Canadians Confront Rising Grocery Costs Amid Food Inflation

Food inflation has emerged as a significant concern for Canadians, according to the latest findings from the fall 2025 edition of the Canadian Food Sentiment Index published by Dalhousie University’s Agri-Food Analytics Lab (AAL). The report reveals that Canadians are adjusting their diets and shopping behaviours in response to escalating grocery prices, with many households now spending more than they did in the spring of this year.

The AAL’s bi-annual report draws on data from the Consumer Food Insights survey conducted by Purdue University. It surveys approximately 3,000 Canadians on various topics related to food affordability, spending habits, and consumer beliefs. As the year comes to a close, several key trends have emerged regarding Canadians’ feelings toward the food landscape.

Increased Food Spending

Canadians are facing higher grocery bills, with the average household spending $515 per month this fall. This total includes $406 spent at home and $109 on meals away from home. Notably, one in five households reports spending more than $600 each month. Most commonly, households are spending between $300 and $500, highlighting the impact of persistent food inflation on consumer habits.

As food costs rise, affordability has become a pressing issue. The report indicates that the importance of nutrition has increased while taste has declined in priority for many consumers. This trend suggests that Canadians are prioritizing health and cost over culinary indulgence amid ongoing economic pressures.

Shift Towards Local Products

The report also highlights a growing preference for locally sourced foods. A remarkable 51.9% of respondents now choose local products “always” or “often,” a significant increase from 33.5% last year. The number of individuals selecting local options regularly has risen sharply, indicating that occasional buyers are transitioning to become consistent supporters of local agriculture.

This shift in consumer behaviour reflects a broader movement among Canadians to favour homegrown products, with the authors of the report noting a modest increase in the percentage of people who always buy local.

Adaptations in Consumer Behaviour

Amid rising costs, Canadians are employing various strategies to cope with food inflation. The report outlines five popular cost-saving measures, each adopted by at least 20% of respondents: seeking out sales, using coupons, searching for deals online, shopping at lower-cost stores, and reducing purchases of non-essential items like ice cream.

Additionally, many Canadians are limiting their takeout and restaurant dining. Approximately one-third of respondents spend less than $50 per month on takeout, while nearly a quarter spend between $51 and $100.

The data also suggests a shift in dietary preferences, with fewer omnivores and a rise in flexitarians—those who primarily consume plant-based foods with occasional animal products. The report notes a 6.9% decline in omnivorous diets, while surprisingly, vegetarian diets have also decreased by 3.5%.

Record High Food Insecurity

Food insecurity is at an alarming level, with 25.5% of Canadians experiencing difficulties accessing sufficient food. Although fewer Canadians are relying on savings or loans to purchase food compared to the previous year, the situation remains dire, particularly in regions like New Brunswick, where reliance on borrowed funds has increased by 6%.

Respondents report that food is the primary area of financial concern, with more than four in five indicating it has risen the most among their expenses in the past year. While Canadians also cite rising costs in utilities, housing, and household supplies, the impact of food price increases surpasses that of these categories combined.

As 2025 draws to a close, many Canadians anticipate that food prices will continue to rise, though there is a sense of cautious optimism. Most respondents expect moderate inflation between 2% and 7%, a shift from the more extreme predictions made earlier in the year.

Overall, the findings from the Canadian Food Sentiment Index underscore the significant changes in consumer behaviour driven by food inflation, revealing a landscape where affordability, local sourcing, and dietary adaptations have become paramount concerns for many Canadians.