Intel and Insights: Surprising facts about our largest export market
According to respected United States beverage analyst Danny Brager, the number of wine drinkers in the US has increased over the past decade.
The market is shaped by regional preferences, strict import regulations and a rising demand for diverse wine styles. While New Zealand wines – particularly Sauvignon Blanc, Pinot Gris and Pinot Noir – have gained traction, continued effort is required to navigate this highly competitive landscape.
Wine constitutes roughly one-third of alcohol consumption in Canada, split between red and white varieties. The market is highly regional, with provinces such as Ontario, Quebec, Alberta and British Columbia being the primary wine consumers. These provinces also support strong domestic wine industries, particularly in Ontario’s Niagara region and British Columbia’s Okanagan Valley. Canadian consumers embrace international wines – especially from Italy, France, the United States and Australia – and New Zealand has made notable progress, with its Sauvignon Blanc particularly appreciated for its unique and refreshing flavour profile.
New Zealand's Market Performance
New Zealand’s wine exports to Canada have grown steadily, now accounting for 6% of total wine exports. In the 12 months to June 2024, New Zealand wine sales in Canada grew by 2.6% in value and 1.5% in volume, outperforming the overall market, which declined by -0.9% in value and -3.3% in volume. Canadian wine sales reached CAD $8.45 billion, representing 35% of total liquor sales, followed by spirits at 32%, beer at 22%, and ready-to-drink beverages at 11%.
Ontario accounted for 41% of New Zealand’s wine sales, with a value increase of 3.6%. Quebec, with 19% market share, saw a rise of 5.3%, while British Columbia and Alberta accounted for 17% and 12.3% respectively, with Alberta experiencing a -3.5% decline in value. Sauvignon Blanc makes up more than 85% of New Zealand’s exports to Canada, and grew by 4% in value and 2.9% in volume, surpassing the category growth rate. Pinot Gris, the second-largest white varietal from New Zealand, posted 5.8% value growth, making it 65% larger in sales than Pinot Noir. Despite gaining traction in recent years, New Zealand Pinot Noir experienced a slight decline of -0.9% in value and -2.8% in volume in the past 12 months.
Distribution and Regulatory Challenges
One of the main challenges for New Zealand wine producers is navigating Canada’s provincial liquor control system. Each province has its own set of regulations governing alcohol sales. Ontario’s Liquor Control Board (LCBO) and Quebec’s Société des alcools du Québec (SAQ) are two of the largest alcohol buyers globally, making them critical partners for New Zealand producers. However, securing shelf space in these liquor systems can be difficult, due to competition from domestic and established international brands. Strategic partnerships with importers and distributors are essential to overcoming these hurdles and enhancing visibility in key provinces.
Growth of NOLO Wines
The rising interest in no and low-alcohol wines in Canada presents an emerging opportunity. As Canadian consumers become more health-conscious, demand for low-alcohol wines is growing. New Zealand’s focus on sustainability and innovation positions it well to capitalise on this trend by offering flavourful low-alcohol alternatives.
New Zealand wine has carved a niche in Canada, led by Sauvignon Blanc and growing interest in Chardonnay, Pinot Gris and Pinot Noir. However, competition remains strong from both domestic and established international players. To sustain growth, New Zealand needs to continues to focus on innovation, such as NOLO wines, and strengthen ties with key distributors and liquor boards.
Richard Lee is Intel and Insights Specialist at New Zealand Winegrowers and Andrea Backstrom is NZW Canadian Market Manager. NZW will host LCBO’s Senior Director of New World Wines, Marie Cundari, and Vice President Merchandising, Abhay Garg, in February 2025, coinciding with Pinot Noir New Zealand 2025. For more information on that please email Andrea at This email address is being protected from spambots. You need JavaScript enabled to view it..
