Persistent inflation concerns continue to influence behaviours, with roughly nine in 10 Canadians reporting food is more expensive than it was three months ago, and more noticing the practice of “shrinkflation.”

Caddle conducted a representative survey of over 3,000 Canadians in July 2023.

It found that meat still dominates as the food category the public feels is the most expensive, though only 42% believed that this year, compared to 50% in a similar survey conducted in 2022. There has also been a drop in the amount of people who believe dairy (3%) and seafood (1%) have risen, though categories like fruit and bakery are still seen as more expensive than a year ago.

Dr. Sylvain Charlebois, Dalhousie University food analyst, points out that grocers nationwide are adapting to a “much more frugal marketplace,” with, for example, Loblaw and Metro converting more stores into discount banners. He notes that that while the price of food remains high, Stats Canada numbers reveal that prices are “calmer” than they were last year. However, as the Caddle results show, 90% of consumers still think food is too expensive.

“Once you spook a customer base, they are spooked for a while,” he says, especially in certain regions, where food prices reflect “different realities.” For example, in the Atlantic provinces, the food inflation rate is 15%, while in Quebec, it’s minus 1.2%.

While food price spikes are abating in some areas and climbing in others, consumers are taking more note of “shrinkflation,” the practice of maintaining a product’s price, but reducing its size. In fact, 44% of consumers report “shrinkflation” among baked goods, compared with 39% in 2022.

“Shrinkflation” is not a new phenomenon, Charlebois says, but more buyers are taking note, especially in categories like meat, baked goods and dairy.

In 2023, 67% of consumers report cutting back their meat consumption in response to price increases, versus 58% in 2022, a trend seen across genders and age groups.

Caddle also found that 25% of respondents are turning to private label “much more” than they were before, versus 18% in 2022, while the numbers are even year-over-year when it comes to those who say they are buying “a little more” private label (26%). Regionally, the Atlantic region – which is experiencing the most food inflation – is also turning to private label in the greatest numbers.

In terms of other behaviours, 39% of consumers (9% more than in 2022) are turning to grocery flyers more often, while 32% (7% more) are using physical or digital coupons, with millennials having the highest usage increase, and Ontarians the biggest year-over-year increase.