In 2023, Canada imported approximately 3.1 million bottles of Cava, representing a 4.57% decrease from the previous year. This placed Canada as the 11th largest importer of Cava worldwide.
However, in 2020, certain producers reported a significant increase in exports to Canada, with some experiencing a fourfold rise. In 2021, Canada saw a 28.28% increase in Cava imports, indicating a growing appreciation for this Spanish sparkling wine.
The swings in Cava exports to Canada may be attributed to several factors that impact demand, trade dynamics, and consumer preferences.
Possible reasons for fluctuation:
- Fluctuations in the exchange rate between the Euro and the Canadian Dollar can influence the price competitiveness of imported Cava.
- During challenging economic periods, consumers may cut back on discretionary spending, including wine purchases, or shift to more affordable alternatives.
- The Pandemic Effects (2020-2021) spurred increased alcohol consumption at home as people sought ways to celebrate or unwind during lockdowns, driving a spike in demand for affordable sparkling wines like Cava.
- As restrictions eased, consumers may have continued exploring Cava as a cost-effective option, leading to a notable increase in imports.
- By 2023, normalizing consumption patterns and a possible shift in consumer focus toward on-premise consumption (restaurants and bars) might have led to a decrease in demand for at-home wine purchases.
Trends and Competition
Canadian consumers have a growing interest in sparkling wines, but competition from Prosecco, Champagne, and local sparkling wines may have influenced demand for Cava. Efforts to market and educate Canadian consumers about Cava’s unique qualities might not have been consistent, leading to fluctuations in demand. Sparkling wine sales are often seasonal, peaking during holidays or celebratory periods. Year-to-year changes in marketing campaigns and promotions can amplify or dampen sales.
Trade Policies and Supply Chain
Changes in trade policies, tariffs, or regulations between Spain and Canada could impact import volumes. Disruptions in global logistics, such as shipping delays or increased freight costs, might have affected the availability and pricing of Cava.
Local Law 11 Impact
While Local Law 11 is more relevant to construction, misalignments in inventory choices driven by retailers’ perceptions of shifting trends in Canadian wine preferences might have indirectly affected the choice.
The fluctuation reflects a combination of global and local factors that impact both the supply and demand sides of the market. To stabilize or grow exports, Cava producers might need to increase consumer education, strengthen marketing campaigns, and address logistical or economic challenges.
