Macro Food Trends Shaping the Canadian Foodservice Industry
Population shifts, increased consumer consciousness, and rising prices are all greatly impacting the Canadian foodservice industry in 2024.
Macro Forces: The Latest Food Trends Impact Canadian Consumer Behaviour
Population shifts, rising prices, and consumer consciousness towards diet and sustainability greatly influence how Canadians engage with food and beverage outside of their homes. These forces shape consumer behaviour in the Canadian foodservice industry, impacting their choices and preferences.
However, despite the challenges posed by these forces, the foodservice sector is rebounding, with both dollar expenditure and traffic experiencing growth compared to the previous year¹. In 2023, foodservice dollars increased by 19% and traffic by 12% compared to 20221. This highlights the industry's resilience and adaptability in response to these impactful forces.
Population Shifts
The changing demographics of Canada have a significant influence on the demand for food and beverages consumed outside the home. Currently, 38% of Canadians are living in 1-2 person households. This shift in household size has implications for the foodservice industry, as the needs and wants of consumers change accordingly.
Additionally, millennials have surpassed boomers as the largest adult generation, and multicultural population growth is on the rise. These population shifts further contribute to the evolving landscape of the foodservice industry.1
What does this mean for foodservice establishments in Canada? It signals a drastic change on food and beverage demand in the out-of-home industry. Diverse cultural backgrounds, and the shifts in the adult generation and family sizes must be taken into consideration when creating new menus and promotions.
Rising Consciousness and Dietary Restrictions
Consumer consciousness and dietary restrictions are playing an increasingly significant role in shaping the food and beverage choices of Canadian consumers. There has been a 12.7% increase in individuals who strongly believe that environmental reasons should guide their consumption decisions1. Factors such as locally sourced ingredients, fair trade, packaging, and waste reduction will all play a bigger part in the decision-making process for Canadians consuming food and beverage out-of-home.
What's more, rising consciousness is also visible on the change in consumer behaviour when it comes to dietary restrictions. 51% of Canadians are actively trying to exclude sugar from their diets, 36-37% are reducing their consumption of processed foods and trans fats, and a significant 27% of adults follow unique dietary regimes1. These all signal the importance of ingredient choices on beverage, food, and dessert menus. To cater to the diverse needs of consumers, foodservice operators should consider offering a variety of dietary options, such as vegetarian, vegan, low-sugar, and gluten-free. By doing so, they can attract and retain customers who prioritize their dietary preferences.
Rising Prices
Inflation and rising prices are key factors in how Canadians consume food and beverages outside the home. A staggering 77% of Canadian citizens believe that inflation risk personally impacts them1. As a result, consumers are actively seeking ways to save money and are uncertain about their economic future. They desire a return to "normal pre-pandemic" consumption in foodservice, with a focus on affordability.
To meet these expectations, foodservice operators should strive to offer cost-effective options without compromising quality. By providing affordable choices, businesses can attract and retain customers who are looking for value without sacrificing taste or experience.
Operator Tip: Bring labour value to the kitchen with food and beverage products that can help your staff cut-down on prep time to allow them to focus on what really matters.
1. 2024 Ipsos.® FSM FOODSERVICE MONITOR | SYNDICATED
The information presented here offers a general industry perspective and may not directly apply to your specific business operations. Consult with the appropriate subject matter experts before making any business decisions.
