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Canadian consumer still under pressure with food prices: Dalhousie report

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The latest Canadian Food Sentiment Index, Vol. 2, No. 2 (Spring 2026) bi-annual report, produced by Dalhousie University’s Agri-Food Analytics Lab, reveals a Canadian consumer who is still under pressure—but adapting. 

While inflation fears are easing, affordability remains the dominant force shaping decisions, behaviours, and trust in the food system, said Dr. Sylvain Charlebois, Senior Director of the Lab, who authored the report with Dr. Stacey Taylor,  Dr. Armagan Ozbilge, and Dr. Hamed Aghakhani. 

Charlebois said the Index tracks how Canadians perceive and experience key food-related issues over time. Drawing on insights from approximately 3,000 respondents, the Index provides a consistent and data-driven view of evolving consumer sentiment on food affordability, expenditures, behaviours, and trust.

The full report can be found here.

Charlebois outlined a few highlights from this edition:

  • Food remains the top household concern, with over 80% of Canadians identifying it as the expense that has increased the most.
  • While inflation is still widely felt, perceptions are shifting toward more moderate increases, with many now expecting food inflation in the 5%–7% range over the next year.
  • Grocery spending continues to rise, with households reporting spending about $23 more per month on food compared to a year ago.
  • Financial vulnerability persists, as 34% of Canadians report drawing from savings or borrowing to afford food.
  • Affordability dominates food values, far outweighing nutrition, taste, or sustainability considerations.

Additional insights worth noting, added Charlebois:

  • Dietary habits are gradually shifting, with the share of Canadians identifying as strictly omnivorous declining, while more flexible approaches such as flexitarian diets are gaining traction—likely reflecting both rising meat prices and increased health awareness.
  • Protein choices are becoming more strategic, with consumers balancing cost and perceived health benefits, contributing to a slow diversification of diets rather than a full transition away from animal proteins.
  • The Health Canada front-of-package nutrition symbol is having a clear impact, with over 60% of Canadians indicating they are less likely to purchase a product displaying the label—suggesting the policy is influencing behaviour primarily as a deterrent.
Sylvain Charlebois
Dr. Sylvain Charlebois

“Overall, the data suggests that while some pressures may be stabilizing, affordability continues to define how Canadians interact with the food system—shaping not only what they buy, but how they think about nutrition, value, and risk,” said Charlebois.

There is overwhelming support among Canadians for eliminating retail taxes on food, with about two-thirds (66.7% in Spring 2026) strongly agreeing with the idea. When combined with those who somewhat agree (21.0%), nearly 88% of respondents are in favour. Neutral responses remain limited, while opposition is minimal, with fewer than 5% expressing any level of disagreement. Overall, the data suggests a broad and consistent consensus in favour of removing food-related retail taxes, explained the report.

The report said the Spring 2026 results show strong support across all provinces for eliminating retail taxes on food, though levels vary regionally and have shifted slightly over time. 

“Canadians continue to feel pressure on their food budgets, but Spring 2026 data suggests a slight shift from anxiety to adaptation. While affordability remains the dominant food value, consumers appear to be moderating their expectations for inflation through versatile strategies, from using food-rescue apps and seeking discounts to adjusting dietary choices and spending habits. Still, with one-third of Canadians dipping into their savings or borrowing money to purchase food, affordability appears to remain front and centre,” said Özbilge.

“Affordability far outranking nutrition shows that Canadians are under significant financial stress to provide healthy meals for their families, which is concerning. The drop in an omnivorous diet in favour of adaptable diets such as the flexitarian gives insight on how Canadians are managing their food budgets in difficult times,” said Taylor, Agri-Food Analytics Lab Research Fellow.

“Affordability continues to define the Canadian food economy, but policy tools like front-of-package labelling are accelerating change at the shelf. Consumers are making faster, more decisive choices, and that will force the industry to adapt—either through reformulation or repositioning,” added Charlebois.

Atlantic Canada continues to lead, with particularly high support in Newfoundland and Labrador and Prince Edward Island. The Middle of the country – Saskatchewan, Manitoba and Ontario – also show strong backing, while Quebec remains the least supportive, though still with a majority in favour and nearly catching up with the other provinces’ support, said the report. 

“Compared to Spring 2025, some provinces—notably Prince Edward Island, New Brunswick, and Quebec—have recorded notable increases, while others, such as Saskatchewan and Nova Scotia, have seen slight declines. Alberta, for its part, experienced a more pronounced drop, with support falling from 71.1% to 63.2%. Overall, support remains widespread and robust across the country.”

ali Shot80 photo
ali Shot80 photo

The report also noted that trust in food institutions remains relatively stable, with modest shifts between Fall 2024 and Spring 2026.

“Health Canada now ranks highest (3.89), slightly ahead of Canadian farmers (3.86), who previously held the top position. Regulatory bodies such as the Canadian Food Inspection Agency and Agriculture and Agri-Food Canada continue to score strongly, reflecting sustained confidence in public institutions,” it said. 

“Since Fall 2025, the largest gains in trust are observed for the Canadian Food Inspection Agency and Agriculture and Agri-Food Canada, followed by Health Canada, indicating a strengthening of confidence in government oversight. In contrast, major grocers remain the least trusted group despite a slight improvement, while independent grocers and food manufacturers sit in the mid-range.

“Overall, trust levels are broadly steady, with public institutions maintaining an edge over private-sector actors.”

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Mario Toneguzzi
Mario Toneguzzi
Mario Toneguzzi, based in Calgary, has more than 40 years experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald covering sports, crime, politics, health, faith, city and breaking news, and business. He is the Co-Editor-in-Chief with Retail Insider in addition to working as a freelance writer and consultant in communications and media relations/training. Mario was named as a RETHINK Retail Top Retail Expert in 2024.

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