Canadian Millennials are increasingly trading down in some categories while continuing to spend selectively in others, reshaping spending patterns across grocery, discount retail, foodservice, and consumer goods.
A new study from Calgary-based Cashew Research suggests the same consumer may purchase private label groceries, warehouse club staples, premium meat, specialty coffee, and skincare products within the same week depending on where they perceive value.
The findings point to a significant shift in shopping behaviour as affordability pressures continue to influence household budgets across Canada. Rather than reducing spending evenly, many Millennials appear to be reallocating spending more carefully while becoming less loyal to traditional brands and retailers.
The study surveyed 783 Millennials about grocery shopping habits, spending patterns, and lifestyle adjustments over the past year.
Millennials Are Becoming More Flexible Shoppers
The research indicates many Millennials are making purchasing decisions category by category instead of maintaining broad loyalty to national brands or retailers.
Among respondents, 59% said they strategically save in some categories while spending more in others, while only 18% described themselves as loyal to the same brands regardless of price.
Meanwhile, 41% identified as “price-sensitive switchers,” regularly changing brands to secure lower prices, while another 27% described themselves as “value optimizers” focused on balancing quality, price, and features.
Consumers are also increasingly shopping across multiple retail formats. Sixty-four percent of respondents said they visit different stores to find better deals, while 56% reported shopping at multiple retailers depending on the products or ingredients they need.
The trend reflects broader changes across retail as consumers move fluidly between discount retailers, warehouse clubs, ethnic grocers, specialty food stores, premium brands, and private label products depending on the purchase.
That shift may create additional pressure for middle-market retailers and national brands that lack either a strong value position or clear premium positioning. Consumers increasingly appear willing to aggressively trade down in some categories while reserving discretionary spending for products they believe offer noticeably better quality, convenience, or enjoyment.
The shift also helps explain why discount retailers, warehouse clubs, specialty grocers, and premium niche brands can all attract the same consumer at different moments throughout the week.
Grocery Inflation Continues To Shape Spending Habits
Affordability concerns remain a major factor shaping shopping behaviour.
According to the 2026 Canada Food Price Report, grocery prices are expected to rise between 4% and 6% this year, with the average Canadian family of four projected to spend as much as $17,571 annually on food.
The Bank of Canada has also noted that grocery prices have climbed sharply since 2022, continuing to pressure household budgets.
Against that backdrop, many Millennials reported making substantial changes not only to shopping habits, but also to broader lifestyle spending.
Thirty-two percent of respondents said they are shifting toward more value-oriented retailers, while 28% reported replacing national brands with lower-priced alternatives and private label products.
Millennials are also reducing restaurant visits, canceling subscription services, consolidating errands to lower transportation costs, and relying more heavily on coupon apps, digital flyers, and sale-driven shopping habits.
Those patterns continue to benefit discount-oriented retailers and grocers across Canada.
Loblaw Companies Limited has continued investing in discount banners including No Frills and Maxi as consumers increasingly seek lower-priced grocery options. Discount retailers such as Dollarama have also benefited from shoppers searching for lower-cost household goods and everyday essentials.
The findings also point to growing acceptance of private label products, an area that major grocers and mass merchants have aggressively expanded in recent years as shoppers search for lower-cost alternatives without fully sacrificing quality.
Cooking At Home Is Becoming A Budget Strategy
The report found that Millennials are spending more time cooking at home as households look for ways to manage rising living costs.
Sixty-eight percent of respondents said they are preparing meals at home more frequently than they were a year ago, while 56% identified saving money as the primary reason.
Family priorities and health considerations also ranked highly among motivations for home cooking, with respondents citing meal planning, nutrition control, and reducing restaurant spending as major drivers behind changing routines.
The shift could benefit grocers, warehouse clubs, cookware retailers, meal planning services, and specialty food retailers while adding pressure to discretionary restaurant visits and takeout spending.
At the same time, the research suggests consumers are still allowing room in household budgets for smaller indulgences and products tied to comfort or enjoyment.
When asked why they purchase premium grocery products, 33% cited better quality or taste as the primary reason, while another 16% described premium purchases as small personal treats.
That behaviour helps explain why premium spending continues to persist in selective categories even as households become more cautious overall.
TikTok And Social Media Are Influencing Grocery Purchases
Digital platforms are also playing a growing role in shaping food and grocery purchases.
The study found that 78% of Millennial respondents had purchased a food product after seeing it featured in recipes, videos, or social media content.
Social media influencers ranked ahead of traditional digital advertising as a source of product discovery, reflecting how consumers increasingly move between online inspiration and physical shopping experiences.
Consumers also reported discovering products through in-store browsing, word of mouth, entertainment content, retailer apps, and digital media.
The findings reinforce how product discovery is increasingly shifting away from traditional advertising and toward algorithms, creators, TikTok trends, and social content that directly influence purchasing behaviour.
For retailers and consumer brands, maintaining visibility across multiple channels is becoming increasingly important as shoppers blend digital discovery with in-store purchasing decisions.
Retailers Are Facing A More Unpredictable Consumer
The study suggests Millennials no longer fit neatly into traditional categories such as discount shopper, premium shopper, or loyal brand customer.
Instead, consumers are increasingly blending discount, premium, private label, warehouse club, and specialty purchases depending on the category and perceived value of a product.
For retailers, that evolution is creating a more fragmented and less predictable consumer environment where shoppers are constantly reassessing priorities and retailers must increasingly compete purchase by purchase rather than relying on long-term loyalty or traditional assumptions about consumer behaviour.
