Why Grocery Bills Are Rising: Climate, Supply Chains, and the Economy
Canada’s Food Price Report 2025 forecasts a significant rise in food costs, with an average family of four expected to spend up to $16,833.67 annually on groceries, marking an increase of $801.56 compared to the previous year. The report, produced collaboratively by Dalhousie University, University of Guelph, University of Saskatchewan, and the University of British Columbia, predicts an overall price increase of three to five percent.
The study highlights that meat will see the sharpest price increases, rising by 4–6%, followed by vegetables and restaurant meals at 3–5%. Bakery and dairy items are projected to rise by 2–4%, while fruit and seafood will experience a modest increase of 1–3%. Beef prices, which rose by 9.2% from 2023 to 2024, are expected to remain high due to reduced herd sizes caused by drought and limited forage production.
Rising costs will prompt Canadians to make strategic adjustments to their food purchasing habits. Roughly 47.3% of consumers already prioritize affordability when choosing food, with many turning to sales, discounts, and loyalty programs to manage expenses. Traditional cost-saving methods, such as minimizing food waste and careful meal planning, are becoming increasingly critical.
The report also notes regional disparities, with Quebec and the Maritimes likely to experience above-average food inflation rates. Northern communities will continue to face disproportionately high costs and food insecurity due to logistical challenges and economic conditions.
Experts suggest that rising food prices are part of a broader affordability crisis, with many Canadians forced to compromise on nutritional value in favor of affordability. Generation Z is particularly affected, with nearly half relying on savings or borrowing to meet food expenses.
As Canadians adapt to these challenges, the report emphasizes the importance of sustainable and strategic practices to mitigate the impact of rising prices. Collaborative efforts to address food insecurity and enhance affordability will be crucial in the coming year.