Toronto – May 27, 2022 – The latest report from Kevin Grier Market Analysis and Consulting suggests the Canadian food industry continues to struggle with high prices and lower returns across the grocery sector.
The report points to sustained revenue losses across Canadian supermarkets, totaling a 2.8 percent decline year-over-year as inflation skyrocketed to 8.7 percent in food from stores. Prices on packaged foods have seen the largest increase at 9.2 percent, while costs on manufactured food and animal-based materials have risen by 18 percent year-over-year.
Demand is continuing to wane as a result of price pressures on consumers, which could be a sign of a looming recession. The Bank of Canada has initiated its Quantitative Tightening Policy to reign in prices, but time will tell if the policy can prevent the inevitable.
The bright spot in the food industry continues to be the resilience of the food service sector, which has seen revenues grow by upwards of 40 percent since February and 32 percent year-over-year.