In 2024, Canada’s economic freedom ranking fell to 16th globally, despite strong results in Financial Freedom and Judicial Effectiveness. The Business Confidence Index declined by 11.7% over 2024, with further weakening expected due to global economic uncertainty. While trade and investment freedom showed modest gains, and digitalisation advanced under the federal Digital Ambition strategy, labour skills shortages and lower productivity point to areas requiring improvement.

Total alcoholic drinks packaging unit volumes declined by 2% in Canada in 2024, driven by a complex interplay of economic, social and behavioural factors. According to Statistics Canada, alcohol sales by volume fell by 3.8%, marking the steepest drop since tracking began in 1949. This reduction was most pronounced in the off-trade channel (liquor stores, supermarkets, convenience stores), where single-serve and multipack formats are most prevalent. The decline in packaging volumes in this channe

In 2025, luxury goods in Canada demonstrated robust retail current value growth of 5%, continuing the steady expansion that began in 2021. However, this growth was tempered by macroeconomic challenges, including a rising cost of living that constrained discretionary spending. Some middle-income consumers exhibited caution amid economic uncertainty, adopting more conservative purchasing behaviours. Despite these headwinds, premium and luxury cars, which represents the largest category by value sa

In 2025, fine wines/champagne and spirits in Canada demonstrated 1% growth, reaching CAD3.1 billion. This growth was driven by the ongoing premiumisation trend in alcoholic drinks, and evolving consumer preferences, with these products appealing as an affordable luxury during times of high living costs. Luxury spirits exhibited the most robust growth, with 3% growth in sales, outpacing fine wines. Consumers increasingly demonstrated a willingness to pay a premium for high-quality, exclusive beve

In 2025, designer apparel and footwear in Canada experienced a moderate 2% increase in current value terms, reaching CAD4.2 billion. This growth rate was more subdued compared to previous years, but continued expansion was supported by gradual improvements in economic conditions, which bolstered consumer spending, particularly among affluent buyers, who continued to seek out contemporary luxury pieces to refresh their wardrobes. Affluent Canadian consumers drove spending on designer apparel and

In 2025, experiential luxury in Canada demonstrated steady retail current value growth of 6%, reaching CAD2.4 billion. This expansion was primarily driven by sustained demand for luxury hotel stays and high-end dining experiences. Indeed, luxury hotels continued to be the dominant category within experiential luxury, benefiting from robust domestic and international travel, with overall arrivals increasing by 4% and domestic trips by 5% in 2025. Wealthier consumers exhibited a pronounced prefere

In 2025, premium and luxury cars in Canada experienced 8% growth, reaching CAD17.9 billion. This growth was underpinned by the category's notable resilience and adaptability, primarily driven by the evolving consumer preferences for sustainability and cutting-edge technology. A significant trend emerged with the increasing adoption of electrification, as more luxury electric vehicles (EVs) and plug-in hybrid electric vehicles entered the market. This shift was supported by the Canadian federal g

Total beauty and personal care packaging unit volumes decreased marginally in Canada in 2024. This decline can be attributed to a combination of factors: greater adoption of sustainable and reusable packaging, the enforcement of stricter environmental regulations, and a marked shift in consumer preferences towards simpler and more functional formats.

In 2024, total home care packaging unit volumes in Canada declined by 2%. Due to rising financial pressures, Canadian consumers became more price sensitive, increasingly opting for bulk purchases or value-sized products. As a result, the number of individual packages sold decreased, contributing to a reduction in overall packaging unit volumes. Premium-priced branded home care products, particularly those characterised by strong fragrances or synthetic ingredients, underperformed due to shifting

In 2024, Canada's real GDP growth slowed to 1%, falling below the developed economies' average of 1.8%, with GDP per capita also underperforming. The budget deficit widened to 1.3% of GDP, while public debt rose to 110.7%, surpassing the developed economies’ average of 108.6%. Although inflation eased to 2.4%, it remained above the central bank’s 2% target, prompting policymakers to maintain elevated interest rates to ensure price stability and anchor expectations.

In 2024, Canada's average gross income ranked 17th among developed countries, with a 2% real increase in per capita disposable income. Despite this, the tax burden was higher than the average, and income inequality remained pronounced, with the top 10% of households earning 27.3% of total disposable income. Over 2024-2029, per capita disposable income is projected to grow by 6.7%, driven by tax cuts and wage supplements, but social progress is expected to stagnate.

Retail value sales of airlines rose in 2025 in Canada, supported in part by strategic route diversification and capacity increases, as airlines responded to shifting travel patterns. Amid ongoing political tensions between Canada and the United States, fewer Canadians are opting to travel south of the border. To counterbalance this decline, major Canadian carriers have focused on expanding international and domestic offerings.

Retail value sales of lodging (destination) is set to rise in Canada in 2025, supported by favourable economic conditions and strong tourism performance. With GDP growth forecast at approximately 2.4% and inflation stabilising around 2.0%, hotel performance metrics have shown notable improvement.

Travel in Canada is set to record strong growth in 2025, surpassing pre-pandemic levels. While political tensions and an ongoing trade dispute between the United States and Canada have dampened cross-border travel, other segments of the market are driving growth and expansion. Domestic tourism has emerged as a key growth driver, with a significant demand in bookings nationwide. This trend is influenced by several factors, including a weakened Canadian dollar in the first two quarters of the year

Inbound arrivals to Canada increased in 2025, despite ongoing political tensions affecting traditional travel flows. Since President Trump returned to office, Canada–U.S. relations have become strained, resulting in a decline in cross-border travel. Fewer Canadians are choosing to visit the United States, and the number of American tourists coming to Canada has also decreased. This trend has been reinforced by a combination of factors, including U.S. political policies, stricter border controls,

Retail value sales of bookings in Canada is set to increase in 2025, with both leisure and business travel continuing to perform strongly. However, leisure travel remains the dominant segment, accounting for over 80% of total booking sales. Canadian travellers are increasingly motivated by nature, global exploration, and culturally rich experiences, both domestically and internationally. Canada’s renowned biodiversity and stunning natural landscapes continue to attract strong interest. According

Although economic freedom is solid in Canada, its relations with the US have worsened markedly and the political landscape is more unstable. Economic momentum is weakening and exports will be negatively affected by tariffs, but inflation is below target. Strong immigration is making the social landscape more diverse, but the fertility rate is low and housing is increasingly unaffordable. Solid internet use supports e-commerce, but technology specialists are in short supply.

Sports nutrition in Canada experienced robust growth amid rising demand for both sports protein and sports non-protein products. Growth was supported by an increasing population and rising health awareness which has led to higher participation in sports and fitness activities and increasing demand for sports nutrition products to support performance and recovery. The category offers a range of products catering to consumers of all fitness levels, from recreational athletes to “weekend warriors”

Analgesics in Canada witnessed a rebound in current value sales over 2025, as demand patterns stabilised following the pandemic. Growth was evident in both systemic analgesics and topical analgesics/anaesthetic. Older consumers are seeking convenient and safe relief from the aches and pains typically associated with ageing, as well as more chronic pain conditions. Demand was also boosted by the rising immigrant population in Canada, which has boosted the potential consumer base for analgesics.

Consumer health experienced robust value growth in 2025 with a notable uptick in performance compared to the previous year. Vitamins and dietary supplements continued to deliver category-leading growth while sports nutrition also saw solid growth as consumers made health and fitness a priority. The healthy ageing trend is a driving force in multiple categories, with consumers choosing to address gut health and seek support for stress and mood. Many consumers faced economic uncertainty in 2025, d

Herbal/traditional sales in Canada increased in 2025, led by topical analgesics which includes CBDs and herbal/traditional dietary supplements. Canada’s ageing population is seeking out remedies for the typical aches and pains associated with the ageing process. Cannabidiol (CBD) topical creams are a growth area as consumers, especially chronic pain sufferers, look for effective remedies for joint pain, stiffness and inflammation. Multiple licensed companies retail CBD topical analgesics in C

Eye care in Canada posted robust value growth in 2025, underpinned by steady demand for solutions to eye issues such as dry eye. Euromonitor’s Voice of the Consumer: Health and Nutrition consumer survey for Canada reported 36.4% of respondents were moderately or extremely concerned with dry eye, compared to 41% in 2024, but remaining above the 33.9% reported in 2023. Canadians also expressed concern over eye issues, with 44.6% of respondents reporting they were extremely or moderately concerned

Cough, cold and allergy (hay fever) remedies in Canada witnessed stagnant value growth in 2025 after declining in 2024. Sales of these products are highly dependent on the severity of the cold/flu season and allergy season which are subject to volatility depending on the severity of the season. Combination products is the largest category in volume and value terms, followed by cough remedies. Overall, the weak cold and flu season led to declines in both these categories in 2025. Moreover, demand

Digestive remedies in Canada witnessed steady value growth over 2025, continuing the positive momentum seen over the review period. Rising awareness of the importance of gut health has bolstered consumer interest in functional foods and supplements containing probiotics, prebiotics and fibre. Canada’s ageing population typically encounters more digestive health issues with sedentary urban lifestyles also leading to a higher incidence of such ailments. The growing awareness of health since the CO