Amid the current environment of mixed economic sentiment, Pearl asked Canadians how they are planning to spend their money.
Over one-third of Canadians plan to cut back on discretionary spending in the next month, particularly across food and beverage categories – alcohol (36%), salty snacks (14%), confectionery (18%) and food takeout & delivery (28%).
Dining and entertainment away from home will also be negatively impacted, as nearly half of Canadians (46%) expect to spend less on activities such as movies, concerts, and live events. About one-quarter will reduce spending on dining out at quick-service restaurants (22%) and full-service restaurants (30%).
In response to cost pressures, Canadians plan to consume more at-home with increases in groceries (27%), entertainment at home (6%) and household supplies (6%).
Gen Z (18–27) stands out as the only generation planning to increase spending across multiple categories, including household supplies (21%), fitness & wellness (17%), personal care products (15%), entertainment at home (14%), and skincare & makeup (13%).
Gen X is the most cautious when it comes to dining out, with 48% indicating they will spend less on full-service restaurants and 43% for QSR – the highest declines among all generations.
What It Means for Brands: Understanding shifts in spending behaviours is an opportunity for businesses adapt their product mix and messaging to align with the evolving priorities of consumer:
- Engage Gen Z’s willingness to spend against their need for experiences, personal care, and lifestyle products. Prioritize this generation to drive volume growth.
- Adapt to Millennial & Gen X Cost-Consciousness by offering a range of price tiers and communicating a sharp value proposition. Appeal to their need to be savvy shoppers by promoting product versatility and alternate uses to increase perceived value.
- Communicate Distinction by amplifying unique benefits that shine a light on the pain points of lower cost substitutes. For example, the trade-off of cooking a meal at home to save money, may be the reduction in quality time with family and friends that you could have experienced at a full-service restaurant.
Want to dive deeper into these insights to build your brand? Connect with us at Pearl Strategy (johnchan@pearl-strategy.ca) to learn how we can help your brand respond to today’s economic challenges with empathy and impact.
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Source: Pearl Study of Canadians’ Attitudes & Behaviours, Dec 2024, n=267
