Canadians continue to prioritize value at the grocery store
The soaring cost of living in Canada is a growing problem. Nearly half of Canadians told Statistics Canada that rising prices are having a significant impact on their ability to meet their day-to-day expenses. Concerns about the high cost of groceries, “shrinkflation” and the threat of tariffs on goods imported from the United States have occupied news headlines. Even without the tariffs, Canada’s Food Price Report concluded that food prices are expected to rise in 2025—to the tune of a 3% to 5% increase compared to 2024.
To understand how shoppers view value in such economically fraught times, Caddle teamed up with Dalhousie University to survey more than 3,000 people across the country. The results show Canadians are mindful of ballooning bills and are focused on getting bang for their buck in grocery store aisles.
READ: New study shows shoppers are putting price first
A majority of shoppers said they always (60.9%) or often (27.7%) look for discounts or deals when grocery shopping. Indeed, 48.6% of people surveyed said they often choose what product to purchase solely based on price, with 26.3% saying price is always the determining factor.
That’s not to say shoppers don’t have other considerations. Best quality for the price was one of the most important determinators of value to shoppers by a significant margin (64.1%), followed by discounts and promotions (49.7%), lowest price (41.5%) and better taste or freshness (33.4%). In fact, consumers identified price (36.2%) and quality (26.5%) as the two biggest influences of their perception of a product’s quality.
It’s clear that shoppers’ pursuit of value influences not only what and where they buy, but also which brands they trust. Canned or shelf-stable foods are seen as the best investment (28.9%), followed by frozen foods (26.5%) and fresh produce (24.5%). Consumers were much more likely to say they always, often or sometimes prioritize private-label brands over national brands to score better value—and they aren’t opposed to switching brands if a competitor offers better value.
Thirty-five per cent of Canadians said they typically find the best value at discount retailers such as No Frills, followed by traditional grocery stores such as Superstore or Sobeys (21.4%), and Costco (18.3%). But, that doesn’t mean they aren’t willing to shop elsewhere. Though the majority (76%) of respondents said they have not changed where they shop in the past year, there were generational differences. Generation Z (38%) and millennials (31%) were most likely to say their store choice has changed.
READ: Marrying value and premium ingredients key to swaying consumers
For the 24% of those Canadians surveyed who have changed where they shop, they said they did so to take advantage of discounts and deals (35.8%), shop at discount stores more often (35.1%) and buy more groceries from Costco (23.2%). On that front, shoppers said they prefer buying groceries in bulk for savings, sometimes (34.5%) or often (34.1%), even if it means spending more up front. Interestingly, generation Z was the generation most inclined to save by always buying in bulk (38.5%).
Even with noticeably higher prices, most consumers say they haven’t changed how often they grocery shop (53.2%), with boomers most likely to have maintained their status quo (66.2%). Yet, nearly half of respondents admitted they’re buying smaller amounts more frequently (25.4%) or buying more items with less frequent trips (21.4%). They’re also likely to decide which foods to buy based on changing food prices, and strive to balance both quantity and quality when shopping for comparable products (49.4%).
Against the backdrop of a trade war, new opportunities are opening for brands. Shoppers overwhelmingly say they foresee grocery prices getting more expensive, and say promotions (51%), better quality (33.4%) or a made in Canada designation (33.3%) are motivators for trying a new brand or product.
With an increased focus on Canadian-made goods, rising food inflation and interest in private-label brands that deliver value, brands are well positioned to become new household favourites in the months ahead. It’s clear Canadians are open to embracing change in the grocery store aisles—now it’s up to brands to make a lasting impression.
This article was first published in Canadian Grocer’s March/April 2025 issue.
