Consumer trend
Everyone is talking about inflation:
- 84% of Canadians are concerned about the increasing cost of essential products;
- 57% are finding it difficult to adequately feed their family;
- 35-54-year-olds and more modest households are among the most vulnerable.
Little respite on the horizon in 2022
The soaring price of raw materials, transport, and labour, breakdowns in the supply chains, and natural disasters all contribute to increasing the grocery bill.
The extent of inflation varies based on product
The grass is a little greener in Quebec
Buying power concerns are divided from one end of the country to the other, but Quebecers are standing out for their (relative) optimism:
- 68% estimate that their financial situation will remain the same or improve in 2022,
the highest rate among all provinces; - only 51% think that the cost of food will increase in 2022 (vs. 62% in the country).
Already adjusting
Adaptation strategies are emerging in response to the increased cost of living. Many plan to adjust their eating habits in 2022, particularly by reducing food waste and buying more frozen products. The price inflation will probably also accelerate major trends: buying in bulk, consuming less meat, and cooking at home are some popular resolutions this year.
More considered purchases, search for discounts, and less loyalty: strategies in the fight against the high cost of living
These behaviours have an impact on brand and grocer loyalty. Thankfully, to win back the hearts of their customers, there are solutions other than price wars. In a growing climate of uncertainty, loyalty programs are becoming more and more common. 73% of consumers say this type of initiative has an impact on where they choose to shop!
Additional sources: Numerator Canada, Inflation Insights, January 2022 / Institut Angus Reid, Inflation Anxiety: More Canadians say they’re worse off now financially than any time since 2010, January 2022
