Canadian households are grappling with unprecedented food inflation that now dominates their financial concerns, according to the latest findings from Dalhousie University's Agri-Food Analytics Lab. The fall 2025 edition of the Canadian Food Sentiment Index reveals that rising grocery costs have surpassed utilities, housing, and household supplies combined as the primary financial worry for families across the nation.
Monthly Food Spending Reaches Critical Levels
The comprehensive study, based on surveys of approximately 3,000 respondents nationwide, shows households spent an average of $515 each month on food during fall 2025. This breaks down to $406 for groceries consumed at home and $109 for food away from home.
Perhaps more alarming is that one in five Canadian households now pays more than $600 monthly for groceries. The most common spending range falls between $300 and $500, indicating that persistent food inflation is pushing more families into higher expenditure brackets.
Changing Consumer Values and Behaviors
As financial pressures mount, Canadians are fundamentally shifting their food priorities and shopping habits. The report indicates that affordability has become the top consideration when making food purchases, while nutrition has gained importance at the expense of taste preferences.
This shift suggests Canadians are prioritizing cost and health over indulgence during these economically challenging times. The authors interpret this trend as consumers making deliberate choices to balance their budgets with nutritional needs.
Five Popular Cost-Saving Strategies
Canadian households have adopted several money-saving approaches to combat rising food costs, with each of these strategies being used by at least 20% of respondents:
- Actively seeking out sales and discounts
- Using coupons for grocery purchases
- Searching for deals online before shopping
- Switching to cheaper grocery stores
- Buying fewer non-essential foods like ice cream
Local Food Movement Gains Momentum
One surprising development in the face of economic pressure is the dramatic surge in support for Canadian-grown products. The report shows that 51.9% of Canadians now frequently or always choose local food options, representing a substantial increase from 33.5% just one year earlier.
The data reveals that occasional buyers are transforming into regular supporters of local products. Those who "often" choose local options jumped from 25.3% to 41.5%, while the "sometimes" category decreased from 50.2% to 35.4%.
This significant behavioral shift indicates growing consumer commitment to supporting domestic food producers despite financial constraints.
Dining Out Takes a Back Seat
The financial strain has also dramatically impacted restaurant and takeout spending. The study found that most Canadians are consciously limiting their food expenses outside the home, with approximately one-third spending less than $50 monthly on restaurant meals and nearly one-quarter keeping their spending between $51 and $100.
This conservative approach to dining out reflects broader adjustments in household budgeting as families prioritize essential grocery spending over discretionary food purchases.
The Canadian Food Sentiment Index, conducted bi-annually and modeled after Purdue University's Consumer Food Insights survey, continues to provide crucial data on how economic pressures are reshaping the country's relationship with food and spending habits.
