Industry Size and Growth Trends : The Canadian whiskey market is doing really well. In 2024, it was worth about $2.33 billion, and it’s expected to grow steadily over the next decade, reaching around $3.46 billion by 2034.
What’s driving this growth?
- More people are choosing craft and premium whiskey over mass-produced options.
- There’s a growing interest in small-batch spirits made with local ingredients and unique flavors.
- Consumers are looking for quality and character—they want whiskey that tells a story and tastes special.
British Columbia is a great place to be part of this trend. It has clean water, locally grown grains, and strong support for craft alcohol businesses, making it an ideal spot for a new whiskey brand.
Competitive Landscape
There are no active whiskey or spirits distilleries in Terrace. Sherwood Mountain Brewhouse is the only craft alcohol producer, and it focuses solely on beer. This gives Sandhu Heritage Whiskey a clear competitive edge as the first local distillery in the region.
Barriers to Entry
- Regulatory complexity: Licensing, excise duties, and compliance with provincial and federal laws.
- Distribution challenges: Gaining shelf space in liquor stores dominated by large brands.
- Interprovincial trade barriers: Small distilleries face restrictions selling across provinces, limiting market reach. [cbc.ca], [globalnews.ca]
- Capital intensity: Equipment, aging barrels, and facility costs require significant upfront investment.
Suppliers and Distributors in British Columbia
Key Suppliers
- Local grain producers in Northern BC and Alberta supply barley, rye, and wheat.
- Packaging suppliers: Glass bottle manufacturers and label printers are concentrated in the Lower Mainland and Ontario.
Distributors
- BC Liquor Distribution Branch (BCLDB): The primary wholesale distributor for liquor in BC.
- Revelry Imports and Southern Glazer’s Wine & Spirits: Offer brand-building and distribution services for craft spirits. [revelryimports.com], [ca.souther…lazers.com]
- Pacific Rim Distributors: Specialize in craft alcohol distribution across Western Canada and international market
Regulatory and Economic Factors
Regulations
- Whiskey must be aged at least 3 years in Canada to be labeled as Canadian whiskey.
- Producers must obtain a spirits license under the Excise Act, 2001, and comply with excise duty requirements. [canada.ca]
- The 9.09% rule allows blending with up to 9.09% of other spirits while still labeling the product as Canadian whisky. [expertmark…search.com]
Economic Factors
- Rising input costs (grains, glass, energy) and inflation are pressuring margins.
- Tariff exemptions under USMCA give Canadian whiskey a competitive edge in the U.S. market. [ohbev.com]
- Consumer trends favor authenticity, sustainability, and health-conscious drinking (e.g., lower ABV options).
Competitive Analysis
| Competitor | Type | Strengths | Weaknesses |
| Sherwood Mountain Brewhouse | Craft Brewery | – Strong local brand – Community engagement – Established customer base | – No spirits or whiskey production – Limited product diversity |
| BCLIQUOR Terrace | Government Liquor Store | – Wide product selection – High customer traffic – Trusted retailer | – Shelf space dominated by large brands – Less focus on local/craft brands |
| Skeena Liquor Store | Private Liquor Store | – Carries local and unique products – Flexible sourcing | – Smaller scale than BCLIQUOR – Limited marketing reach |
| Terrace Inn Liquor Store | Private Liquor Store | – Local presence – Potential for partnerships | – Less known for craft or premium selections |
4Ps of Competitors Analysis
| Competitor | Product | Price | Place | Promotion |
| Sherwood Mountain Brewhouse | Craft beers (Kolsch, IPA, Stout, etc.) | Mid-range, competitive for local market | On-site taproom, local bars, and liquor stores in Terrace | Strong local branding, community events, social media presence |
| BCLIQUOR Terrace | Wide range of domestic and international spirits, including whiskey | Varies (low to premium) | Government-run store with high foot traffic in central Terrace | Provincial advertising, in-store promotions, seasonal flyers |
| Skeena Liquor Store | Local and imported wines, spirits, and craft products | Mid-range to premium | Independent store in Terrace, flexible sourcing | Local advertising, word-of-mouth, occasional in-store tastings |
| Terrace Inn Liquor Store | General selection of beer, wine, and spirits | Budget to mid-range | Located within a hotel, convenient for travelers | Limited promotion, relies on location and convenience |
Forecast for Future Growth
The Canadian whiskey market is expected to continue growing steadily, driven by:
- Premiumization: Consumers are choosing quality over quantity
- Craft innovation: Unique aging techniques and Indigenous ingredients are gaining traction
- Global recognition: Canadian whiskey is increasingly respected internationally
Forecasts suggest the market will reach USD 3.46 billion by 2034, with craft distilleries playing a key role in shaping consumer preferences.
References
Expert Market Research. (2024). Canada whiskey market size, share, price, growth 2025–2034. https://www.expertmarketresearch.com/reports/canada-whiskey-market
Research and Markets. (2024). Canada whiskey market report and forecast 2025–2034. https://www.researchandmarkets.com/reports/6076908/canada-whiskey-market-report-forecast
EssFeed. (2024). Top 10 Canadian whisky import companies. https://essfeed.com/top-10-canadian-whisky-import-companies-in-canada/
Distillery University. (2025). The future of craft distilling: Trends shaping the industry in 2025. https://distilleryuniversity.com/the-future-of-craft-distilling-trends-shaping-the-industry-in-2025/