A new Deloitte white paper, The Canadian Wine Supercluster: An Economic Engine, highlights that Canada’s wine sector already contributes $10.1 billion to GDP and supports nearly 100,000 jobs, many in rural communities where long-term economic drivers are limited. It is one of the country’s most integrated value-added industries, linking agriculture, manufacturing, tourism, hospitality, and retail, and it is primed for growth.

Yet despite this scale, Canadian wine remains underrepresented in its own domestic market.

Today, Canadian wines account for just 29 per cent of domestic sales. Deloitte’s analysis shows that increasing domestic market share to 51 per cent over the next 10 to 15 years, by expanding access to high quality Canadian wines across the country, could grow the sector’s economic contribution to $13.7 billion annually while driving new investment, job creation, and rural economic development.

This is not a question of quality or demand. Canadian wines are globally competitive and increasingly recognized for excellence. The constraint is structural.

Producers face fragmented interprovincial market access, higher effective tax burdens than many competitors, and limited long term policy certainty in a capital-intensive agricultural manufacturing sector.

A clear example is federal excise duty. A mid-sized Canadian winery producing 500,000 litres annually pays approximately $372,500 in excise duty, compared to about $27,000 for a similarly sized producer located just across the Niagara River or across the border in Washington State. That differential directly affects reinvestment decisions, expansion capacity, and long-term competitiveness, even where producers operate in similar growing conditions.

At the same time, Canada’s domestic market remains fragmented. Momentum is building toward reducing interprovincial barriers and expanding direct to consumer wine delivery. Done right, this would better connect Canadian producers with Canadian consumers and create a more functional national market.

This aligns directly with the federal government’s focus on boosting economic activity now to build the bridge for tomorrow. The wine sector is well positioned to contribute to that objective, but unlocking its full potential requires a coordinated approach.

The opportunity extends beyond market access.

Canada can accelerate growth in its wine sector through practical, low and no cost measures that align with existing policy priorities. These include strengthening regional economic development, expanding wine tourism, supporting new and emerging grape growing regions, and enabling more value-added production within Canada.

Wine is not just an agricultural product. It is a value chain that anchors local manufacturing, drives tourism, supports hospitality, and builds regional brands. In leading wine producing regions, this integrated approach is what translates production into sustained economic growth.

Canada has the same opportunity.

Every bottle of 100 per cent Canadian wine generates approximately $88.50 in economic activity across agriculture, manufacturing, tourism, and hospitality, significantly higher than imported alternatives. Increasing domestic market share is therefore not about limiting choice. t's about building demand for quality Canadian products that benefit our communities, our workers, and our businesses." 

The Deloitte analysis underscores the importance of policy coherence. Long term growth in this sector depends on stable investment conditions, predictable tax treatment, and alignment across agriculture, trade, and tourism policy.

Other major wine producing jurisdictions have recognized this. The European Union, for example, operates under coordinated national and regional wine strategies that align market access, investment support, and sector development objectives. These frameworks are designed to drive competitiveness, encourage reinvestment, and deliver measurable economic outcomes for their domestic industries.

Canada does not need to replicate these models, but it can take the same strategic approach.

Canada already has a production-based investment framework that supports reinvestment and competitiveness. Ensuring that it remains stable and aligned with long-term growth objectives is a practical and cost-effective way to support expansion.

This is not about choosing between imports and domestic production. It is about recognizing that a stronger Canadian grape and wine industry delivers significant economic value at home. Expanding that industry supports rural economies, creates skilled jobs, and increases returns across the value chain.

The path forward is clear.

By dropping interprovincial barriers, clear investment policy, regional development, and tourism, Canada’s wine industry can grow into a significantly larger contributor to the national economy.

The question is not whether the opportunity exists.

It is whether we choose to unlock it.

Because when Canadian wine grows, so do the communities, jobs, and regional economies that depend on it.

Dan Paszkowski, President and CEO, Wine Growers Canada