Beer Prices Soar in Canada: What’s Driving the Increase?

Beer has always been a staple beverage enjoyed by many in social settings or as a relaxing drink at home. However, in recent years, the prices of beer have been increasing steadily. It’s easy to point fingers and blame the government for taxing it too heavily, but the reality is that beer prices are bubbling up due to a variety of factors beyond just taxes. In this article, we’ll explore the reasons why the price of beer is on the rise and what this means for beer drinkers across the country.


The rising cost of beer in Canada has accelerated in recent years, according to monthly data from the Consumer Price Index by Statistics Canada. While the planned tax increase on alcohol has received criticism from large brewers and restaurant associations, it’s just one factor causing prices to froth up. Neil Reid, a beer researcher and geography and planning professor at the University of Toledo, explains that the cost of components such as cans, bottles, malted barley, and hops have risen. Some regions have also experienced shortages of aluminum for canning or carbon dioxide, driving up prices or making the product more scarce. Large and small brewers have tried to hold prices steady during the COVID-19 pandemic but have had to adjust pricing upward due to the high cost of used materials. Craft breweries and beer makers ask the government to consider adjusting the excise tax system, which increases for craft brewers producing over 2,000 hectoliters. Craft brewers accept paying taxes; they want a more gradual increase or the removal of the cliffs.


In conclusion, it seems that beer prices in Canada are experiencing a steady rise, but it’s not just due to taxes. Economic factors such as increased demand and supply chain disruptions during the pandemic have also played a significant role. While consumers may be feeling the pinch, it’s important to remember that the brewing industry is facing its own financial challenges. Ultimately, the future of beer prices remains uncertain, but it’s clear that this beloved beverage will continue to be an integral part of Canadian culture. So, next time you cheers with a cold one, raise a glass to the complexity and resilience of our brewing industry!