Brenda O’Farrell
The Advocate

The rising price of groceries is still a burning issue for consumers, with many of them changing their habits to manage costs, according to the first Canadian Food Sentiment Index, a report issued in October by the Agri-Food Analytics Lab at Dalhousie University in Halifax.

Since 2019, food prices in Canada have increased by 27 per cent, the report states. This sharp hike has resulted in 84 per cent of consumers surveyed pointing to groceries as being the category of spending that has affected them the most, and almost half – 48.2 per cent – admitting that they now actively seek out sales and discount offers like coupons to manage their grocery bills.

According to the report, food spending has reached an average of $316.03 per Canadian per month, based on Statistics Canada data. For a family of four, this amounts to about $1,265 per month, or just over $15,000 a year.

The survey shows that 84 per cent of respondents say food expenses was the one spending category that increased the most for them in the last 12 months, more than household items and supplies, cited by 43 per cent of respondents; transportation, highlighted by 36.6 per cent of those surveyed; and utilities, flagged by 35.8 per cent.

Faced with food price inflation, consumers have made changes to the way and where they shop, with almost half of respondents, 48.2 per cent, saying they actively shop sales and seek bargains. Almost a third, 30.5 per cent, said they use more coupons, while almost a quarter, 24.9 per cent, shop at cheaper stores and 22 per cent purchased non-essential foods like ice cream less frequently.

The report shows a growing number of Canadians who claim to have dipped into their savings or borrowed money to buy food, with younger Canadians most affected by this trend.

“This pattern reflects the substantial economic pressures younger generations face, possibly due to escalating food costs, higher living expenses or unstable early-career employment,” the report states.

The statistics show 13 per cent of members of the so-called Great Generation, individuals born before 1946, have admitted to having to draw from their savings or borrow money to put food on the table, while 46 per cent of the Gen Z cohort, people born between 1997 and 2012, finding themselves in the same financial pinch.

The overall picture of what consumers value most when shopping also points to how price is a big factor, with 47.3 per cent of respondents admitting that affordability – more than nutrition, taste and environmental impact –  is a determining factor in what they buy at the grocery store.

Perhaps another measure, albeit a less quantitative one, is the finding that more than half of consumers surveyed believe that the hike in food prices is actually higher than what official government statistics claim, with 54.5 per cent believing government agencies are underreporting food prices.