With food prices continuing to rise at an accelerated rate globally, new research from Mintel revealed that Canadian consumers firmly place the blame on food retailers and producers.
Eighty-three percent of Canadian grocery shoppers said grocers and food producers are using inflation as an excuse to price gouge. This comes as Canadians are feeling the pinch, with nearly three in five (59 percent) shoppers more likely to watch how much they spend on groceries during this period of inflation.
Food inflation is impacting both consumers’ financial and mental well-being. Three-quarters of shoppers (73 percent) have said that food inflation is causing them additional stress, highlighting the need for grocery stores and food manufacturers to address this concern.
Furthermore, the emotional hardship Canadians feel relates not only to themselves but also to others. Almost all Canadian consumers (94 percent) agree the steep rise in food costs was particularly unfair to those with lower incomes. The increase in food prices had also negatively impacted Canadian consumers' ability to eat well.
Mintel research showed Three-quarters (74 percent) say that they plan more of their meals ahead of time not to buy unnecessary ingredients, and over half (54 percent) claimed they make shopping lists to help them save on groceries. Meanwhile, two-thirds of Canadians (68 percent) claim they are cutting back on the food and drinks they buy to lower their grocery bills.
The extent of distress that rising costs are causing consumers was illustrated by the fact that most Canadians (76 percent) feel ‘trapped’ because of a lack of input or control of how prices have inflated, with consumers forced to absorb inflation.
Joel Gregoire, Director of Food and Drink, Mintel Reports Canada, said that shoppers’ minds, retailers and food producers are leveraging the challenges they are facing to their benefit, giving rise to the term ‘greedflation’.
“Addressing food inflation extends beyond just rising prices but also connecting compassionately with consumers and understanding that many face financial hardships.”
He continued that while food inflation was unlikely to persist at these levels, grocers and food producers needed to recognise its damage to the industry’s standing.
“Brands that can convey how they are taking steps to be transparent and ‘be on the side of consumers’ when it comes to saving money can bolster the brand’s perception both in the short term and beyond.”
