Higher bills and price wars in supermarkets. Grocery shopping in 2024 will obviously not be easy when a family of four could spend on average $313.40 per week for an annual amount of $16,297.20, an increase of $701.79 per week. compared to the total forecast for 2023.
Going to the supermarket will still generate additional expenses with an increase in food prices of up to 4.5% across the country, according to predictions contained in the 2024 Canadian Food Prices Report, released this Thursday.
Bread, vegetables and meat will essentially contribute to inflating the price of the grocery basket. They represent the food categories expected to see the largest price increase with an increase varying between 5% to 7%.
“This anticipated rise in food prices can be mainly attributed to increased input costs, increased transportation costs and adverse effects of climate change on crop yields,” the study reads carried out jointly by Dalhousie University, the University of British Columbia, the University of Guelph and the University of Saskatchewan.
In La Belle Province, where the anticipated increase will be lower than the Canadian average — with a price increase varying between 2.5% and 3.5% — the different brands risk engaging in a fierce price battle, believes Sylvain Charlebois, Senior Director of the Agri-Food Analytical Sciences Laboratory at Dalhousie University.
“If we go back to the 1980s when people didn’t buy anything if it wasn’t on sale, that’s a bit like what’s going to happen in 2024,” he adds. We see that grocers are preparing to fight the leader of deflation which is Walmart. »
The authors of the report also indicate that this “mild deflation” could translate into lower prices for many essential food products.
Over the past year, 6 out of 10 foods sold in grocery stores have been on promotion, revealed last week Francis Parisien, senior vice-president, SME sales Canada for NielsenIQ, during a conference entitled The consumer at the time of choice, presented as part of an event organized by the Conseil de la transformation agricole du Québec (CTAQ).
“A proportion of 57.7%, we have never seen that! We have never seen so much promotional activity,” he said at the time.
Fun Fact: While prices rose this year, consumers spent less at the grocery store than experts predicted. “Based on the 2023 forecast and data from last year’s report, a family’s total annual spending…was originally projected to be $16,288.40, based on this what we considered a healthy diet, they wrote. However, this year, given the reduced spending habits of Canadians, a more accurate estimate of a family of four’s annual spending over the past year is $15,595.40. In other words, households spent $693 less due to changes in their purchasing habits, despite rising food prices. »
What happened ? Have consumers deprived themselves by walking the grocery aisles? Not necessarily, replies Mr. Charlebois. “Either people waste less, or they find other supply channels,” he says, recalling that a large number of Canadians have resorted to food banks to supplement their groceries.