CANADIAN MACRO TRENDS

Forces impacting the daily food and beverage habits of the Canadian consumer

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Population shifts, rising prices, and consumer consciousness towards diet and sustainability greatly influence how Canadians engage with food and beverage outside of their homes. These forces shape consumer behavior in the Canadian foodservice industry, impacting their choices and preferences.

Despite the challenges posed by these forces, the foodservice sector is rebounding, with both dollar expenditure and traffic experiencing growth compared to the previous year. In 2023, foodservice dollars increased by 19% and traffic by 12% compared to 2022.

1. POPULATION SHIFTS

The changing demographics of Canada have a significant influence on the demand for food and beverages consumed outside the home. This includes a rise in the number of smaller households, with 38% of Canadians now living in 1-2 person households. Millennials have surpassed boomers as the largest adult generation, and multicultural population growth is on the rise. It is important to cater to the preferences and needs of these diverse consumer groups.

2. RISING CONSCIOUSNESS AND DIETARY RESTRICTIONS

Consumer consciousness and dietary restrictions are playing an increasingly significant role in shaping the food and beverage choices of Canadian consumers. Notably, environmental concerns have gained prominence, with a 12.7% increase in individuals who strongly believe that environmental reasons should guide their consumption decisions.

This shift towards consumption consciousness is also reflected in the fact that 51% of Canadians are actively trying to exclude sugar from their diets, while approximately 36-37% are reducing their consumption of processed foods and trans fats.

Furthermore, a significant 27% of adults follow unique dietary regimes. Offering a variety of dietary options, such as vegetarian, vegan, and gluten-free, can cater to the diverse needs of consumers.

3. RISING PRICES

Inflation and rising prices are key factors in how Canadians consume food and beverages outside the home. 77% of Canadian citizens believe that inflation risk personally impacts them. Consumers are actively seeking ways to save money and are uncertain about their economic future. They desire a return to "normal pre-pandemic" consumption in foodservice, with a focus on affordability. Foodservice operators should offer cost-effective options without compromising quality to attract and retain customers.