Food Prices Force Canadians to Rethink Grocery Habits: Key Insights from Dalhousie University Report
A recent bi-annual report from Dalhousie University’s Agri-Food Analytics Lab highlights the profound impact of food price inflation on Canadian consumers, prompting significant changes in shopping behaviors. The Canadian Food Sentiment Index: October 2024, released on October 10, surveyed over 3,000 Canadians, revealing critical trends in how they navigate the escalating costs of food.
Since 2019, food prices in Canada have surged by 27%, with a staggering 84% of respondents identifying food as the category that has experienced the most substantial price increase over the past year. To cope with these rising costs, 48.2% of Canadians reported actively seeking sales and discounts. Many are also turning to coupons, opting for budget-friendly stores, and switching to generic brands. Notably, 22% of participants admitted to purchasing fewer non-essential items, such as ice cream, instead favoring bulk staples like pasta and beans.
While food spending per capita has seen a slight uptick, the report indicates that expenditures have stabilized above pre-pandemic levels after a significant spike at the onset of COVID-19. Early in the pandemic, restaurant spending plummeted to under $40 per capita, largely due to closures and health restrictions.
Food insecurity remains a pressing issue, particularly for younger Canadians. The report reveals that 46% of Generation Z respondents have resorted to using savings or borrowing funds to afford groceries—this is the highest percentage among all age groups. In contrast, only 13% of individuals born before 1946 reported needing financial assistance for food.
Affordability emerged as the primary concern for 47.3% of respondents, while 24.9% prioritized nutrition and 16.7% valued taste. Many participants indicated that they are increasingly attentive to nutritional labels, favoring local products and taking measures to minimize food waste.
When asked about trust in the Canadian food industry, farmers emerged as the most trusted group, scoring 3.69 out of five. They were followed closely by Health Canada and the Canadian Food Inspection Agency. In contrast, major grocery chains received the lowest trust ratings. The report also indicated that over 54% of Canadians believe food prices are rising more rapidly than government estimates suggest.
As food inflation continues to reshape the landscape of consumer behavior, Canadians are adapting by prioritizing affordability and making informed choices about their grocery purchases. This evolving dynamic in food spending reflects broader economic challenges and highlights the importance of trust in the food industry as consumers navigate these turbulent times.
Source: Miranda Leybourne, Dalhousie University’s Agri-Food Analytics Lab
