Consumer Lifestyles in Canada PDF

CONSUMER LIFESTYLES IN
CANADA
Euromonitor International
June 2017
CONSUMER LIFESTYLES IN CANADA Passport I
LIST OF CONTENTS AND TABLES

Lifestyles in Canada ..................................................................................................................... 1
Chart 1 Consumer Lifestyles in 2017 ........................................................................ 1
Top Five Consumer Trends .......................................................................................................... 1
Consumer Spending Expected To Continue To Grow, Albeit Slowly ........................................ 1
Consumers Increasingly Going Online To Shop ....................................................................... 2
High Prices Making It Difficult for Millennials To Get on Property Ladder ................................. 2
Newly Arrived Immigrants Influencing Consumer Behaviour .................................................... 3
Growing Number of Later-lifers Change Spending Habits ........................................................ 3
Consumer Segmentation .............................................................................................................. 4
Babies and Infants .................................................................................................................... 4
Chart 2 Number of Babies and Infants (Aged 0-2) and Average Age at
Childbirth ...................................................................................................... 4
Kids........................................................................................................................................... 5
Chart 3 Number of Kids (Aged 3-8)........................................................................... 6
Tweens ..................................................................................................................................... 6
Chart 4 Number of Tweens (Aged 9-12) ................................................................... 7
Teens........................................................................................................................................ 8
Chart 5 Number of Teens (Aged 13-17) .................................................................... 9
Young Adults ............................................................................................................................ 9
Chart 6 Distribution of Young Adults (Aged 18-29) and Age at First Marriage ........ 10
Middle Youth ........................................................................................................................... 10
Chart 7 Number of Middle Youth (Aged 30-44) ....................................................... 11
Mid-lifers ................................................................................................................................. 12
Chart 8 Number of Mid-Lifers (Aged 45-59) ............................................................ 12
Later-lifers ............................................................................................................................... 13
Chart 9 Number of Later-Lifers (Aged 60+) and Life Expectancy ........................... 14
House and Home ....................................................................................................................... 15
the Home Space ..................................................................................................................... 15
Chart 10 Overview of Households: 2016 .................................................................. 16
Chart 11 Households by Type, Occupants, and Pet Ownership ............................... 17
Running Costs ........................................................................................................................ 17
Chart 12 Running Costs per Household: 2016 ......................................................... 18
Spending and Saving ................................................................................................................. 18
Attitudes Towards Spending ................................................................................................... 18
Attitudes Towards Savings ..................................................................................................... 20
Chart 13 Key Spending and Savings Measures: 2016.............................................. 20
Shopping .................................................................................................................................... 21
Main Household Shop ............................................................................................................ 21
Chart 14 Main Household Shop by Retailer Type: 2016 ........................................... 23
Shopping for Big-ticket Items .................................................................................................. 23
CONSUMER LIFESTYLES IN CANADA Passport II
Shopping Online ..................................................................................................................... 24

Chart 15 Internet Retail Spending: 2016 ................................................................... 25
Eating and Drinking .................................................................................................................... 25
Eating Habits .......................................................................................................................... 25
Chart 16 Consumer Spending on Food and Non-Alcoholic Drinks: 2016 ................. 26
Drinking Habits ....................................................................................................................... 27
Chart 17 Consumer Spending on Beer, Wines and Spirits: 2016 ............................. 28
Grooming and Appearance ........................................................................................................ 28
Investing in Yourself: Female Personal Grooming and Hygiene ............................................. 29
Chart 18 Consumer Expenditure on Personal Appearance: 2016 ............................ 29
Investing in Yourself: Male Personal Grooming and Hygiene ................................................. 30
Style Icons and Celebrity Influences ....................................................................................... 30
Healthy and Ethical Living .......................................................................................................... 31
Attitudes To Health and Wellbeing.......................................................................................... 31
Chart 19 Consumer Expenditure on Personal Health: 2016 ..................................... 31
Ethical Living .......................................................................................................................... 32
Chart 20 Obese and Overweight Population by Gender: 2000-2016 ........................ 33
Sport and Fitness.................................................................................................................... 33
Chart 21 Percentage of Households Owning a Bicycle: 2016 ................................... 34
Leisure and Recreation .............................................................................................................. 34
Leisure Time ........................................................................................................................... 34
Chart 22 Accessing the Internet: 2016 ...................................................................... 35
Vacations ................................................................................................................................ 35
Chart 23 Holiday Time: 2016 .................................................................................... 36
Opportunities for Celebrations and Gift-giving ........................................................................ 36
CONSUMER LIFESTYLES IN CANADA Passport 1
CONSUMER LIFESTYLES IN CANADA

LIFESTYLES IN CANADA
Chart 1 Consumer Lifestyles in 2017
Source: Euromonitor International
TOP FIVE CONSUMER TRENDS
Consumer Spending Expected To Continue To Grow, Albeit Slowly

Despite recent economic and job uncertainty brought about by the decline in oil prices, in
2016 consumer expenditure reached CAD80,154 per household, reflecting steady growth of
5.2% (in real terms) since 2011. At the same time, spending has been bolstered by high levels
of borrowing, with the outstanding balance of consumer credit reaching CAD37,400 per
household in 2016.
Burgeoning consumer confidence, at least in the shorter term, is based in large part on the
recent improving job market. According to recent data from The Conference Board of Canada,
consumers appear confident that jobs will remain plentiful, spurring continued spending, at least
in some provinces. On the other hand, in a separate report the group said it believes that
growing levels of household debt will slow spending growth.
Regardless, rising inflation is expected to boost current spending levels. A recent article on
website globalnews.ca noted The doubling of inflation is expected to boost the cost of living this
year. Conference Board of Canada chief economist Craig Alexander said in a blog post that
inflation could hit two per cent [in 2017], boosting annual expenditures for the average Canadian
household by CAD1,600. The article went on to identify likely areas where prices could rise.
These included prices of fuel and energy, food, healthcare and education. In addition, the article
noted that mortgage rates are likely to increase.
Consumers Increasingly Going Online To Shop

Consumers continue to embrace internet retailing, reflected by internet retailing per capita
spending increasing by 17% between 2015 and 2016, reaching CAD661 in 2016. In addition,
consumers, particularly younger consumers, are increasingly turning to their smartphones and
other mobile devices when shopping online. In 2016 value sales of mobile internet retailing
reached CAD174 per capita, up from CAD36 per capita in 2012.
According to PwCs Total Retail 2016 report, 46% of online shoppers said convenience is
their main reason for shopping online, followed by lower prices, cited by 37%. Canadian
consumers shopping habits are also influenced by social media. Thirty-eight percent said they
were influenced by reading reviews, comments and feedback on social media platforms and
22% said they were influenced by advertisements. On the other hand, only 6% of online
shoppers said that purchasing directly via a social media platform was a part of their shopping
behaviour. Products consumers purchase online most often are books, music, movies and video
games (52%), consumer electronics and computers (28%) and clothing and footwear (23%).
Shoppers also research products online with their mobile devices before buying them in brick-
and-mortar stores, with many doing their price and product research while theyre in the stores.
The survey revealed that the top product consumers research in-store are grocery items (51%),
furniture and homewares (38%) and clothing and footwear (36%).
While domestic retailers have traditionally lagged behind US retailers in establishing their
internet presence, in coming years growth in online shopping is expected to be driven in large
part by the improved internet presence of those same domestic retailers. According to a recent
study by PayPal, Shopping local is now officially in vogue. The research reveals that this trend
is driven by a multitude of factors with more than half (56%) of Canadians revealing that they
plan to shop online from Canadian retailers because they want to support local businesses and
the economy. Canadians are also choosing to shop online from domestic retailers because they
want to avoid the cost of international shipping, taxes and duties (51%), unfavourable exchange
rates (44%) and many (32%) prefer goods that are made in Canada.
High Prices Making It Difficult for Millennials To Get on Property Ladder

As a result of a strong and continuing increase in house prices in recent years, many
prospective young home buyers are being shut out of the housing market. In a report on website
globalnews.ca Glen Melnyk, financial consultant at Investors Group, observed It looks like it
was a little bit easier to buy a house 25 years ago. Even though interest rates were higher,
house prices were lower.
Rick Jansen, a real estate agent working in Winnipeg, said Theres no hiding the fact that
home prices have gone up. And it seems almost every year we are setting new high-water
mark. As a result, according to the article, prospective first-time Millennial home buyers are
being forced to spend 25% of their monthly income on household debt compared to the 15%
their parents paid. Jansen added In terms of finding employment, the payment theyre getting
and the costs theyre having to face dont match up. So its not a millennial slacking issue which
were so used to talking about.
In addition, new, more stringent rules on mortgage qualification are expected to hit first-time
buyers particularly hard. Edmonton-based broker Jason Scott recently observed on website
moneysense.ca People who have less than 20% down are going to qualify for a whole lot less
money...Youre not paying more, but youre going to be able to buy less house. Frank
Napolitano, managing partner at Mortgage Brokers Ottawa, said Canadas first-time home
buyers may have to shelve their dream house fantasies...First-time homebuyers will probably
have to probably scale down the type of home that they may have planned to buy. Needless to
say, fewer first-time buyers is expected to have an impact on demand for a wide range of
household-related items that new home buyers tend to purchase, such as appliances and
homewares.
Newly Arrived Immigrants Influencing Consumer Behaviour

The population of Canada is perhaps the most diverse among modern Western countries and
that trend is projected to continue in coming years as more South Asian, Chinese, Filipino and
Middle Eastern immigrants, among many others, come to the country. Increasingly, the wave of
immigrants is influencing Canadas consumer profile and shopping habits. In particular, the
trend is affecting food shopping. According to Mike Fromowitz, Chief Creative Officer, Ethnicity
Multicultural Marketing + Advertising Inc., Multicultural consumers are transforming the
Canadian mainstream.... They are also influencing the food shopping habits of the overall
population. Shopping behaviours across multicultural shoppers reveals one important
commonalitythey are particularly influential in fresh groceries (the meat, produce, deli, bakery
and seafood departments).
New immigrants to Canada tend to wield considerable spending power and this has bolstered
their impact on consumer habits. According to a recent report from eMarketer, Not only do
recent immigrants represent a new and consistently growing consumer base, they are also
arriving in better financial position than previous generations, reflecting the current skew in
Canadas immigration policy toward admitting skilled professionals.
In addition, newly arrived immigrants tend to settle in the larger cities, such as Toronto,
Vancouver and Montral and many immediately seek to buy homes and, according to a recent
study by the University of British Columbia, their spending power has had a significant impact on
rising housing prices. The studys author, Daniel Heibert, told the Vancouver Sun that he
believes that immigrants are seriously affecting housing affordability at both the high and low
ends of the market. He noted that in metro Vancouver the overall rate of home ownership
among all residents in Metro Vancouver is nearly 70% but The percentage of home ownership
among Chinese is 81%. And South Asians are second at 75%.
Growing Number of Later-lifers Change Spending Habits

Those aged 60 years-old and older constitute the fastest-growing consumer segment in
Canada. In 2016 Later-Lifers accounted for 23% of the population and by 2030 they will account
nearly 29% of the total population. This demographic shift is expected to change the overall
consumer profile, as older consumers tend to spend less. Indeed, according to a recent article in
the Financial Post on a survey by Sun Life Financial Canada, retirees are living on 62% of what
they previously earned and that 32% said they were surprised at how they were able to
manage on a reduced budget. In addition, the growing number of older Canadians is expected
to drive increased demand for a wide range of age-specific products and services, particularly
health-related products and services. They will also drive increased demand for smaller living
quarters as they seek to save money by downsizing their homes.
On the other hand, according to the results of a recent study from credit firm Equifax reported
on website cbc.ca, Later-Lifers are accumulating debtnot including mortgage debtat a faster
pace than other age segments. Regina Malina, a senior director of insights at the credit firm,
said Seniors of today are behaving slightly different than the seniors of yesterday," she said,
adding that she suspects a lot of that consumer debt stems from having to help adult children or
other family members with their own financial hardships. The study also revealed that across
all age groups, the fastest-growing source of new debt was instalment and car loans.
CONSUMER SEGMENTATION
Babies and Infants

The number of Babies and Infants increased by nearly 3% between 2011 and 2016, a result
of low birth rates. Between 2016 and 2030 the number is projected to grow slightly, by 3.3% to
reach 1.2 million, accounting for nearly 3% of the total population in 2030. According to Nora
Spinks, CEO of the Vanier Institute of the Family, smaller families are progressively becoming
the norm, with more women choosing to delay childbirth due to their greater participation in the
workforce. She said One of the major reasons people are having fewer children is a
combination of circumstances and biology. The longer you delay having the first, the shorter the
window you have to have more. The high costs of bringing up children along with uncertainties
in the economy have also had an impact on decisions by parents to have children.
One in four babies overweight or obese

Twenty-five percent of toddlers in Canada are either overweight or obese, according to the
results of a study published in 2016 by Queens University. A reliance on pre-packaged baby
food is said to be one of the reasons behind the high proportion of overweight Babies and
Infants. Dr. Mark Tremblay, director of the healthy active living and obesity research group
Childrens Hospital of Eastern Ontario (CHEO), said I think were seeing a deterioration in our
lifestyles and its sort of stacking that cards to a small degree against that new-born baby.
Because of this biological transference from mom and dad, because of the way we behave and
the processed things that we give to (babies) in increasing proportions those are all setting
them off on a trajectory that may be worse.
Growing demand for organic baby food, especially among Millennial moms
Canadian parents, particularly Millennials, are increasingly shifting their preference from
traditional baby food to what they consider healthier baby food, including organic offerings. The
growing demand aligns with the overall consumer demand for healthy and natural foods,
particularly in light of the clean label movement, with consumers becoming increasingly wary of
artificial ingredients such as colours and flavours.
Dana McCauley, food trend watcher, and executive director of Food Starter, says, Organics
remain a strong category, especially with Millennial moms, who want to give their kids a strong
start in the world. Most research shows that from the day she is aware of her pregnancy, many
young women start eating organic and that they continue until the baby becomes fairly
independent.
Chart 2 Number of Babies and Infants (Aged 0-2) and Average Age at Childbirth
Source: Euromonitor International from national statistics/UN

Note: Data for 2017-2030 are forecasts
Kids
Between 2011 and 2016 the number of Kids (aged three to eight years-old) increased by
7.1%, reaching nearly 2.4 million and accounting for 6.5% of the total population. As with the
Babies and Infants segment, the Kids segment is also experiencing relatively slow growth, a
result of the low birth rate and the trend towards limited child-bearing. On the other hand,
between 2016 and 2030 the number of Kids is projected to increase by 7.2%, reaching 2.5
million in 2030 and accounting for 6.2% of the total population.
The average age at which Kids get their own mobile phones is declining. According to a 2015
report by non-profit group MediaSmart, nearly 25% of children in Grade 4 and more than 50% of
children in Grade 7 had their own phones. Matthew Johnson, director of education at
MediaSmart, commented We're seeing higher and higher adoption of mobile devices by
younger and younger kids...There's the fear of missing out on something or that other kids are
talking about them when they're offline. We actually found, of the young people in our study with
cellphones, more than one-third were sleeping with the cellphones, specifically so they could
check in the night and didn't go too long without checking up on what their friends were doing.
Twenty percent of Kids with phones in Grade 4 had a social network account on a platform such
as Facebook, Twitter or Snapchat despite these sites having age restrictions.
Childhood obesity rates are declining for the first time in years, according to a University of
Manitoba study published in 2016 in the Canadian Medical Association Journal. Results of the
study revealed that the obesity rate increased from 23.3% in 1978 to 34.7% in 2004, before
declining to 27% in 2013. Dr. Atul Sharma, of the Childrens Hospital Research Institute of
Manitoba, said Canadian children are still heavier than World Health Organization (WHO)
norms both their weight and BMI are higher than the average, but they are doing better than
our US counterparts and over the last 10 years, their rates of obesity are declining.
Back-to-school shopping still determined by price

According to a recent survey by retailmenot.ca, parents said they expected to spend an
average CAD461 on back-to-school shopping in 2016, up by CAD132 from prior year, with the
bulk of shopping occurring close to the Labour Day weekend. According to Felicia Fefer,
Walmart Canada marketing and public relations manager, The bulk of back-to-school shopping
will take place in-store, while adding that there has also been a significant growth in online
orders and orders via mobile apps. The survey also revealed that 80% said they were planning
to buy clothing, while 75% said they were planning to buy footwear. Price was cited as the most
important consideration for shoppers.
Canadian Kids amongst least active globally

Only 9% of young Canadians aged five to 17 years-old were involved in at least one hour of
heart-pumping activity per day, according to the 2016 ParticipACTION Report Card on Physical
Activity for Children and Youth. Furthermore, only 24% met the Canadian Sedentary Behaviour
Guideline of no more than two hours of daily recreational screen time. As a result, young
Canadians were given a D- grade for physical activity, along with those from other developed
countries such as Argentina, the UK, Spain and the US.
Carol Maxwell, who takes her grandson to physical activity classes at the YMCA, said
parents schedules are among the reasons behind the high level of screen time and low levels of
physical activity among Kids. Parents are so busy so they put the kids in front of the TV, she
said.
Chart 3 Number of Kids (Aged 3-8)

Note: Data for 2016-2030 are forecasts
Tweens
Between 2011 and 2016 the number of Tweens (aged nine to 12 years-old) increased by
3.1%, reaching 1.5 million and accounting for 4.2% of the total population in 2016. Between
2016 and 2030 the number of Tweens is projected to increase by nearly 15%, reaching nearly
1.8 million in 2030 and again accounting for 4.2% of the total population.
Tweens are at an age when they begin to broaden the scope of their personal habits and
attitudes, including having a greater interest in the clothing and fashion their peers wear, the
music they listen to and games they play. According to website justice.gc.ca, Significant social
and emotional growth gives pre-teens an increasing sense of independence. This feeling of
independence means they place greater importance on the world outside their family. They
have greater involvement in school, friendships and extra-curricular activities. Tweens are
increasingly adopting the preferences of Teens, tending to blur the line between the two
segments.
Many Tweens enjoy relatively high levels of disposable income derived from allowances given
to them by their parents, gifts of money or part-time work. As their parents provide food, shelter,
clothing and other essentials, most of Tweens money is spent on discretionary items. In
addition, Tweens often exert a strong influence on their parents when it comes to spending on
general household items.
Tweens are avid computer and internet users and their growing independence is reflected in
their choice of online activities. According to website parentscanada.com, Tweens are far more
social and adventuresome in their computer use. They talk to their peers at school and learn
about the newest and coolest sites. They will sign-up for their first email and instant messaging
accounts...Children at this age may also start to check out social networking sites that are
popular with older teens and adults. Most wont create an account until they are a little older
(and the usual legal age to begin is 13 years), but they will visit the pages and posts of friends,
older siblings, and other relatives who have their own pages and profiles. The report added
Tweens are also interested in music, and the internet is an easy way to listen, discover and
download new tunes, as well as meet others who share their musical interests. They might
follow news about a favourite group or celebrity by visiting their blog or website; check out
different sites to get the latest gossip along with downloadable photos; or join a Twitter feed.
Newly arrived Tweens face numerous challenges

Immigrant families arrive in Canada in great numbers and they often find, and typically soon
overcome, most challenges related to adapting to their new home. In particular, younger
immigrants find they must adapt to numerous new and unique circumstances. According to a
2011 report on website canadianimmigrant.ca which no doubt still rings true today, Whether
born in Canada or abroad, the children of immigrant families more often than not face intense
challenges due to the differences between their cultural background and the community into
which they are trying to integrate; all of this is piled on top of the normal growing pains of youth,
making for awkward and complicated situations.
The challenges faced by immigrant tweens can go beyond language and social customs.
Indeed, they can include recreational activities. Having moved to a country where water-related
activities abound, immigrants to Canada aged 11 to 14 years-old are five times more likely to be
unable to swim than their Canadian-born peers, according to a recent report by the Lifesaving
Society reported on website cbc.ca. Barbara Byers, public education director with the Lifesaving
Society told the website "They come from countries where there isn't a culture of learning to
swim...Many just have never had an opportunity at all. They may have lived in a land-locked
country with very little water. She added that "But what many don't realize is [swimming is] so
popular, it's so common here. You might say, 'We're not a swimming family.' But when your pre-
teen becomes 14 or 15, they're going to do things with their friends without their parents even
knowing about it, so it's so important in Canada to know how to swim, to have basic swimming
survival skills".
Chart 4 Number of Tweens (Aged 9-12)

Notes: (1) Data for 2017-2030 are forecasts
(2) This group includes the younger end of the population group Generation Z (born from 1995-2009)
Teens
Between 2011 and 2016 the number of Teens (aged 13 to 17 years-old) declined by 8.6%,
reaching 1.9 million and accounting for 5.3% of the total population in 2016. In contrast, the
number of Teens is projected to increase by 15.6% between 2016 and 2030, reaching 2.2
million and accounting for 5.4% of the total population on 2030.
According to the 2016 Transportation Tomorrow Survey, the proportion of 11- to 17-year-olds
who walked or rode a bike to school declined by nearly 13% between 1986 and 2011, while the
proportion of those who were driven to school more than doubled, from 14% to 33%.
YouTube is the most popular network among Teens, according to a 2017 survey by HRC
Retail Advisory. Fifty-four percent of those aged 10 to 17 years-old said they visited YouTube
daily, while 50% said they visited Facebook daily, followed by Instagram and Snapchat at 34%
and 29%, respectively.
The survey also revealed that 62% of respondents said that friends were the most influential
contributors to their purchasing decisions. This was followed by athletes (14%) and
bloggers/YouTubers (13%). On the other end of the spectrum, celebrity and singer
endorsements were deemed to be the least influential, cited by 6% and 7% of respondents,
respectively.
Teens increasingly shop online

Fifty percent of Teens shopped online at least once a month in 2016, according to study by
HRC Retail Advisory. Seventy-seven percent said they had made an online purchase on
Amazon, while 34% made a purchase on eBay. In addition, according to HRC Retail Advisory
President Farla Efros, Teens also have a profound influence on household spending.
Teens dropping out of sports

According to a 2016 study by Vital Signs and the True Sport Foundation, while 75% of
children and youth were active in sport, participation peaks between the ages 10 to 13 years-old
with rates declining dramatically once they reach their teens. An obsession among Teens with
being the best and a focus on winning is said to be one of the main reasons behind this trend. A
2016 report on cbc.ca noted Perhaps most troubling is that many kids are deciding to hang up
their cleats or sneakers or skates at a young age. By about age 13, many youngsters have
already stepped away from an active life style. And it can't simply be chalked up to laziness,
video games or kids these days. In fact, adults should get much of the blame. Most kids quit
because they think they're not good enough a by-product, experts say, of the hyper-
competitive environment that lords over most youth sports.
Chart 5 Number of Teens (Aged 13-17)

(2) This group includes the population group Generation Z (born from 1995-2009)
Young Adults
The number of Young Adults (aged 18 to 29 years-old) increased by 3.3% between 2011 and
2016, reaching 5.8 million in 2016 and accounting for 16% of the total population, making it the
fourth-largest consumer segment. Between 2016 and 2030, the number of Young Adults is
projected to decline by nearly 2%, reaching 5.7 million in 2030 and accounting for nearly 14% of
the total population.
More young Canadians are spending more time at school. The number of those pursuing a
university or college degree increased from less than one-half in 1990 to 75% in 2016,
according to Statistics Canada. The increase in higher education enrolment has led to greater
demand for education loans and, in turn, to an increase in the level of student debt which has
had an impact on Young Adult spending and boosted overall household debt. According to Bilan
Arte, National Chairperson of the Canadian Federation of Students, Saddling students,
graduates and their families with massive amounts of debt is slowing down the economy. Young
people are being forced to delay life milestones and saving for their families' future in order to
make payments on their student loans.
A 2017 survey by the Canadian Imperial Bank of Commerce revealed that nearly 85% of
Millennials consider home ownership a main priority. According to Barry Gollom, Vice President
of CIBC Mortgages and Lending, Our poll suggests that Millennials place as much importance
on being a home owner as Canadians in other age groups. Home ownership is an important
milestone to many, and that hasn't changed even though it has become increasingly difficult to
get into the market. Indeed, the difficulty of getting on to the property ladder was reflected in a
2017 study by HSBC, which revealed that Canadian Millennials were less likely to buy their own
home in comparison to Millennials in countries such as the US and China. This is largely
because of the increase in home prices and low wage growth in Canada, which has made home
ownership unaffordable for many young consumers.
Young Adults in Canada are increasingly aware and concerned about the impact of
environmental issues. A 2016 survey by the Canadian Broadcasting Corporation (CBC) and
EKOS Research revealed that more than 80% of those aged 18 to 35 years-old were concerned
about climate change. Ninety percent said that while they believed that the oil and gas industry
was important for the Canadian economy, only 60% believed that this would hold true in the
future, with many saying they hoped to see increased development of clean energy in Canada
in the coming years.
More Young Adults living with their parents

As more Canadians pursue further education, there has been an increase the number of
Young Adults living with their parents. Samantha Lussier, a 26-year-old who is studying
photography, recently told website cbc.ca I stayed to help myself through school and ease
some of that financial strain. In addition, according to Linda Schweitzer, Associate Professor at
Carleton University's Sprott School of Business, Young people today are spending more time in
school to get a leg up in the moribund job market, and that's having an impact on the numbers.
The report went on to note Marriage is often a major influence in when people move out, and
the numbers show that ritual is also being delayed. In 2016 the average age of men at first
marriage reached 33.3 years, up from 31.6 years in 2010, while the average age of women at
first marriage reached 31.2 years in 2016, up from 29.6 years in 2010.
Chart 6 Distribution of Young Adults (Aged 18-29) and Age at First Marriage

(2) This group includes older consumers in Generation Z (born from 1995-2009) and younger Millennials (born
from 1980-1994).
Middle Youth
The number of Middle Youth (aged 30 to 44 years-old) reached 7.3 million in 2016, reflecting
growth of 5% since 2011 and accounting for 20% of the total population in 2016. Between 2016
and 2030 the number of Middle Youth is projected to increase by nearly 11%, reaching 8.1
million in 2030 and accounting for nearly 20% of the total population.
Members of the Middle Youth cohort wield considerable purchasing power based on their
relatively high levels of income, with income levels increasing as they become older members of
the cohort. In 2016 the average annual gross income of those aged 30 to 34 years-old reached
CAD59,416, reflecting growth of 6.3% (in real terms) since 2011, while the average gross
income of those aged 40 to 44 years-old reached CAD69,331 in 2016, reflecting growth of 6.2%
since 2011.
Many Middle Youth have established their families and households and their spending is
focused on home- and child-related expenses. At the same time, having delayed marriage,
having children and buying a home, a large number of younger Middle Youth have just now
decided to settle down after an extended period of living single. Of course, many Middle Youth
still remain single and their spending is focused on personal rather than family-related products
and services.
Facebook is the most popular social media platform among Middle Youth. Indeed, according
to Insights West 2016 Canadian Social Media Monitor, 28% of 35- to 54-year-olds said they
were spending more time on Facebook. Twenty-four percent said they were spending more time
on YouTube. Sixty percent said they had not spent time on Instagram, Snapchat and Tumblr.
Thirty-six is the new thirty when it comes to buying a home

The average age of first-time home buyers has risen to 36 years-old according to a survey by
the Bank of Montreal (BMO), with the increase driven by rising home prices and a growing
number of Young Adults deciding to stay with their parents while at university. At the same time,
there has also been an increase in the number of first-time home buyers taking financial support
from their parents. According to a separate 2016 BMO survey, 44% of Millennials said they
expected a loan or a gift from their parents when buying a house.
Sandwich generation facing financial challenges

According to a 2016 article on news website Huffington Post, Mid-Lifers are becoming
increasingly concerned that their levels of disposable income and their standard of living will be
affected by both their children living with them for longer periods and having to support their
parents as they get older. Further, a survey by Insights West in British Columbia in 2017
revealed that 56% of the so-called sandwich generation were worried about the challenge
posed by the cost of their ageing parents care.
According to a report on the survey on website news1130.com, Fewer than half of
respondents also mention long wait lists to access a care home or for home care (40%),
difficulty getting access to a care home located close to where you live (36%) and inadequate
access to a care home for seniors (28%).
Chart 7 Number of Middle Youth (Aged 30-44)

(2) This consumer group includes older Millennials (born from 1980-1994) and Generation X (born from 1965-
1979)
Mid-lifers
The number of Mid-Lifers (aged 45 to 59 years-old) reached nearly 7.8 million in 2016,
reflecting an increase of 0.3% since 2011 and accounting for 21.5% of the total population in
2016. Between 2016 and 2030 the number of Mid-Lifers is projected to decline by 1.4%,
reaching 7.7 million, as more transition into the older Later-Lifer segment. In 2030 Mid-Lifers are
projected to account for 18.7% of the total population.
Although the average incomes of Mid-Lifers tend to decline as they get older, Mid-Lifers are
nevertheless in their peak earning years, with those aged 45 to 49 years-old recording the
highest income levels among all age segments in 2016. In 2016 the average annual gross
income of those aged 45 to 49 years-old reached CAD70,41, reflecting growth of 6% (in real
terms) since 2011, while the average annual gross income of those aged 55 to 59 years-old
reached CAD65,719 in 2016, reflecting growth of 7.2% since 2011.
Though Mid-Lifers generally enjoy high spending power, they are also saddled with the most
debt. According to debt-monitoring firm Equifax, in 2016 the average debt (excluding
mortgages) accumulated by those 46 to 55 years-old was CAD32,594, compared to average
debt among 26- to 35-year-olds and 56- to 65-year-olds was CAD17,604 and CAD27,840,
respectively.
Most Canadians are not saving for retirement

A recent report by bank HSBC revealed that 48% of pre-retirees in Canada said they have not
yet started or are currently not saving to fund their retirement. Rather than saving, a significant
number of pre-retirees said they expect to find retirement savings underneath the floorboards.
The report noted One in five (20%) of Canadian pre-retirees compared to just one in 20 (5%)
of current retirees say that income from downsizing or selling a primary or secondary property
will help them fund their retirement. Canada ranks well above the global average (12%), trailing
just behind Australia (26%), the UK (22%), and Singapore (21%). Furthermore, those closer to
retirement are more likely to think that income from downsizing or selling property will help them
fund their retirement. In addition, Three in five (59%) Canadian pre-retirees say they plan to
move into a retirement home one dayfour times more likely than current retireesand almost
double the global average (31%).
Chart 8 Number of Mid-Lifers (Aged 45-59)

(2) This consumer group comprises older members of Generation X (born 1965-1979) and Baby Boomers (born
1946-1964)
Later-lifers
Later-Lifers (aged 60 years-old and older) are the largest consumer segment, accounting for
nearly 23% of the total population in 2016. Between 2011 and 2016 the number of Later-Lifers
increased by 18.5%, reaching 8.3 million in 2016. Between 2016 and 2030 the number of Later-
Lifers is projected to increase by a robust 42.3%, reaching 11.8 million in 2030 and accounting
for nearly 29% of the total population.
A recent survey by bank HSBC revealed that 72% of Canadian retirees reported that they are
happy in retirement, a rate second only to Mexico (80%). According to a 2017 survey by RBC,
the top six activities of retired Canadians are taking time for myself (62%), spending more time
with my spouse/partner (45%), getting more rest (43%), travelling (42%), improving my health
(38%) and spending more time with my family, other than my spouse/partner (32%). Thirty-three
percent said they did volunteer work. Among retirees top worries: maintaining their standard of
living (38%), the cost of healthcare (37%) and inflation and its impact on personal finances
(37%).
With Canadians living longer and healthier lives, there has been an increase in the number of
Later-Lifers continuing to work despite reaching their retirement age. According to Statistics
Canada, one of every seven Canadians older than 65 years-old had jobs. Morganna Kelly of
Toronto, who recently came out of retirement to rejoin the labour market, said she did in order to
keep herself busy and to supplement her retirement income, adding Toronto is an extremely
expensive city, so even if you have a good pension ... it's very difficult to make it work.
Retirees coping on reduced income

A recent article in the Financial Post on a recent survey by Sun Life Financial Canada
revealed that retirees are living on 62% of what they previously earned and that 32% said they
were surprised at how they were able to manage on a reduced budget. Kevin Dougherty,
President of Sun Life Financial Canada, said Life in retirement is more sustainable than you
might think...Canadian retirees are doing quite well living on just over 60% of the income they
had when they were working. And this average doesnt change much when comparing men with
women or taking marital status into account.
The report went on to note that A workers monthly expenses come to CAD3,431, compared
to the CAD2,611 budget of a retiree. In a provincial breakdown, Ontario and Alberta had the
most significant cuts in spending after retirement, budgets dropped over CAD1,000. The greying
communities of Atlantic Canada retain most of their income.
Growing number of Later-Lifers renovating their homes

A recent report by the Canadian Mortgage and Housing Corporation (CMHC) revealed that a
growing number of Later-Lifers are spending on renovating their homes. In fact, according to an
article on home renovation website eieihome.com, The clich of the 50 or 60-something couple,
selling their home and flying south to a condo in the sun seems to be going the way of the dodo
bird[as] older households have become a driving force in Canadas home renovation boom.
The report from CMHC went on to note that aging in place is among the primary reasons
behind the trend: Approximately 85% of Canadians 55 and over state having a strong desire to
remain in their homes, rather than relocating to age-specific living facilities. With independence
underscoring the belief systems of the baby boomer generation practically from birth, its no
surprise that it remains what drives them now in their senior years. Other factors include
making an effort to improve home equity and accommodating the growing number of
multigenerational households. Stemming from the economic downturn, statistics show that 19%
of North Americans have lived in a multigenerational household since 2014. This can be adult
children remaining at home with senior parents, seniors coming to live with adult childrenany
household that contains two or more adult generations.
Chart 9 Number of Later-Lifers (Aged 60+) and Life Expectancy

Notes: (1) Percentage of people over the aged of 65 per people aged 15-64.
(2) Data for 2017-2030 are forecasts

(3) Later-Lifers include older Baby Boomers (born from 1946-1964) and the Swing Generation (born from 1925-
1945)
HOUSE AND HOME
the Home Space

Nearly 72% of households are occupied by home owners. For the most part, consumers live
in houses located in urban areas, although the number of young people living in rented
apartments has remained stable. Canadians are said to own, on average, the third-largest
homes in the world. However, this is changing somewhat as a growing number of Later-Lifers
and empty nesters look to downsize to smaller homes and as a growing number of younger
consumers look to live in affordable single-person households. In addition, many new
immigrants do not have the same expectations in terms of house size as longer-term home
owners and they are often satisfied living in smaller homes.
In recent years the strong real estate market has meant more Canadians have been buying
homes and, in turn, demand for home furnishings, including big-ticket items such as furniture
and white goods, has been increasing. In addition, home owners are also continually looking at
ways to improve their outdoor living spaces and this has led to increased demand for a wide
range of outdoor lighting, furniture and appliances. According to Sylvia Franklin, show manager
of the 2017 Backyard Living Expo, People are valuing that space in their backyard more than
they ever have. People see their backyards as an extension of their home, and are taking the
inside and moving it outdoors. Landscape designer Carson Arthur added, Baby Boomers are
downsizing and interested in customizing their new, smaller outdoor spaces so they can
continue to do what they enjoy doing, but with less physical effort. Generation X is...inclined to
reward their hard efforts in the workplace with the type of landscape they feel they deserve,
regardless of the expense which they are confident theyll figure out".
Many home owners are undertaking home improvement projects, boosting demand for a wide
range of DIY products. Many home owners are motivated to take on these projects by the
realization of how much a remodelled kitchen or bathroom can add to their homes value in the
current hot housing market. On the other hand, many Canadians are simply handy and they
enjoy DIY home improvement regardless of the size of the project.
Households increasingly looking to adopt smart home devices

Thirty-four per cent of Canadians said they owned a smart home device, while 61% said they
believed that smart home technology would improve their lives, according to a 2016 study
commissioned by Canadian telecommunications company TELUS. Further, the survey revealed
that 63% of respondents said they believed they would own at least one smart home device
such as a smart TV, thermostat, lighting, appliance or entry and security systemby 2018. Fifty
percent said they believed they would own three or more smart home devices.
Rob Currie, vice-president of Mobile Devices at TELUS, said Smart home technology is
shifting from early adopters into the mainstream...Today, were seeing basic functionality like
controlling lighting or thermostats from our smartphones, but soon, innovations like biometric
security systems, intelligent kitchens and home health solutions will make our lives so much
safer, healthier and easier that smart home technology will become integral to our digital
lifestyles.
Young Canadians increasingly moving to city centres

According to the 2016 census data, a growing number of young Canadians are moving from
the suburbs to the centres of Canadas largest cities, including Toronto, Vancouver and Calgary.
According to an article on website buzzbuzzhomecom by urban planner and researcher Ren

Thomas, One group thats driving the change in housing preferences is the Millennials...They
are drawn to mixed-use urban neighbourhoods for their social and leisure activities, walkability,
and varied employment options. With decreased economic prospects and academic debt,
Millennials are less able to afford the single-family homeand their tendency to marry and have
children later, if at all, means that the option may not appeal to them. Millennials in a number of
countries around the world also choose to take public transit or bike rather than drive, which
means their housing locations skew towards dense, transit-supportive areas.
Home owners say they are looking to sell but are reluctant
According to a recent survey commissioned by bank CIBC and reported on website
huffingtonpost.ca, a very high proportion of home owners are looking to sell. Indeed, according
to the survey, 81% of Millennial home owners said they intend to sell their homes, with nearly
40% saying they were looking to upgrade and, perhaps worryingly, 63% saying they wanted to
sell due to the high costs associated with carrying a mortgage and other housing costs. Fifty-
seven percent said they were concerned that a rise in interest rates would make their mortgage
payments unaffordable. The survey also revealed that 67% of Baby Boomers said they intend to
sell their home, with the majority citing the desire to downsize.
On the other hand, Among all respondents who said they would like to sell, nearly two-thirds,
or 62%, said they are reluctant to sell because they fear buying a new home in such a high-
priced market. David Nicholson of CIBC said "In today's market, homeowners are facing a
conundrum as to whether to buy, sell or stay put. Regardless, according to data compiled by
the Canadian Real Estate Association, the number of residential property transactions increased
by 6.3% in 2016.
Chart 10 Overview of Households: 2016
Source: Euromonitor International from national statistics
Chart 11 Households by Type, Occupants, and Pet Ownership
Running Costs
In recent years household electricity prices have increased at nominal rates while gas prices
have declined, putting little pressure on household budgets. Between 2011 and 2016 consumer
expenditure on electricity (known as hydro in Canada) increased by nearly 5% (in real terms),
reaching CAD1,439 per household in 2016. Over the same period, consumer expenditure on
gas declined by 25.5%, reaching CAD380 per household in 2016.
On the other hand, consumers in Ontario are paying far higher electricity rates than
consumers in other provinces. According to a recent article in the Globe and Mail newspaper,
Ontarios electricity prices are far higher than those in the rest of the country. Quebec, for
example, enjoys rates less than half of those in Ontario...The bad news, for consumers and the
government, is that rates likely will not be coming down any time soon. According to a recent
report on website cbc.ca, there are a number of reasons that consumers are having to cope with
high electricity prices, but in broad terms the article boiled it down to policy decisions made by
past governments.
Compared to consumers around the world, Canadians have traditionally paid low rates for
water and sewage. However, in recent years prices have increased. Indeed, between 2011 and
2016 consumer expenditure on water and miscellaneous domestic services increased by 20.3%
(in real terms) to reach CAD531 per household in 2016. According to a recent report from the
Frasier Institute, Water and sewer/wastewater charges have been rising rapidly as many
communities upgrade their water systems after decades of neglect. One of the justifications for
the rising rates is to promote environmental responsibility and water conservation.
Chart 12 Running Costs per Household: 2016
Source: Euromonitor International from national statistics/Eurostat/UN/OECD

Note: Consumer expenditure per household in constant 2016 prices
SPENDING AND SAVING
Attitudes Towards Spending

Consumers have enjoyed high levels of disposable income in recent years and, in turn,
generated high levels of spending. On the other hand, the impact of the recent decline in global
oil prices on the energy-dependent economy has made many consumers more hesitant in their
spending. In 2016 consumer expenditure per household reached CAD80,154, reflecting growth
of 5.2% (in real terms) since 2011.
Rising levels of spending have also been reflected in consumers relative comfort in
borrowing, whether it be via credit cards or loans from financial institutions. In 2016 the
outstanding balance of consumer credit reached CAD37,400 per household, reflecting growth of
4.2% (in real terms) since 2011. In particular, consumers are also borrowing to buy new cars
and to fund their education. Indeed, the outstanding balance of education loans increased by
31% (in real terms) between 2011 and 2016. The Canada Student Loans Program said it
expects that 40% of student loan borrowers would reach the maximum loan limit in 2016-17.
Consumers are increasingly shifting from cash to financial cards to purchase products and
pay their bills. In 2016 the retail value of card transactions reached CAD49,008, reflecting
growth of 13.5% (in real terms) since 2011. In contrast, the retail value of cash transactions
reached CAD4,889 per household, reflecting a decline of 25.6% since 2011. Unlike consumers
in other countries, Canadian consumers prefer paying with credit cards rather than debit cards,
although debit cards are frequently used for smaller purchases. In addition, a growing number of
consumers, particularly younger consumers, are making mobile payments with their
smartphones and tablets.
Consumers beginning to embrace contactless payments

Consumers are increasingly buying products using the quicker and more convenient method
of contactless card payment, according to the 2016 Moneris Mobile Wallet Survey. Rob
Cameron, Chief Product Officer at Moneris, noted More Canadians especially younger ones
are tapping their cards to pay as opposed to inserting them into payment terminals... When it
comes to mobile wallets, the survey found that 25% of Canadians aged 18-34 preferred paying
with a mobile wallet over cash or card (compared to 18% aged 45-54, 10% aged 55-64 and 6%
aged 65 and older).
According to a 2016 study by Technology Strategies International, the value of contactless
payments almost doubled between 2015 and 2016. Christie Christelis, President of Technology
Strategies International, told website finextra.com The contactless market has evolved to the
point where consumers are frustrated if the merchant doesnt accept contactless payments. A
number of merchants have found it necessary to place signs on their POS terminals apologizing
for the inability to accept contactless payments. The study revealed that the most popular
points for contactless card payments are grocery stores and supermarkets.
Consumers demanding longer-term auto loans

According to an article on website moneysense.ca, Buying a car or truck is a huge event in
the average Canadians life. After all, automobiles are the second-most expensive asset most
consumers own. More often than not, consumers need to borrow to buy a new car and recently
the terms they have been seeking on paying back those loans have changed. Indeed, Mark
Buzzell, CEO of Ford Canada, said that 41% of new car buyers had taken a loan of six or more
years in the record-setting sales year of 2016. George Iny, car analyst and director of the
Automobile Protection Association, said [Record sales have] been fuelled by low interest rates
coupled with longer financing terms of 84 and even 96 months that many car dealerships are
offering, just to make the sale. A couple of car companies were even talking about 108 month
loans (9 years) which is extraordinary.
New mortgage rules to affect first-time home buyers

For the most part, the biggest asset consumers own is their home and, in turn, the biggest
loan most consumers secure is their mortgage. In 2016 the outstanding balance of
mortgage/housing lending reached CAD121,590 per household, reflecting growth of 14.5%
since 2011. In an attempt to help ensure that borrowers can make their mortgage payments
when interest rates rise, the government recently limited the amount they can borrow. As a
result, according to a report on website moneysense.ca, Canadas first-time home buyers may
have to shelve their dream house fantasies. Frank Napolitano, managing partner at Mortgage
Brokers Ottawa, said First-time homebuyers will probably have to probably scale down the type
of home that they may have planned to buy.
The report went on to explain Under the new rules, a stress test that had only applied to
borrowers who opted for variable rate mortgages or fixed rate mortgages with terms less than
five years will now be used for all home buyers with less than a 20 per cent down payment. That
means borrowers must be able to qualify for their mortgage using a higher interest rate than
they will actually be paying on their mortgage.
Edmonton-based broker Jason Scott observed that many of his clients would not have
qualified for their mortgages under the more stringent rules...People who have less than 20%
down are going to qualify for a whole lot less money, Scott said. Youre not paying more, but
youre going to be able to buy less house...I think its going to take some people out of the
market, said Napolitano. Theres no question that some young Canadians that had aspired to
buy a home, may have been ready to buy the home this year, but now I think they may have to
wait.
Attitudes Towards Savings

During the 1980s, Canada was considered to be a nation of savers, with consumers putting
away up to 20% of their annual income. Since then, however, the savings environment has
changed dramatically. Indeed, in 2016 he savings ratio reached 0%, down from 0.6% in 2015
but up from a negative savings ratio of nearly minus one percent in 2014. Many blame
stubbornly low interest rates in recent years for the change in savings behaviour. In a recent
Bank of Montreal report Chief Economist Doug Porter said Consumers ultimately respond to
the incentives that are put in front of them. Persistently low, low real interest rates have crushed
savings. It's not surprising. We are punishing savers tremendously in this country.
According to the Canadian Payroll Association's 2016 survey, 48% of respondents stated that
they lived pay cheque to pay cheque and that they would struggle to pay their bills if their salary
came a week late. Clearly, this group has little or nothing to put into savings or to invest at the
end of the month. Megan Coady, a 29-year-old who moved from Prince Edward Island to
Toronto in 2015, said she is not saving any money despite her much higher salary in Toronto.
She said I jumped at a chance to work in the biggest market in Canada. And I'm making twice
what I was in Prince Edward Island but, she added, she pays high rent for an apartment and
pays instalments for her auto loan and education loan; I don't have a stash of cash just for a
rainy day. My cost of living has also doubled.
On the other hand, according to the Franklin Templeton Investments 2016 Retirement Income
Strategies and Expectations survey, 70% of Canadian workers have started saving for
retirement, up from 60% in 2014. According to Franklin Templeton Managing Director Duane
Green, One possible driver of the rising retirement savings rate among Canadians could be the
increasing use of workplace savings opportunities, adding Our survey results show that 26% of
Canadians (up from 20% in 2014) are saving for retirement through workplace salary deduction
programs. However, despite this positive savings trend in Canada, we tend to see some
recurring anxieties about retirement, both from our annual survey and anecdotally in our
ongoing retirement discussions with individual Canadians.
Savings affected by summer spending

After enduring months of cold, hard winter weather, many Canadian consumers celebrate the
summer by spending. According to a 2016 report from the Bank of Montreal (BMO), As
temperatures soar so does Canadians' spending, and while many don't feel guilty about
enjoying the season, half (52%) admit that their summer habits have negative long-term effects
on their savings. The report added One quarter (28%) of Canadians say they go into debt
during the summer due to their spending. Another 27% dip into their savings to support their
spending and 13% forego saving and paying off debt altogether to enjoy the season... Almost
half of Canadians (48%) admitted to paying off less of their credit card balance during the
summer months than they normally would.
Of course, not all consumers are comfortable going into debt while enjoying the warm
weather. The BMO report also noted that 25% of Canadians said they will not travel for leisure
for budgetary reasons during the summer. In addition, many holiday-makers are wary of the
fluctuating foreign exchange rates, with 47% saying they will restrict their travel to domestic trips
while 14% opting for a staycation to get the most bang out of the Canadian buck.
Chart 13 Key Spending and Savings Measures: 2016

Note: In constant 2016 prices
SHOPPING
Main Household Shop

Consumers tend to shop for food in modern grocery retailers, particularly supermarkets and
hypermarkets and less frequently at traditional, independent grocers. On the other hand,
traditional grocers are better suited to meet growing consumer demand for ingredients for Asian
and other ethnic dishes. According to a report on 2017 grocery trends on website federated.ca,
Consumers are...increasingly interested in trying different ethnic cuisines and ingredients. This
is a place where independent grocers can really shine, since they are already better at serving
ethnic markets than their large competitors.
According to the 2016 BrandSpark Canadian Shopper Study, More Canadians enjoy
household shopping than not, with 52% of shoppers saying that hunting for deals makes the trip
fun. Fifty-six percent regularly shop multiple stores to get the best prices, a proportion that has
decreased modestly with the rise of price matching. Just 33% of shoppers say that the
convenience of one-stop shopping is more appealing than the lowest prices. In addition, 45% of
shoppers said they are not as brand loyal as they were just a few years ago. Robert Levy,
President and CEO of BrandSpark International said "[The trend] appears to be driven in part by
rising food prices and the low dollar, as we're seeing promotions drive product switching more
than ever."
Reporting on the survey results, website strategyonline.ca noted The most common
shopping trips are regular grocery shopping trips, with 54% saying they most recently made this
type of trip, with 39% saying they made a small basket trip for only a few needed items.
Shoppers over the age of 50 were slightly more likely than other age groups to have made a
small basket trip most recently, with shoppers in Quebec far less likely to have made one than
those in other provinces.
Among the alternatives to modern retail grocery chains for health-conscious and
environmentally aware consumers are traditional venues such as farmers markets where
shoppers can buy local fresh foods. A recent report on the website of research project Reap
Ontario noted [Farmers] markets are loved by shoppers, communities and farmers alike.
Increasingly discerning shoppers appreciate being able to buy farm-fresh, local and sometimes
unique products directly from the person who produced them. Communities love the bustle of
local economic activity they create. And farmers love connecting with consumers who want to
learn about their products and appreciate their hard work.
At the same time, however, the rising price of groceries in 2016 led many consumers to
reconsider the way they shop. Indeed, according to a 2016 study by the University of Guelphs
Food Institute reported on website globalnews.ca, Nearly one-quarter of Canadians are worried
about how to pay for groceries, with more than 50% shifting their shopping habits amid
fluctuating food prices, adding About 41% said they were finding alternatives to foods they
would typically buy that were suddenly too expensive.
Despite concerns among many consumers about rising prices, food shoppers still prefer local
products and many say they are willing to pay more for them. According to a recent article from
ctvnews.ca, Locally produced food is gaining popularity with consumers and they are willing to
open up their wallets to get it. According to research from Loyalty.com, 61% of Canadians say
purchasing local food is important and nearly half would pay up to 30% more to get it. Eighty-
seven percent of respondents said theyd increase their budget if a local alternative were more
readily available. Focusing on food shoppers in British Columbia, the article reported The most
preferred locally produced foods are fruits and vegetables, followed by locally produced meat,
beer and wine.
After a slow start, online grocery shopping picking up steam

Canadian consumers have been slow to embrace online grocery shopping in recent years.
Indeed, according to a recent report from the Bank of Montreal noted in The Star newspaper
Fewer than one per cent of Canadians total food purchasing happens online. But it appears
that Canadians shopping habits may be changing, particularly in light of grocery store chains
expanding their online offerings and a growing number of younger consumers looking for
convenience and time savings.
For example, Jeremy Pee, Loblaws senior vice-president for e-commerce, told The Star that
about 80% of those who try Loblaws click and collect grocery service] once return for a second
visit and many, especially busy parents, become repeat customers. He added that Loblaw has
no plans to start a home delivery service...The company heard from customers that they dont
like having to wait long periods at home for delivery. Indeed, few if any grocery chains offer
home delivery services.
According to a recent profile in the Canada Post of currentand wannabeonline grocery
shoppers, 20% earn CAD100,000 or more per year and most are Millennials and GenXers,
adding Todays typical e-grocery shopper is younger, urban and male.
Food shoppers looking for ethic grocery items

The large number of immigrants in Canada, particularly South Asian immigrants, means that
there is great demand by food shoppers for a wide range of ethnic grocery products. But ethnic
and non-ethnic consumers alike are having to adjust their shopping habits as it is difficult to find
all of the products they are looking for in mainstream Canadian grocery stores. A recent article
in the Canadian Grocer discussed the findings of the recent Modern Grocery Shopper: Attitudes
and Opinions Survey conducted by LoyaltyOne, which noted Two-thirds [of respondents] say
that they have to visit three or more storesincluding independent retailers, specialty food
stores, and online retailersto buy everything they need. Nearly the same number (63%) say
theyre not finding enough ethnic food and ingredients at their main grocery store...Significantly,
45% of non-ethnic Canadian consumers also say that they also cant find the assortment of
ethnic foods and ingredients theyd like at their primary grocery store.
A separate article in Canadian Grocer noted While mainstream retailers often carry products
for various ethnic cuisines, South Asian immigrants and their descendants have complained the
products are watered-down versions, says Salima Jivraj of Halal & Co Media, an Ajax, Ont.-
based marketing firm that has done focus groups with South Asian shoppers. But, according to
Susan Weaver of consultancy Pearl Strategy Innovation, Indian stores are more expensive and
the location is challenging, leaving many consumers frustrated.
Chart 14 Main Household Shop by Retailer Type: 2016
Source: Euromonitor from trade sources/national statistics

Note: Spending per household in constant 2016 prices
Shopping for Big-ticket Items

While loyalty programmes and value remain important to consumers when it comes to
shopping for big-ticket items, social media platforms are also beginning to play a bigger role in
purchasing decisions. A growing number of shoppers are turning to social media to discover
new products, compare features and prices, read product reviews and seek out discounts, as
well as to connect with brands for queries or for after-sales service. Insights West 2016
Canadian Social Media Monitor report revealed that 16% of Facebook users follow companies
and 8% of users said they commented, posted or talked about businesses on Facebook.
According to digital media specialist Melody McKinnon, When Canadians have a complaint
about a company, they prefer to vent on Facebook, followed by Twitter, Google+ and LinkedIn.
Consumers tend to shop in specialist retailers for big-ticket items such as in-home consumer
electronics and furniture. When shopping for white goods and major appliances, consumers
shop not on in specialist retailers but in mixed retailers and department stores. On the other
hand, a growing number of consumers, particularly younger consumers, often go online first to
conduct product and price research before visiting brick-and-mortar stores.
2016 was a record year in terms of new car sales. David Adams, president of the Global
Automakers of Canada, recently told the newspaper The Globe and Mail that crossovers,
pickups and traditional sport utility vehicles continue to be popular while demand for high-end
cars has also increased, especially among Baby Boomers. At the same time, according to
Fleetcarma, 11,000 electric vehicles were sold in 2016, reflecting growth of 56% over prior year.
Incentives offered to buyers have been a key factor behind the growing demand. Indeed,
according to a recent article on website cbc.ca, 95% of electric vehicle purchases were made in
provinces that offered rebates.
Demand for household big-ticket items rises in hot home market

As consumers tend to buy new household-related big-ticket items when they move house, the
recent growth of home buying has led to increased demand for such products as white goods
and major appliances, furniture and in-home consumer electronics in past years. According to
data compiled by the Canadian Real Estate Association, the number of residential property
transactions increased by 6.3% in 2016. And although the rate has declined in recent years, still
one-quarter of Canadians and 39% of those aged 18 to 34 years-old said they plan on buying a
new home in the next two years, according to the 2017 RBC Home Ownership Poll. According
to RBC, The idea of a white picket fence may be antiquated, but the dream of home ownership
is alive and well in Canada.
On the other hand, the survey indicates that a growing number of consumers are considering
postponing selling their home and buying a new one, and this is expected to affect demand for
big-ticket household items, at least in the short term. According to RBC, Among Canadians who
are delaying purchasing a home, the top three reasons cited include: belief that house prices
may come down (58%), uncertainty about the economy (51%) and concerns about affordability
(38%). In addition to concerns about high home prices, recent changes to mortgage eligibility
may mean fewer young prospective home buyers will have the opportunity to jump on to the
property ladder, again affecting demand for household items.
Shopping Online
Internet retailing continues to increase in importance among Canadian consumers, with per
capita spending on internet retailing increasing from CAD563 in 2015 to CAD661 in 2016,
reflecting growth of more than 17%. In addition, consumers, particularly younger consumers, are
increasingly taking to their smartphones and other mobile devices to shop. In 2016 value sales
of mobile internet retailing reached CAD174 per capita, up from CAD36 per capita in 2012.
Clothing, flight/travel packages, books and consumer electronics are the items most
commonly purchased online, according to The State of E-commerce Report published by
Canadian Internet Registration Authority in 2016. According to the report, these are more often
products that consumers feel comfortable purchasing without seeing them or handling them first.
In contrast, healthcare products are amongst the least likely to be purchased by consumers
online.
Canadian shoppers often shop on US-based websites, despite the fact that shipping takes
longer and the prices are often higher. However, this is gradually shifting, with more consumers
beginning to shop on domestic websites. While the weakening Canadian dollar is one factor
behind this change, according to eMarketers Paul Briggs The bigger factor is the vast
improvement in the quality of offerings from Canadian retailit is a big part of why consumers
are shopping domestically more than ever. According to a 2016 survey by PayPal, A buy-local
mentality is sweeping across the nation with three out of four (73%) Canadian online shoppers
planning to buy holiday gifts online from Canadian retailers instead of buying from US or
international websites. Of those people, 43% are planning to buy more gifts from Canadian
retailers than they did last year. Millennials are more inclined to shop online from domestic
websites with 83% saying they plan to do so.
Credit cards and, to a lesser extent, debit cards are the most popular method of payment
among online shoppers, with payment schemes such as PayPal also often used. With regard to
delivery preferences, consumers generally expect items bought online to be delivered to their
homes but click and collect options are very popular in a country where transportation and
distribution can be issues.
Consumers showing greater interest in social commerce

A 2016 survey by PayPal revealed that Canadian online shoppers are warming up to social
commerce, which it defines as consumers buying directly from an advertisement on a social
media platform. According to the survey, 26% of Canadian online shoppers have already
engaged in social commerce and 54% said they would consider it.
Looking at shopping behaviour on social media platforms, the survey revealed that only 7% of
respondents said they would consider buying from a celebrity influencer on a social media
platform. Far more influential in the purchase decision are family and friends: Close to one in
three (34%) Canadian online shoppers said they would consider buying an item directly from a
brands advertisement on a social media platform if recommended by a peer, with Baby
Boomers leading the way at 38%...What else entices Canadians to buy directly from social
media platforms? Some of the leading reasons Canadians would consider social commerce
includes discounts or promotions (56%), the item advertised would make a good holiday gift
(45%), or theyve shopped from the brand before (32%).
Chart 15 Internet Retail Spending: 2016

Note: In constant 2016 prices
EATING AND DRINKING
Eating Habits
Canadians tend to adhere to the standard Western itinerary of three meals per day, i.e.,
breakfast in the morning, lunch in the afternoon and dinner/supper in the evening. However,
living in a diverse country, consumers often have different takes on standard meals. A recent
survey by Leger Marketing in conjunction with celebrity chef Ricardo Larrive and reported in
The Star newspaper revealed [In British Columbia] Asian flavours and organic foods are more
popular, and red meat is consumed less than elsewhere in Canada. Albertans spend more
money, eat more meat, drink less wine and involve men more often in food purchases.
Ontarians enjoy Caribbean flavours, bring their lunches to work, and are more likely than
residents elsewhere to text during breakfast.
The article added Quebecers eat breakfast more often, spend more time at the table, drink
more wine and prefer to eat meals at home rather than in restaurants. Respondents in the
Atlantic provinces reported eating the earliest, see themselves as beginners in the kitchen and
are more likely to learn from mothers and grandmothers than the Internet or cooking shows,
preferring meals that are easy and economical. The survey also revealed that Less than half of
Canadians make big batches of meals to eat during the week.
A recent survey by Dalhousie University and reported on website globalnews.ca revealed that
82% of Canadians said they eat breakfast at home, 11% said they eat breakfast at work and the
7% said they eat breakfast on the go. In addition, the survey noted that 72% of Canadians said
they bring their lunch to work and 24% buy their lunch on the go. Suzanne Carere, a registered
dietitian and director of Nutrition & Wellness, told the website Im very encouraged by the fact
that large majority of Canadians are at least eating breakfast at home and making their lunches
from home.
Indeed, it appears that consumers are dining out less frequently and spending less. In a
recent report from The Conference Board of Canada, Michael Burt, Director, Industrial
Economic Trends, noted As restaurants vie for Canadians' food dollars, they will not only be
competing against each other for market share, but with grocery stores as well. Dining at home
is becoming relatively attractive compared with eating out, given slower growth in income and
the fact that prices at restaurants have steadily risen despite a drop in grocery prices over the
last year.
Among those who do still dine out, demand slows for traditional fast food is slowing while
demand for fast casual dining is growing. According to a recent article on website
globalnews.ca, Fast-casual restaurants...are positioned as alternatives to fast food. Driven by
demand from millennials, the fast casual sector markets healthier and more sustainable menus.
That means replacing fried and previously frozen foods with fresh vegetables, customization
and fresh preparation.
Consumers are increasingly seeking out healthier eating options, be it while eating at home or
when dining out. In addition, there is growing demand for local products and numerous surveys
have revealed that consumers say they are willing to pay more for them. According to a recent
survey by LoyaltyOne, 61% of Canadians say that it is important to buy local food and
beverages. Among these shoppers, 87% said they would increase their monthly grocery
budgets if local products were more readily available.
Consumers hunger for international spices and seasonings

As a result of consumers increasingly seeking unique and different flavours, there has been
greater demand for ethnic sauces and condiments, such as sriracha, raita, chimichurri, soy
sauce and sambal, according to Restaurants Canadas 2017 Canadian Chef Survey. A 2017
article in Food in Canada magazine noted Canadian consumers have caught the flavour bug,
and continue to hunger for exciting international spices and seasonings both on their own and
in zesty exotic blends.
Doris Valade, president of Ontario-based Malabar Super Spice, told Food in Canada that she
sees no end to the demand for international flavours. Were seeing more Peruvian blends and
thats interesting because its a multicultural country, and weve been getting calls for the blend
for Filipino longganisa pork sausage for a while...Theres also a lot of interest in Moroccan
flavours they use a lot of fruit even in their savoury dishes. And a demand for more varieties of
chilies, fruity and hot, sweet and hot, smoky and hot. She added that there is also strong
consumer interest in the health benefits of spices: Turmeric was hot in 2016 and thats likely to
continue...Theres still a quest for natural ingredients and smaller ingredient lists on labels.
Chart 16 Consumer Spending on Food and Non-Alcoholic Drinks: 2016

Note: Per capita (in constant 2016 prices)
Drinking Habits
Canadians have always taken pride in their domestic beer, but while it remains by far the
most popular alcoholic beverage consumption has declined in recent years. Indeed, volume
sales declined by 6.4% between 2011 and 2016, reaching 83.3 litres per capita (at legal
purchasing age) in 2016. Over the same period consumption of spirits increased, albeit by less
than one percent, though volume sales of Canadian whisky increased by 3%.
In contrast, as consumers have sought out more sophisticated beverages in recent years,
demand for wine has increased significantly. Between 2011 and 2016 volume sales of wine
increased by 11%, reaching nearly 20 litres per capita (at legal purchasing age) in 2016. While
consumption of still red wine was greater than that of still white wine11 litres per capita for red
wine versus seven litres per capita for white winestill white wine was the faster-growing,
recording a volume increase of nearly 16% between 2011 and 2016 compared to 8.2% for still
red wine.
Though most consumers drink at home, pubs, bars and clubs are also popular drinking spots,
with wine bars the latest on-trade trend. Wine bars offering a wide array of wines and hosting
tasting events are opening up across the country in response to consumer demand.
Demand for soft drinks and juices has been declining in recent years as health-conscious
consumers keep a keener eye on their sugar intake and eschew artificial ingredients such as
sweeteners, colours and artificial flavours. On the other hand, the rising health consciousness
has driven greater demand for bottled water, which is increasingly perceived as a healthier
alternative to carbonates. Water with exotic flavours and health benefits associated with coconut
and other plant-based water is also gaining in popularity, especially among younger consumers.
Coffee remains the hot drink of choice among consumers. According to the 2016 Coffee
Drinking Survey conducted by the Coffee Association of Canada, 67% of adult Canadians enjoy
at least one cup of coffee a day with the average at three cups a day. In addition, the survey
reported that in the prior 12 months 76% of Canadians consumed traditional coffee, while 62%
consumed specialty coffee beverages, such as cappuccino, caffe latte and espresso.
Traditional coffee is most likely to be consumed by those aged 65 to 79 years-old while specialty
coffee beverages and frozen blended coffee are most likely consumed by those aged 18 to 49
years-old.
Craft spirits find appeal among Millennials

Following in the footsteps of popular craft beers and artisanal wines, there has been greater
interest in craft spirits in recent years. Younger consumers, in particular, are driving increased
demand for craft vodka and similar products. Barry Bernstein, who launched Still Waters
Distillery in Ontario in 2009, told website ctvnews.ca "I think part of all that is the desire for the
consumer to find a unique product. Locally produced product is very big, the whole locavore
movement...A lot of that's being driven by the younger, non-traditional market. Millennials are
very interested in spirits and seeking out unique product if the story behind it is intriguing".
Tea becoming more popular among young Canadians

Canadian consumers are becoming more sophisticated about tea consumption, with greater
interest in such characteristics as country of origin and the flavour profiles of various types of
tea. This growing popularity of tea has been boosted by the continued influx of immigrants,
particularly those from tea-drinking countries such as India and China.
At the same time, the growing awareness of health and wellness has piqued an interest in tea
among many younger consumers. According to website helloteacup.com, Tea is associated
with many health perks including relaxation, improving sleep, reducing anxiety etc. While theres
a growing interest for artisan tea enjoyed for the flavour and aroma, buying tea for health
benefits is still the major reason of purchase. Louise Roberge, president of the Tea and Herbal
Association of Canada, said in a recent article in the Globe and Mail In Canada, its all about
specialty tea. The image of tea is changing so you wont be afraid to show yourself with a cup of
tea and think that youre old. Millennials are drinking tea, and they love the culture.
Chart 17 Consumer Spending on Beer, Wines and Spirits: 2016

Note: Per capita in 2016 constant prices
GROOMING AND APPEARANCE
Investing in Yourself: Female Personal Grooming and Hygiene

A 2016 study by CNW Group/Allergan revealed that more than 70% of Canadian women said
that they made an effort to look good mainly for themselves, while 37% said they make the effort
for their partners and 15% said they make the effort for their friends. In addition, the study
revealed that Canadian women ranked healthy, glowing skin as the number one feature that
defines outer beauty, reflected by value sales of skin care products increasing by 5.7% (in real
terms) between 2011 and 2016. In particular, there has been growing demand for anti-ageing
products, reflected by value sales increasing by 23.3% between 2011 and 2016.
According to the 2016 BrandSpark Canadian Shopper Study, one-half of consumers believe
that mass-market beauty products are as effective as premium products. Robert Levy, President
and CEO of BrandSpark International said "We've seen a shift in thinking about beauty product
efficacy...Fifty-three percent of shoppers believe that ongoing research and development is
leading to more effective beauty products, and they don't just think these come from prestige
brands. Fifty percent of shoppers believe that it is possible to get the same effect from mass
market brands".
Consumers are increasingly considering sustainability when they purchase personal grooming
products. Indeed, there is a growing demand among consumers for beauty and personal care
products with natural ingredients and manufactured by companies that follow sustainable
business practices. In addition, sustainable fashion is becoming more popular, especially among
Millennials and Gen-Xers. Fashion designer Peggy Sue Deaven-Smiltnieks told website
nowtoronto.com People are starting to question their prejudices around sustainable fashion. A
lot of fashion brands are starting to approach me about how they can incorporate sustainability
into the process.
Facial procedures become more popular

Nearly 60% of Canadian women believe that facial fillers are more acceptable now compared
to five years ago, according to a 2016 study by CNW Group/Allergan. Furthermore, 51% said
they believed that such treatments could offer natural-looking results. Enhancements under the
eye were the most sought-after procedures, with 70% of Canadian women having concerns
about the bags under their eyes. This was followed by concerns about other areas of the face
such as fullness under the chin (63%), age spots (56%) and frown lines on the forehead (52%).
Chart 18 Consumer Expenditure on Personal Appearance: 2016

Note: Per capita consumer expenditure (in constant 2016 prices)
Investing in Yourself: Male Personal Grooming and Hygiene

Demand for male-specific grooming products has continued to grow, reflected by increased
sales of such items as mens bath and shower products (62% growth in real terms between
2011 and 2016), mens deodorants (4%), mens hair care (6%) and mens skin care (5%).
Growth has been driven in large part by younger consumers.
Men generally buy both premium and mass grooming products at a range of retailers,
including grocery retailers, drug stores/pharmacies and specialist retailers. In recent years,
however, a number of boutique mens grooming products have attracted attention, many of
them produced in Canada. A recent article in the Globe and Mail noted The newer products are
pricier than drugstore fare and can only be found in boutique barbershops and online retailers.
However, many men are seeking natural, small-batch alternatives instead of mainstream
offerings for their fancier ingredients and greater variety of scents. Its not just hipsters. Interest
in beards, barbershop-style services and mens skincare have reignited a growing worldwide
interest in shaving and grooming products specifically designed for men.
A recent article in the Vancouver Sun newspaper asked Is facial hair the new it accessory
for stylish men everywhere? We see that guys, particularly younger guys, are comfortable using
facial hair as a fashion accessory, says Emily Dalton, co-founder of the mens skincare brand
Jack Black. She added They may have a beard this week, and be clean-shaven the next. And
then next month, have a goatee and sideburns. It is a much more fluid approach for men. The
growth in popularity for beards has led to increasing demand for beard care products. According
to Dalton, Guys are very interested in the ritual of taking care of their beards, and most
importantly, the skin underneath their beard, to ensure that they can be comfortable, with no
itching and flaky skin...And, it is also a key desire for guys to keep their beard soft and well
groomed, to please their significant other.
More men starting to wax

Waxing procedures for body hair removal has become a part of the maintenance routine for a
growing number of men, according to a 2016 report on website huffingtonpost.ca. Fuzz Wax Bar
co-founders Jessie Frampton and Florence Gaven said that between 15% and 20% of their
customers are male and that the number of men undergoing waxing is growing. The pair note
that the most popular service by far for men is back waxing (about 60% or 70% of male
clientele), followed by brows and chests. Interestingly, many tattooed men get their arms done
to better show off their ink. Frampton added "Men are paying attention to how they look and
they want to feel good, just like females do".
Style Icons and Celebrity Influences

Social media celebrities, such as YouTuber Lilly Singh, fashion blogger Jenny Jovanovic and
Instagrammer Krystin Lee are increasingly influencing consumer behaviour. As a result, brands
are increasingly partnering with such influencers to either launch new products or review
existing ones. According to Jessica Thomas Cooke, co-founder of the INF Influencer Agency,
Our catch phrase is influencers are the new celebrity. They have major followings online, to
the point theyre able to sway peoples opinion and even spending habits.
While many Canadians look to US and other international celebrities for their fashion cues,
there are numerous home-grown men and women celebrities who wield influence. These
include film stars Ryan Gosling, Ryan Reynolds and Rachel McAdams, music stars Drake and
Justin Bieber and models Daria Werbowy and Coco Rocha. Sophie Gregoire, wife of recently
elected Prime Minister Justin Trudeau, has become a fashion icon of sorts. According to an
article on website chatelaine.com, Part of Gregoire Trudeaus style appeal is the effortless way
she mixes pieces from wallet-friendly mass-market retailers with up-and-coming Canadian
designers.
HEALTHY AND ETHICAL LIVING
Attitudes To Health and Wellbeing

Consumers are increasingly health-conscious, reflected by the growing demand for a wide
range of health and wellness products and services. Canadians are also eating healthier foods.
For example, there has been greater demand in recent years for organic food and beverages,
reflected by values sales increasing by 23.2% (in real terms) between 2011 and 2016. In
addition, Canadians continue to be avid users of vitamins and dietary supplements, reflected by
value sales growing by nearly 8% between 2011 and 2016.
According to the Commonwealth Funds 2016 International Health Policy Survey, 35% of
Canadians believe that the countrys publicly funded universal healthcare system (Medicare)
works well and that only minor changes are needed, a percentage down from 42% in 2013.
Fifty-five percent said they believed some fundamental changes are required, up from 50% in
2013. Long waiting periods are among the reasons behind the increase in dissatisfaction among
healthcare consumers, with only 43% of patients saying they are able to get a same-day or-next
day appointments. Regardless, 45% of healthcare consumers rated the quality of medical care
in Canada as excellent or very good, while 74% rated the quality of medical care received from
their regular doctors practice or clinic in the preceding 12 months to the survey as excellent or
very good.
According to the Canadian government website Government health insurance plans give you
access to basic medical services. You may also need private insurance to pay for things that
government plans do not fully cover. The most common types of plans are extended health
plans. These cover costs for prescription medications, dental care, physiotherapy, ambulance
services [and] prescription eyeglasses. If you work, you may get extra coverage from the
company or organization you work for. According to a recent article on website
huffingtonpost.ca, Many Canadians rely on private insurance to help with the 30% of health
needs not covered by our public health system.
Frustrated by these long waiting periods, some more affluent consumers have resorted to
hiring private consultants to help them navigate through the healthcare system. Dr. Danyaal
Raza, board member at the Canadian Doctors for Medicare, believes that the rise of these
patient navigator services is an indication of very real problems in our health-care system ...
These are solutions to this problem, but only for people who can afford it.
Obesity rates among Canadian adults (above the age of 15 years-old) have been increasing
steadily over recent years. Indeed, 21.2% of adults were classified as obese in 2016, up from
19.4% in 2011. In addition, 33.4% of adults were classified as overweight, a rate that has
changed little from 2011.
Chart 19 Consumer Expenditure on Personal Health: 2016

Note: Per capita spending in constant 2016 prices
Ethical Living
According to a 2016 poll by the Canadian Broadcasting Corporation (CBC) and EKOS
Research, many consumers are conflicted between concerns about the economy and a rising
environmental ethic, with differences emerging between different age groups. More than 80% of
those aged 18 to 35 years-old said they were concerned about climate change and believed that
Canada should do more to support clean energy, even at the risk of higher energy costs,
according to the survey. At the same time, less than 70% of those aged 45 to 54 years-old
believed the same. Frank Graves, president of EKOS, observed At the highest level, you see
this tremendous collision going on between two really powerful forces. Economic prospects for
Canadians are dismal and that's coupled with a sea change commitment to climate change and
a low carbon economy. He added So here we see an enormous amount of division across
those two competing forces. We also see it exceptionally divided on regional and partisan lines
as well.
An increasing number of consumers are considering sustainability in their purchasing
decisions, whether it is when buying beauty products, food and clothing. Designer Morgan
Mallett recently said We are all becoming aware of the incredible damage our culture of
consumption and planned obsolescence is having on our world. There is a significant rise in the
number of people who want to know how and where their clothing is made. Consumers have
more power than we realise.
Between 2011 and 2016, value sales of organic food and beverages increased by 23.2% (in
real terms). On the other hand, despite believing that organic food products are environmentally
friendly, most consumers are hesitant to pay the higher prices. According to a 2016 BrandSpark
Canadian Shopper Study, Thirty-six percent of Canadians are convinced that organic food
products are healthier, even though only 23% regularly buy them. Sixty percent of Canadians
stated they would buy more organic food products if they were less expensive. Canadians also
report that environmental benefits were also important for organic food products, with 42%
agreeing that organic products are better for the environment; however, this benefit doesn't
command the same premium price with only 33% of shoppers willing to pay more for
environmentally friendly products.
Nearly 10% of Canadians participated in the sharing economy in 2016, according to data from
Statistics Canada. Consumers, especially Millennials, have become more open to the idea of
sharing rather than owning things. For example, among 25-year-olds, 14.6% said they used a
ride-sharing services and 8.6% said they used accommodation sharing services. On the other
hand, among those aged 55 years-old and older the figure reached only 2.1% for both services.
More young consumers seek socially responsible investments

In 2015 there was CAD1.5 trillion under responsible investment, up by 49% from 2013,
according to a study by the Responsible Investment Association (RIA). Indeed, the RIA noted,
Millennials, the generation born in the last two decades of the twentieth century, are 65% more
likely than Baby Boomers to consider ESG [environmental, social and governance] factors when
investing, and more than twice as likely to seek investments dedicated to solving environmental
and social challenges. Although younger investors typically do not have significant wealth, they
are having a growing influence over household investment decisions. This younger generation
of investors will be an increasingly important demographic for the investment industry going
forward, as they are set to inherit billions over the next few decades. Deb Abbey, RIA Chief
Executive, said We're finding that the younger generation tends to have more knowledge and
interest in responsible investing in making money and having a positive impact on society at
the same time.
Chart 20 Obese and Overweight Population by Gender: 2000-2016
Source: Euromonitor International from WHO/OECD
Sport and Fitness

The results of a recent study by Vital Signs and the True Sport Foundation reported by the
Canadian Broadcasting Corporation revealed that when sports appear to be more popular than
ever, participation rates across age groups are in decline. The report went on to note Perhaps
most troubling is that many kids are deciding to hang up their cleats or sneakers or skates at a
young age. By about age 13, many youngsters have already stepped away from an active life
style...The Vital Signs/True Sport Foundation study finds that the rising cost of sports is also a
barrier for many families. The most recent data shows that six out of 10 children from low-
income households are active in sports, compared with 8.5 out of 10 from families with incomes
over CAD80,000...In addition to the socioeconomic gap, there's a gender element to Canada's
sports squeeze. According to the study, one in three men in this country regularly participate in
sports, compared with one in six women. That's partly because girls are less likely to be active
when they are younger and more likely to drop out earlier than boys.
While fewer Canadians of all ages are participating in sports, a significant number continue to
watch sports. Canada is clearly a country obsessed by mens hockey, as evidenced by sports
highlight packages that routinely lead off with the NHL, even in the summer. Football, baseball,
basketball and mens soccer all receive plenty of airtime, according to a recent article on the
National Post. However, there has been a decline in the number of young Canadians watching
sports on television in recent years. According to a 2015 study by the Solutions Research Group
(SRG), 33% of Millennials watched the NHL online or on mobile devices, while 31% watched it
on television. On the other hand, 56% of Baby Boomers watched the games on TV, while 18%
watched it on other platforms.
Canadians adopting new fitness regimens

In a recent article in The Star newspaper, fitness experts identified the new ways in which
Canadians are keeping fit as well as those regimens that appear to be on the way out. People
across Canada are desperately clinging to their fitness resolutions, seeking out the latest crazes
and hopping on trendy exercise bandwagons. And just like your body transformation goals, its
out with the old and in with the new when it comes to fitness fads.
According to the experts, new fitness activities include obstacle courses, wearable tech
(Even the Luddites among us seem unable to resist fancy fitness tech), body weight exercises
and high-intensity interval training, which is becoming widely regarded as the best way to cram
in a quick and effective workout. The experts went on to note those activities on the outs.
They included Zumba, single-used excise machines and CrossFit.
Chart 21 Percentage of Households Owning a Bicycle: 2016
LEISURE AND RECREATION
Leisure Time
Maintaining a beneficial work-life balance is a high priority for Canadians. A recent article on
website moneysense.ca noted We are a culture obsessed with work-life balance, constantly
fretting over how much of our home and leisure time we feel we have to forfeit in order to earn a
decent living. According to recent OECD data, in comparison to the OECD average of 15
hours, full-time workers in Canada spend 14.4 hours a day on personal care and leisure.
A 2016 survey by BookNet Canada revealed that for 39.2% of consumers browsing the
internet was among the top two choices for spending free time, followed by 34% who chose
spending time with family and 33.6% who chose watching TV. Further, 21.6% and 18.4%
chose reading and watching movies, respectively.
A 2016 report from eMarketer estimated that adults in Canada spend an average of nine
hours and 41 minutes per day on different media, with mobile becoming increasingly dominant.
The report also estimated that consumers spent almost an hour more on digital platforms (four
hours and 21 minutes), including personal computer and non-voice mobile phone usage, than
on watching TV (three hours 22 minutes). Time spent on mobile devices exceeded time spent
on desktops and laptops by more than 30 minutes a day, with consumers turning to their
smartphones for everyday activities such as news, social, and weather updates.
A significant number of Canadians spend their leisure time online on social media platforms.
Facebook continues to be the most popular networking site in Canada, with 71% of Canadians
accessing the site at least twice a week, according to Insights West 2016 Canadian Social
Media Monitor, followed by YouTube (49%), Twitter (27%), Pinterest (23%), Google (21%),
Instagram (20%), LinkedIn (12%) and Snapchat (9%). Time spent by Millennials on YouTube
and Instagram is increasing at a faster rate than time spent on Facebook. Indeed, 32% of those
aged 18 to 34 years-old said they were spending more time on YouTube and 33% said they
were spending more time on Instagram. In contrast 23% of Millennials were spending more time
on Facebook.
Consumers spend more on internet access than on TV subscriptions

A report published by the Canadian Radio-television and Telecommunications Commission
(CRTC) in 2016 revealed the Canadian consumers spent more money on internet access than
on television subscriptions for the first time in 2015. According to CRTC Chairman Jean-Pierre
Blais Our report illustrates how online and wireless services are becoming critical to Canadians
day-to-day lives. The explosive growth in data consumption clearly demonstrates that
Canadians are relying more and more on streaming and real-time communication applications
to consume content and communicate with the world.
Working from home generates more leisure time

Working from home has allowed many Canadians to spend more time on pursuing leisure
activities and attaining a greater work-life balance. Sheryl Boswell, Marketing Director of
Monster Canada told cbc.ca The shift to telecommuting has accelerated since the 1990s
growth of technology. I think more employers are doing it because this is what seekers today
demand.
Carla Holub, a 41-year-old WestJet sales agent who works from home, said Its been a great
switch. It just freed up a good two hours of my personal time being able to work from my home
office. She added that the move has paid off, as it has given her more time to spend with her
kids, taking them to sports and dance classes, in addition to reducing her daily costs.
Chart 22 Accessing the Internet: 2016
Source: Euromonitor International from International trade sources/Telecommunications Union/OECD/national

statistics
Vacations
Nearly 50% of working Canadians used all of their paid vacation days in 2016, while 15% did
not take any time off, according to a survey by Skyscanner.ca. Among those who did not take a
vacation in 2016, the high cost of going on holiday was cited most often. The survey also
revealed that 37% of respondents said they were inspired by recommendations from friends and
family when it came to choosing a holiday destination, while 17% were inspired by travel
reviews and 11% by travel feature articles. Seventy-one percent said that family trips were a
priority, while nearly 60% said they sought city and culture trips and wildlife and nature holidays.
According to travel site ca.kayak.com, cities such as Havana, Reykjavik, Rio de Janeiro and
Casablanca have seen the greatest increase in interest among Canadian international
travellers. The website observed A common thread is that Canadians are looking for sun, fun
and cultural experiencesand are willing to go further to get it, adding Long flights dont seem
to be deal-breakers for Canadian travellers. New Delhi saw a 39% increase in searches along
with Manila which saw a 44% increase.
At the same time, the impact of the weak Canadian dollar resulted in an increase in the
number of domestic staycations. According to a recent article in the Globe and Mail, The low
loonie is providing a much-needed boost by keeping Canadian vacationers at home and luring
Americans north...Those kinds of decisions are being duplicated in thousands of households
across the country, as Canadians balk at travelling south to where their spending power has
shrunk, opting instead to stay in Canada. The article noted that The Conference Board of
Canada says the low dollar, and low gas prices, prompted Canadians to make 600,000 more
domestic pleasure trips in 2015.
Emergence of low-cost airlines expected to spur travel demand

Strict regulations and a sparse population meant that in past years low-cost carriers avoided
Canada. However, this has begun to change with the emergence of players such as Jetlines,
WestJet, NewLeaf and Wow Air, among others and, as a result, the availability of low airfares is
expected to spur demand and encourage consumers, especially students, Millennials and even
middle-class families, to fly more frequently. 2017 is the year the low-cost carrier model really
makes an impact for Canadian travellers, according to a recent article on huffingtonpost.ca.
More and more Canadians will have the opportunity to opt for lower fares, recognizing the
upside of saving on their seat and paying only for the perks that matter enough to them that
they will fork out added cash for the service. While such travel is still not for everyone, it will be
an increasingly popular choice as travellers embrace the opportunity to get where they want to
go for less.
Chart 23 Holiday Time: 2016
Opportunities for Celebrations and Gift-giving

Christmas is one of the most significant occasions for gift-giving among consumers, with the
23 December still being the biggest shopping day of the year despite the recent popularity of the
Black Friday sales event. Other holidays when gift-giving is common include Valentine's Day,
Mother's Day and Father's Day. Gifts are also given on such occasions as birthdays, weddings,
anniversaries, births and graduations. A recent report on the results of a survey by Ebates.ca
observed It seems Canadians are always celebrating something as gift giving is an on-going,
year-round activity with 84% of Canadians purchasing at least one gift in a typical month. The
three most expensive gifting occasions are weddings, at an average cost of CAD120, followed
by birthdays (CAD90) and anniversaries (CAD87). Canadians shell out equally for Valentine's
Day and Mother's Day (CAD58 each), but a little less for dads (CAD54) and babies (CAD53),
and the least for housewarming gifts (CAD43). The majority of Canadians generally like giving
gifts and our survey shows that they can be quite generous, said Adrienne Down Coulson,
General Manager, Ebates.ca.
The survey also revealed that gift certificates are increasingly popular gifts. At the same time,
Most Canadians (54%) prefer to be surprised by the gift they receive, something that's
particularly true for women (63%) versus men (49%). And while many of us (44%) still strive to
find creative gift ideas that no one else would think to give, nearly half (43%) of men feel that
cash is king and prefer to just gift themselves, versus 38% of women. Only three in ten
Canadians say they give very specific hints as to what they'd like to receive.
A 2017 Leger survey commissioned by eBay Canada revealed that 56% of Canadians said
they were planning to celebrate Valentines Day. The survey found that Canadian women were
more likely to buy funny, quirky gifts, while men were more likely to buy typically romantic gifts
such as jewellery, flowers and chocolates. Celebrants were said to becoming more adventurous
when it came to choosing gifts to give, with 65% of gifts purchased being categorized as spicy
gifts such as lingerie, while 24% were next level gifts such as expensive jewellery.
Greeting cards still fairly popular

Despite the wide use of social media and messaging apps, giving family and friends greeting
cards is still common among many consumers, especially on occasions such as Christmas and
Valentines Day. According to a recent article in the Globe and Mail, while there has been
declining demand for traditional greeting cards, there has been increased demand for more
creative options, such as ornate handmade cards. Talking about the offerings of greeting card
giant Hallmark Cards, the article noted From cards that play pop songs to those bedazzled in
rhinestones, consumers have more choice than ever when it comes to the messages they send
on holidays, birthdays and other special occasions.
According to a 2016 report on website cbc.ca, a retro trend has hit the greetings sector and
there has been an increase in demand for handmade cards, letterpress cards and pop-up cards.
Bianca Bickmore, co-founder of print studio and paper shop Kid Icarus, said, There's definitely
a resurgence in hand-printed material, just because everything is digital these days. She
added, It's really easy right now to send a text message to somebody and say, 'I'm thinking of
you', but a card "doesn't just get deleted or taken for granted.

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CONSUMER LIFESTYLES IN

LIST OF CONTENTS AND TABLES

Shopping Online ..................................................................................................................... 24

CONSUMER LIFESTYLES IN CANADA

Source: Euromonitor International

TOP FIVE CONSUMER TRENDS

Consumer Spending Expected To Continue To Grow, Albeit Slowly

Consumers Increasingly Going Online To Shop

High Prices Making It Difficult for Millennials To Get on Property Ladder

Newly Arrived Immigrants Influencing Consumer Behaviour

Growing Number of Later-lifers Change Spending Habits

Babies and Infants

One in four babies overweight or obese

Source: Euromonitor International from national statistics/UN

Back-to-school shopping still determined by price

Canadian Kids amongst least active globally

Chart 3 Number of Kids (Aged 3-8)

Source: Euromonitor International from national statistics/UN

Newly arrived Tweens face numerous challenges

Chart 4 Number of Tweens (Aged 9-12)

Source: Euromonitor International from national statistics/UN

Teens increasingly shop online

Teens dropping out of sports

Chart 5 Number of Teens (Aged 13-17)

Source: Euromonitor International from national statistics/UN

More Young Adults living with their parents

Source: Euromonitor International from national statistics/UN

Thirty-six is the new thirty when it comes to buying a home

Sandwich generation facing financial challenges

Chart 7 Number of Middle Youth (Aged 30-44)

Source: Euromonitor International from national statistics/UN

Most Canadians are not saving for retirement

Chart 8 Number of Mid-Lifers (Aged 45-59)

Source: Euromonitor International from national statistics/UN

Retirees coping on reduced income

Growing number of Later-Lifers renovating their homes

Chart 9 Number of Later-Lifers (Aged 60+) and Life Expectancy

Source: Euromonitor International from national statistics/UN

(2) Data for 2017-2030 are forecasts

HOUSE AND HOME

the Home Space

Households increasingly looking to adopt smart home devices

Young Canadians increasingly moving to city centres

According to an article on website buzzbuzzhomecom by urban planner and researcher Ren

Chart 10 Overview of Households: 2016

Source: Euromonitor International from national statistics

Chart 11 Households by Type, Occupants, and Pet Ownership

Source: Euromonitor International from national statistics/UN

Chart 12 Running Costs per Household: 2016

Source: Euromonitor International from national statistics/Eurostat/UN/OECD

SPENDING AND SAVING

Attitudes Towards Spending

Consumers beginning to embrace contactless payments

Consumers demanding longer-term auto loans

New mortgage rules to affect first-time home buyers

Attitudes Towards Savings

Savings affected by summer spending

Chart 13 Key Spending and Savings Measures: 2016

Source: Euromonitor International from national statistics

Main Household Shop

After a slow start, online grocery shopping picking up steam

Food shoppers looking for ethic grocery items

Chart 14 Main Household Shop by Retailer Type: 2016