Food costs cut deep in consumer food report

Abi-annual report from Dalhousie University’s Agri-Food Analytics Lab reveals that food price inflation is forcing Canadians to significantly alter their shopping habits.

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The Canadian Food Sentiment Index: October 2024, released Oct. 10, is based on responses from more than 3,000 Canadians.

Why it matters: The report is the latest in several of the university’s public food preference check-ins that have noted changing consumer habits due to inflation and food prices.

Food prices have increased 27 per cent since 2019, the report said, and 84 per cent of respondents cited food as the expense that has surged the most in the past year. Nearly half — 48.2 per cent — reported that they look for more sales and discounts, while also using coupons, shopping at less expensive stores and switching to generic brands.

Twenty-two per cent of respondents said they buy fewer non-essential foods, such as ice cream, and opt for bulk or staple foods like pasta and beans.

Food spending per capita has had a modest increase. A notable spike in food spending occurred at the onset of the COVID-19 pandemic, but expenditures have since stabilized at just above pre-pandemic levels, report authors noted.

Restaurant spending took a hit during the pandemic, dropping to less than $40 per capita in early 2020 due to pandemic-related closures and restrictions.

Food insecurity is a growing challenge, especially among younger Canadians, according to the report. Nearly half of Generation Z — 46 per cent — reported drawing from savings or borrowing money to afford groceries, the highest percentage among all age groups. Only 13 per cent of the oldest generation, those born before 1946, said they needed financial help for food.

Some 47.3 percent of respondents said affordability was their main concern. Nutrition, at 24.9 per cent, and taste, at 16.7 per cent, also scored highly.

Many respondents said they check nutritional labels, opt for local foods and take steps to reduce food waste.

Farmers were the most trusted choice when respondents were asked about trust in the Canadian food industry, with a score of 3.69 out of five. They were closely followed by Health Canada and the Canadian Food Inspection Agency.

In contrast, major grocery chains received the lowest trust scores. The report also showed that most Canadians believe food prices are rising faster than government estimates. Over 54 per cent of respondents said they perceived food inflation to be higher than official reports.