About
the 2nd Consumer Survey
This report is the second of two Consumer Surveys to be conducted for gathering insights into Canadians’:
- Grocery shopping habits
- Perceptions of food and beverage products available to them (e.g., safety)
- Priorities and considerations when grocery shopping
- Experience amid increasing food prices and inflation
- Labour market perceptions (e.g., views of the Temporary Foreign Worker Program)
This survey follows the October 2023 study and included several tracking items to measure change.
Introduction and Methodology
A total of 1,500 adult residents from across Canada were surveyed online, between November 6 – November 12, 2024.
The sample was randomly drawn from Leger’s web panel of potential survey respondents.
Post-stratification weights were applied to the sample based on 2021 census population figures to ensure representation by province, age, and gender.
An associated margin of error for a probability-based sample of this size would be ±3%, 19 times out of 20.
Persistent Inflation Concerns: While Canada’s overall inflation rate fell to 2.5% by November 2024, a significant majority (63%) of Canadians still perceive grocery prices as having increased “a lot” in the past year. This is a decrease from 84% in 2023, but only 14% believe food inflation is actually “slowing down.”
Profit-Driven Perception: Consistent with 2023 findings, two-thirds (66%) of Canadians attribute food inflation to profiteering within the food & beverage supply chain, rather than natural inflationary pressures. When asked to assign blame, grocery retailers (58%) and governments (26% in a revised question format) were most frequently cited.
Evolving Grocery shopping Habits: Nearly half (46%) of Canadians report changing their grocery shopping habits in the past year, primarily driven by the need to save money (72%) and maintain/improve health (58%). Environmental sustainability is a lesser concern (38%).
Price Over Brand: Over half of Canadians continue to prioritize price over brand loyalty, reinforcing the impact of inflation on consumer behaviour. Trust in food sold in Canadian grocery stores remains relatively low at 68%, a slight increase from 63% in 2023. There are some generational cleavages here (e.g., 79% of seniors express trust compared to only 61% of those under 35 years of age).
Cost-Saving Strategies: Top money-saving actions include paying closer attention to sales/specials (76%), eating leftovers/reducing food waste (56%), and shopping at less expensive stores (56%).
Health-Conscious Choices: To improve health, Canadians are increasingly cutting back on sugar (53%), limiting processed foods (52%), reading labels more carefully (41%), and eating healthier snacks (41%). Weight loss, gut health, and heart health are the primary motivations for using food & beverages to address health issues.
Conflicting Perceptions of the Labour Market: While 58% of Canadians would accept almost any job if unemployed, 80% agree that minimum wage is not a living wage.
Labour Shortages: Despite only 25% characterizing local unemployment as “low,” 44% believe Canada frequently experiences a severe overall labour shortage, rising to 62% for specific industries. Among those who agreed that some specific industries are facing a sever labour shortage, healthcare (78%), agriculture/farming (51%) and construction (46%) emerge as the most in need. Food and beverage processing registers 28% (7th in a list of 10 industries).
Temporary Foreign Workers: Almost 7 in 10 Canadians are aware of the Temporary Foreign Worker Program (TFWP), with a majority (54%) deeming it mostly or very necessary, compared to 32% who view it as unnecessary. This despite recent negative media coverage and government pledges to restrict the program.
Food Inflation Revisited
Inflation has continued to dominate headlines in the last year, even though the Canadian overall inflation rate declined to 2.5% by November 2024.
Our first consumer survey conducted in October 2023 found a near-universal perception (96%) that the price of groceries had increased in the past 12 months (i.e., October 2022 to October 2023), with 84% saying prices had increased “a lot” (especially from the perspective of seniors).
Exactly one year later, perceptions of food inflation are only somewhat less negative. Essentially, Canadians continue to see food inflation as rampant, but below its peak:
- Tellingly, only 14% believe that food inflation is “slowing down” compared to 11% a year earlier. Men are much more likely to believe food inflation is slowing.
- The proportion who says the price of groceries has increased “a lot” in the past year is still high at 63%, but down significantly from 84% registered in 2023. Consistent with the 2023 survey results, seniors are much more likely to have perceived a steeper rise in prices.
- Consistent with the above finding, consumers today are less likely to say that grocery prices have gone up by more than 20% over the past year than they were in the first Consumer Survey, when 27% held this view.
Tracking Perceptions of Food Inflation
Tracking Perceptions of Food Inflation
Back in October 2023, two in three Canadians believed the main players in the food and beverage supply chain (i.e., producers, processors, and retailers) were taking advantage of inflation to increase their profits (over and above the impact of inflation). One year later, nothing has changed: Canadians are just as likely to say food inflation is mainly caused by price increases to raise profits (rather than just natural inflation in the supply chain): 66% today vs. 69% in 2023.
Both the 2023 and 2024 consumer surveys drill down to examine the question of who the public thinks is mostly to blame for profiteering. In this current survey, however, the question was asked in two ways: the first replicated the wording and options from 2023, while a new version included “governments” as an option for blame, along with adjusted question wording to reflect the fact that governments in Canada do not make “profits.” The addition of the alternate question was based on feedback received from participants at the 2024 FPSC Summit.
- Based on the tracking question, there is no change in who within the supply chain is to blame: grocery retailers continue to lead the way, with 58% blaming them (compared to 59% in 2023). Food & beverage processors are blamed by 13%, compared to 10% last year.
- Our new question on who to blame, which includes “governments,” has 26% blaming governments and only 29% blaming retailers. Food and beverage processors register 6%. The plurality says all are “equally to blame.”
- Quebeckers are significantly more likely to assign equal blame across the supply chain.
Tracking Perceived Causes of Rising Costs
Costs: Tracking Who is to Blame
Trends in Grocery Shopping
Perceptions of the Labour Market and the Temporary Foreign Worker Program
The 2024 survey reveals conflicting views on Canada’s labor market. Most Canadians believe that many people won’t work for minimum wage despite needing employment, while 58% of respondents said they would personally accept almost any job if unemployed. Simultaneously, 8 in 10 agree that minimum wage is not a living wage anywhere in Canada. This suggests a widespread perception that a significant portion of the labour market offers unsustainable conditions: Canadians are expected, and often willing, to accept minimum wage jobs even though they cannot provide a living.
While only 25% of respondents characterize local unemployment as “low,” suggesting limited personal experience with labour shortages, a significant proportion perceive broader shortages: 44% believe Canada frequently experiences a severe overall labour shortage, and this number jumps to 62% when considering specific industries, with both views more prevalent in Quebec. This discrepancy suggests a disconnect between individual observations of local unemployment and the perceived national or industry-specific labour market. This apparent gap is potentially driven by national media coverage (i.e., of businesses and/or industries facing severe labour shortages).
Among respondents who believe some Canadian industries face severe labour shortages, healthcare was most frequently identified (78%), followed by agriculture/farming (51%) and construction (46%). Food and beverage processing was selected by 28%, while financial services was least likely to be perceived as experiencing a shortage, at only 7%. These results are based on a selection from 10 possible industries.
Perceptions of the Labour Market
Industries with the Largest Perceived Labour Shortages
By November 2024, when the survey was conducted, the Temporary Foreign Worker Program (TFWP) had been prominently included in media coverage and opinion pieces critical of the federal government’s immigration policies, and of the TFWP.
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In response, the government pledged to place restrictions on the program.
The survey reveals that awareness of the TFWP is broad, with close to 7 in 10 saying they have heard of it at least “a little” (45%) or “a lot” (23%). Awareness rises with age and is higher in Alberta.
In terms of perceived need for the program, the proportion who describes the program as either mostly or very necessary outweighs those who deem it unnecessary by a close 2 to 1 ratio (54% to 32%, respectively).
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Seniors and Quebeckers are much more likely to view the program as necessary.
2. https://www.ctvnews.ca/politics/canada-to-reduce-the-number-of-temporaryforeign- workers-liberals-1.7014058
Awareness and Views of the TFWP
PREAMBLE TO FOLLOW-UP QUESTION: The Temporary Foreign Worker Program (TFWP) allows Canadian employers to hire foreign workers on a temporary basis to fill jobs in specific occupations or industries where there are not enough Canadian workers available.
Implications
The implications of the second consumer survey are as follows:
Value Proposition Beyond Price: While price remains a dominant factor for consumers, health and convenience are also gaining importance. Processors can capitalize on this by developing products that cater to these needs. Focusing on healthier ingredients, clear labeling (addressing the increased scrutiny of labels), convenient packaging, and highlighting health benefits (e.g., gut health, weight management) can attract consumers willing to spend a bit more for added value.
Prepare for Evolving Consumer Habits: Consumer shopping habits continue to evolve, driven by cost savings and health concerns. Processors could adapt to these shifts by offering a range of product sizes and price points, promoting value-added products that align with health trends (e.g., reduced sugar, less processed), and minimizing food waste through packaging and product innovation. The focus on leftovers also suggests opportunities for products that facilitate easy meal preparation and storage.
For more information, please contact:
Kevin Elder
FPSC Project and Government Relations Manager
