drinking age bought the equivalent of 8 standard drinks per week, down from 8.7 the year before and 9.7 a decade earlier. Cannabis sales translated to about C$167 per person of legal age. Prices moved in opposite directions. Recreational Cannabis prices edged down 1.1% over the 12 months, while alcohol prices rose 1.6%. Inhaled extracts led Cannabis growth, gaining 12.8% and lifting their market share to 31.1%. Solid edibles were the only Cannabis category to post a decline.

A separate U.S. analysis offers a parallel picture on the frequency side. Carnegie Mellon University researcher Jonathan Caulkins, examining four decades of National Survey on Drug Use and Health data, found that in 2022 the number of Americans reporting daily or near-daily Cannabis use reached 17.7 million, surpassing the 14.7 million who reported the same level of alcohol consumption for the first time on record. In 1992, daily or near-daily alcohol users outnumbered Cannabis users by roughly ten to one.

The latest analysis from researchers at the University at Buffalo suggests that adults turning to Cannabis-infused beverages often scale back their alcohol habits, including sharp drops in binge drinking. The findings, drawn from a survey of nearly 500 Cannabis users, point to these drinks as a potential tool for those aiming to dial down booze without going cold turkey.

Taken together, the Canadian sales data and U.S. frequency data point to a measurable change in how a portion of consumers in both countries allocate time and spending between the two substances. Alcohol remains far larger in absolute terms [total Canadian alcohol sales still exceed Cannabis by more than four to one] yet the growth trajectories have reversed.