That’s a Wrap: Analyzing the 2023 Canada Food Price Report

By Laetitia Satam, Kathleena Henricus, and Shivani Shukla

Perhaps most explicitly seen in increases in food bank usage due to food insecurity, it is clear that Canadians have been feeling the burn of rising grocery store prices. The 2024 Canada’s Food Price Report breaks down the kind of burden Canadians faced in 2023 and what is expected regarding food for 2024. This report is a cross-country collaboration between Dalhousie University, the University of Guelph, the University of Saskatchewan, and the University of British Columbia. Amidst many consumer reports, the 2024 Canada Food Price Report was highly anticipated, highlighting spending trends, poor mental health, and high food rates.

The report highlighted that, despite inflation, Canadians spent significantly less on food in 2023. Reducing the amount of money spent on food can be done in two ways: reducing the quantity of food bought or reducing the quality of what is purchased. Overarchingly, this means that Canadians were less well-nourished. One of the many possible reasons for this lack of spending could be financial difficulties, such as the 4.2% increase in household debt during the past year. This rise in debt helps explain why, in 2023, there were almost 2 million visits to food banks, which is a 32% increase since March 2022 and a whopping 78.5% increase from March 2019.

No doubt, prevailing food insecurity in Canada has hurt mental health. A study by the University of Toronto found that Canadians in food-insecure households are at a greater risk of declining mental health and that the consequences of food insecurity can have an even more significant toll on the healthcare system. For example, 1 in 8 households in Ontario is food insecure, but food insecure households account for more than 1 in 3 hospitalizations due to mental health crises. Children being raised in food-insecure homes are more likely to suffer from hyperactivity, inattention, and adverse impacts on their mental health, such as more significant risks of depression and suicidal ideation (2018). When looking at these findings, it is clear that Canadians need food support and that food insecurity needs to be addressed more seriously.

While households are struggling, the 2023 Canada Food Price Report also found that “[g]rocers continued to profit and excessively exploit the ongoing inflationary trends” and that almost a third (30.3%) of Canadians believe price-gouging is the reason for inflated grocery prices. What Canadians believe may not be wrong; for example, the Canada Bread Company pleaded guilty to 4 counts of price-fixing under the Competition Act. Price fixing is an illegal practice and occurs when competitors agree not to change the price of a good since it leads to a higher price being maintained even when the market can accommodate a lower price. Choosing not to offer products at lower and more competitive prices drives Canadian food insecurity and makes it consistently harder to access proper and healthy nourishment.

While the past year's trends are disheartening, there is some reason for Canadians to be optimistic about market changes in 2024. 2024, the Canada Food Price Report expects a deflationary trend, especially for essential goods. For exact breakdowns of different grocery products, it was found that the total anticipated increase in food prices ranges from 2.5 - 4.5%, with bakery, meat, and vegetables seeing the most significant price increase, ranging from 5-7%. Hopefully, a deflationary trend will help decrease food prices and bring more Canadians out of food insecurity, which can positively impact their mental health.

We have some great tips and tricks if you are looking for solutions to help cut down on your grocery bill or meal plan on a budget! Some things to remember are affordable swaps; frozen and even canned produce can be cheaper than fresh produce, last longer, and frozen produce is nutritionally equivalent to fresh produce. Canned produce may lead to losing some heat-sensitive vitamins like vitamin C, but they are still healthy options to incorporate into your diet! It can also be worthwhile to buy the no-name brands instead of brand-name foods, especially when the quality and taste are not distinguishable. Another great, sustainable idea to cut down on food waste is only to buy what you need. Try planning your meals for the week before your grocery run to ensure you are not buying anything that will ultimately have to be thrown out. Furthermore, if you ever see a fantastic deal, do not be afraid to buy in bulk and freeze the excess! Just read up on safely freezing your food for the best quality. Different grocery stores may also have different deals; if you have the time, try to shop around or check out which weekly deals different grocery stores offer. As an individual, you can impact your life and budget in many ways!

However, we must acknowledge that the burden of increasing food prices is falling on consumers and remain vocal that it does not need to be this way. This is an issue affecting Canadians from coast to coast to coast. As part of community-based advocacy efforts, we urge you to contact your local MPs and policymakers to voice your concerns and ask what policy work is being done to reduce food insecurity in Canada. You can call, email, send letters, and even organize with a group of people to bring these issues forward. Putting pressure on policymakers to act now can show how important this issue is to Canadians and that action needs to be taken immediately.

People and families need to be able to access proper food and nourishment, as adequate nutrition is one of the critical factors in maintaining a healthy lifestyle and being able to function correctly depends in large part on food and food quality. The 2024 Canada Food Price Report outlined many food-related factors, highlighting some essential information and causes for concern. In 2023, Canadians saw many hardships concerning food, such as high rates of food insecurity that resulted in a lack of well-nourishment and a decline in mental health within families, affecting children who are an especially vulnerable population. Increases in food bank usage, resulting from price fixing and other factors, also caused more strained access to food in 2023. Things seem to be looking up in 2024 regarding high prices, which can hopefully help with many of the difficulties faced in 2023. Reports like the Canada Food Price Report help spread awareness and knowledge concerning food and showcase the importance of supporting nonprofits and food banks battling food insecurity. In 2024, we must work towards building healthier communities, ensuring everyone gets the nourishment and support they deserve.