Putting It All On The Table

An exploration of food consumption trends in Canada

As the world continues to evolve, so do our eating habits. A surge of new trends--from shrinking household sizes, to a focus on convenience and wellness, to widespread access to information--are impacting who we eat with, what we consume, when and where we eat, and of course, why we eat what we do.

With all of this flux, it's important to be able to anticipate how such forces will reshape the marketplace. After all, we know that complacency can be disastrous; history is strewn with examples of companies that missed important trends; think Kodak In 1999, Kodak's stock price hit an all-time high, but was relegated to filing Chapter 11 bankruptcy protection the following year. Why? After the brand failed to switch gears into digital, it quickly lost its cachet. On the flip side, there are companies that refuse to sit on success. They have a continual and unrelenting mandate to evaluate external forces, and grab onto shifting consumer needs to catalyze future growth and kick-start innovation. Clearly, it is important for companies to challenge the relevance of their core services and consider the requirement for innovation. Simply put, this is why trends matter.. So, what does the new Canadian food landscape look like? And what do Canadians want in the food and drinks they consume?

To answer this, we drew on data from Ipsos' FIVE study and Ipsos' Foodservice monitor-- syndicated studies fielded to a panel of more than 200,000 Canadian individuals that captures eating and drinking behaviour for the average day. From these resources, five key points rose to the top:

#1 A new structure of eating has emerged

There's no doubt that the structure of eating is shifting in Canada. However, the degree to which this is occurring is quite dramatic. Today, less focus is put on traditional meals like breakfast, lunch and dinner, and instead, consumers are opting to snack more throughout the day. In fact, a whopping two-thirds of consumption occasions throughout the day occur at snack. The impact of this shifting behaviour is not only evolving how we define a snack but it is also transforming how we eat at traditional meal occasions.

#2 Real, authentic foods lead the pack

The fresh factor is firmly engrained in the eating habits of Canadians. In fact, Canadians eat fresh fruit 544 times per year.

However, evaluations of products go beyond whether it's fresh. More and more consumers are paying attention to a product's provenance. `Made in Canada' is the top table claim reported among Canadians, and there has been a rise in the consumption of food identified as locally sourced and locally grown. In a similar vein, organic food consumption (though still representing only 5% of food items consumed) is mostly eaten in the morning at breakfast and as a morning snack.

A&W, which has developed a campaign around the quality of its products, has also seen significant growth in its share of eaters.

#3 Menu innovation in foodservice is critical for success

While foodservice in Canada remains flat, there are some areas that are growing more than others. For example, when looking at share of eaters, we see significant share shifts between key operators on a month-by-month basis. One source of these share shifts are driven by the entry of new brands in Canada such as Panera Bread, Five Guys and Chipotle, who have found success by bringing new menu items and foodservice experiences to Canada. These new competitors are really raising the bar in terms of consumer expectations. Another source is menu innovation among the incumbents. Successful menu items can drive occasion share changes by 2-3% which in a flat industry can translate into significant dollars.

#4 Opportunities exist for those who look carefully enough: YEMMies

There is no one-size-fits-all strategy when it comes to food and beverages. That's why it's important to look at data specific to demographics. An example of such an opportunity is among YEMMies: Young Educated Millennial Mothers. This cohort could explode to four million mothers in Canada alone over the next ten years. No doubt, they are an impactful force with an enormous amount of influence and buying power.

When looking at trends driving decisions about what to eat and drink among this group, we see that that YEMMiesopt for solutions that are more often all natural, portable and convenient.. YEMMies arealso embracing smaller meals. Given that theyhave been raised in an information culture promoting the benefits of the little and often approach, it's not surprising that YEMMies embrace both snacking and the mini-meal culture.

Wrapping up

As a whole, the food industry in Canada is very competitive, but there are many opportunities for growth. Taking the time to understand major trends and developing a structured innovation process to handle the changes should be a paramount concern for professionals in the food industry.The brands that continue to innovate and anticipate such changes will no doubt best appeal to the tastes of the Canadian consumer.