PRINCE EDWARD COUNTY, Ont. – Canadian wineries could be adding billions more to this country’s GDP in the years ahead if the barriers they are facing were to be addressed, new analysis finds.
At a time where Prime Minister Mark Carney is pushing to strengthen domestic industries, there’s significant untapped growth potential in the wine sector, according to a new Deloitte report commissioned by Wine Growers Canada.
CTV News was granted exclusive first access to the analysis and is in Prince Edward County – Ontario’s fastest-growing wine region – on Tuesday to talk to winemakers about the findings.
Canadian wines currently represent 28.8 per cent of domestic wine sales, contributing $10.1 billion annually to Canada’s GDP. But if the industry was able to achieve a majority market share of 51 per cent over the next 15 years, made-in-Canada wines could contribute $13.7 billion a year.
Getting there, the report outlines, would require lingering interprovincial trade barriers to be dismantled, the representation and brand recognition of Canadian wines across the country to be strengthened, and for lawmakers to implement policy and tax changes to level the playing field with international competitors.
As of 2025, there are more than 31,000 grape-bearing acres across Canada, and more than 600 wineries, sustaining approximately 99,300 full-time jobs. The wine industry in this country is also highly integrated with a range of other key economic sectors, from agriculture and manufacturing to tourism and retail.
Room to expand ‘Buy Canadian’
The sector has a footprint across the country, from British Columbia’s Okanagan to Nova Scotia’s Annapolis Valley.
Although, buying full-bodied red from Penticton, B.C.’s Painted Rock, or a crisp Tidal Bay from Benjamin Bridge, is often much harder to do from one or two provinces over, than it is to grab a generic Spanish Rioja off a local liquor store shelf.
That said, the report found that the “multiplier effect” for Canadian wines are six times greater than that of imported wines. Wine Growers Canada estimates that for every bottle of 100 per cent made-in-Canada wine purchased domestically, approximately $89.99 is generated for the economy, whereas a bottle of imported wine generates just $15.73.
While the “Buy Canadian” push – sparked by U.S. President Donald Trump’s trade war – and provinces’ retaliatory decision to pull American alcohol off the shelves has proven to pay off big time for many domestic producers, there’s still room to squeeze more juice out of the market.
For example: Of the 166 million litres of wine sold in Quebec in 2023-24, only two million litres were wines made from 100 per cent Quebec-grown grapes. The report argues that the time is ripe for marketing wines as a perfect pick for Canadians looking to increase how much they’re shopping local.
Interprovincial barriers remain
Despite the flurry of cross-provincial pledges to break down interprovincial trade barriers, many still persist and are hindering the wine sector’s ability to expand their presence across the country, the report argues.
While there is the federal Importation of Intoxicating Liquors Act, the interprovincial alcohol trade is largely governed provincially, in a way that to-date has resulted in a patchwork of licensing, compliance, and credential requirements.
According to Wine Growers Canada, its members have long identified this quilt of rules as a challenge to domestic growth as it limits consumer access and reduces revenue potential for producers.
What efforts to lift barriers looked like as of March, according to the report, showed an uneven map. The provinces with the lowest level of restrictions were B.C., Manitoba and Nova Scotia, as they allow direct-to-consumer (DTC) shipping of wine from other provinces and unlimited wine imports for personal consumption.
Among the parts of the country with moderate limits are Alberta and Ontario, where DTC shipping is not yet fully in effect. Meanwhile, the territories and Newfoundland and Labrador were deemed to have the highest restrictions, with legislated limits on personal imports and no DTC shipping.
Last month, Ottawa said 10 provinces and the Yukon were on track to allow consumers to buy Canadian alcohol for personal consumption directly by May 2026, but how that policy will be implemented remains up to each jurisdiction.
Policy, tax changes needed
To further stretch the legs of the sector’s potential, the report also calls for the development of a dedicated federal wine strategy, separate from the existing national tourism plan.
A sector-specific strategy could improve long-term planning and investment certainty, and coupled with tax and regulatory changes that level the playing field with international competitors, it would improve the sustainability of the sector, the report argues.
As an example of the incongruity when it comes to the tax burden winemakers in this country face, a mid-sized Canadian winery – producing 500,000 litres a year – pays approximately C$372,500 in federal excise taxes.
A U.S. winery of comparable output pays an estimated US$19,700, or C$27,000, and that discrepancy has knock-on effects in pricing, margins and the ability to reinvest, the report states.
Policy wise, winemakers and winery owners point to uneven market conditions from one province to another, resulting in lingering uncertainty – even if trade barriers are brought down.
For example, one asked: Would an Ontario-based Vinters Quality Alliance, or VQA, be treated equally to a B.C. VQA, face the same regulations, processing and auditing? The smaller the producer, the more burdensome needing to comply with multijurisdictional requirements can become.
“A more open domestic market, fair competition, and co-ordinated policy alignment can unlock the full economic potential of Canadian wine, delivering jobs, investment and long-term rural prosperity,” said Wine Growers Canada president and CEO Dan Paszkowski in a statement.
