Table of Contents
Overview
-
- What you need to know
- Definition
Executive Summary
-
- Canada today
- The people
- The economy
- The consumer
- Perception of financial health continues to see improvement
-
- Figure 1: Perception of financial health, January/February 2015-18
- Financial goals are perceived to be attainable
-
- Figure 2: Agreement with ‘my financial goals are achievable’, by age, income and perceived financial health, January 2018
- Freedom and equality are the defining values of Canadians
-
- Figure 3: Canadian values, January 2018
- It’s true, consumers really do want experiences over things
- What it means
Canada Today – The People
-
- What you need to know
- Immigration drives Canada’s population growth
-
- Figure 4: Population growth by numbers, 1985-2016
- Canada will become increasingly diverse, opening opportunities for marketers
- Boomers and Millennials are the two largest segments
-
- Figure 5: Population aged 0 -14 and 65+, as of July 1, 1995-2035*
- Figure 6: Canadian population, by age, 2016
- Household structures are becoming more diverse
- Share of couples with children growing slower than share of those without children
- Multigenerational and lone-parent households are on the rise
- Marketing efforts need to keep up with the times
- Being time-pressed is a real issue
- The proportion of full-time working parents is growing
- Fewer stay-at-home parents seen today – though a growing proportion are dads
- Single-parent households also more likely to be working full-time
- Commuting times are getting longer
- Time-pressed consumers will need assistance and look for solutions
Canada Today – The Economy
-
- What you need to know
- Canada had solid economic growth in 2017
-
- Figure 7: Quarterly growth rates of real GDP, change over previous quarter, Q4 2012-Q4 2017
- In 2017, Canada unemployment fell to lowest rates in over 40 years
-
- Figure 8: Canada’s unemployment rate, March 2012-February 2018
- Interest rates were raised in response to strong economic data
-
- Figure 9: Canada bank rate, March 2012-December 2017
- Household debt levels in Canada continue to be high
- Gains were seen for the Canadian dollar in 2017
-
- Figure 10: Historical Canadian/US currency rate comparisons, April 30, 2013-March 15, 2018
- Gender gap in the labour market narrows
-
- Figure 11: Employment rate of women and men aged 25-54, 1950-2016
- Minimum wage increases will impact businesses in Canada
Expenditure Overview
-
- What you need to know
- Total Canadian consumer expenditures in 2017
-
- Figure 12: Total Canadian consumer expenditure, at current prices, 2017
- Outlook for the next five years
-
- Figure 13: Total Canadian consumer expenditure and fan chart forecast, at current prices, 2012-22
Category Review – In-home Food
-
- What you need to know
- What it means
- Changing dynamics at play in growing market
-
- Figure 14: Best- and worst-case forecast value sales of the food (at home) market, at current prices, 2012-22
- What to watch
- The future of grocery stores contains fewer or no cashiers
-
- Figure 15: Introducing AmazonGo and the world’s most advanced shopping technology, December 2016
- Grocerants have a growing presence
-
- Figure 16: Scratch Vietnamese Stir Fry with Spring Onion & Ginger (UK), November 2017
- Minimum wage hikes are on the minds of grocers
- Looking ahead
- Consumers expect “full disclosure’
- Canadians want help eating more healthily
- Science pushes the boundaries of food
- Consumers are relatively more highly engaged with food
-
- Figure 17: Category engagement – In-home food, January 2018
- Key consumer findings
Category Review – Alcoholic Beverages (at Home and On-premise)
-
- What you need to know
- What it means
- Demographics impact alcoholic beverage landscape
-
- Figure 18: Best- and worst-case forecast value sales of the alcoholic beverages (at home) market, at current prices, 2012-22
- Figure 19: Best- and worst-case forecast value sales of the alcoholic beverages (out of home) market, at current prices, 2012-22
- Artisanal drinks continue to hold cache
- Looking ahead
- Non-alcoholic beers gaining prominence in the European market
- Health claims related to quality and flavour may resonate
- Potential lies with gin
- Consumers are relatively less engaged with alcoholic purchase decisions
-
- Figure 20: Category engagement – Alcoholic beverages, January 2018
- Key consumer findings
Category Review – Non-alcoholic Beverages (at Home)
-
- What you need to know
- What it means
- Beverage expected to grow 2% to 3% annually
-
- Figure 21: Best- and worst-case forecast value sales of the non-alcoholic beverages (at home) market, at current prices, 2012-22
- What to watch
- Sugar concerns does not negate the importance of taste
- Changes ahead for the milk and dairy industries
- Looking ahead
- Innovations in coffee perk up sales
- Fortification may garner attention
- Opportunities lie in premiumization
-
- Figure 22: Fanta Jelly Fizz Orange Flavour Soft Drink (Australia, March 2017)
- Consumer engagement with non-alcoholic beverages is soft
-
- Figure 23: Category engagement – Non-alcoholic beverages, January 2018
- Key consumer findings
Category Review – Leisure Spending Categories
-
- What you need to know
- What it means
- Consumer spending on non-essentials picks up moving into 2018
- What to watch
- Social media keeps iGen women’s cravings top of mind around the clock
- Showcasing the softer side of dads brings gains as they’re bigger spenders
- Casualization of fashion gives older women something new to shop for
- Interactive campaigns bring greater depth to travel marketing
-
- Figure 24: Travel Oregon, Wine tasting in 360°, May 2017
- Looking ahead
- Amazon Prime will likely see growth
- The presence of Filipino flavours will gain steam in foodservice
- Family vacations include a break from the kids
- Low-cost airlines make travel a little more accessible
- Board games are winning over moms
- Canadians are keen on travel, dining out and leisure activities
-
- Figure 25: Category engagement – Leisure spending categories, January 2018
- Key consumer findings
Category Review – Health and Wellness Categories
-
- What you need to know
- What it means
- Consumer expenditure on wellness remains steady
- What to watch
- Competition for drug store retailers is heating up
- Consumer focus on health goes beyond waistlines
-
- Figure 26: Atkins Lift Chocolate Chip Cookie Dough Flavour Protein Bar (UK, September 2017)
- A more holistic approach to health means investigating the functional benefits of food
- Looking ahead
- Consumers are paying attention to the functional benefits of food
-
- Figure 27: Two Moms in The Raw Soul Sprout Cacao Nib Crunch Granola Bars (US, September 2017)
- Figure 28: Lotte Xylitol Hani Tsukinikui Mint Anti-Stick Gum (Japan, September 2017)
- Improving health through relaxation and getting a better night’s sleep
-
- Figure 29: Neom Organics Scent to Sleep (UK, January 2018)
- Figure 30: Mrs. Meyer's Clean Day Lavender Hand Lotion (US, February 2018)
- As expected, women are keener on beauty and personal care
-
- Figure 31: Category engagement – Beauty products and personal care, January 2018
- Beauty care as personal rewards will resonate with Canadian women
- Key consumer findings
Category Review – Technology and Communications
-
- What you need to know
- What it means
- Slow but steady growth projected for 2018
-
- Figure 32: Best- and worst-case forecast value sales of the technology and communications market, at current prices, 2012-22
- What to watch
- Consumers continue to show interest in wearable tech
- As functionality of smartphones expands, so does ownership
- Looking ahead
- Media consumption habits demand more data, the cost of mobile data plans may need to be addressed
- The presence of smart speakers grows in Canadian homes
- Consumer engagement with tech is above average
-
- Figure 33: Category engagement – Technology and communications, January 2018
- Key consumer findings
Category Review – Transportation
-
- What you need to know
- What it means
- The transport sector will continue to see healthy growth
-
- Figure 34: Best- and worst-case forecast value sales of the transportation market, at current prices, 2012-22
- What to watch
- Automakers partner up to stay up-to-date on tech offerings
- Tech features become more affordable
- Looking ahead
- Canadians are considering hybrid or electric vehicles
- SUVs and crossovers are gaining ground
- Men and parents are more engaged with the automotive category
-
- Figure 35: Category engagement – Automotive, January 2018
- Key consumer findings
Category Review – Personal Finance
-
- What you need to know
- What it means
- Personal finance expenditure forecast to grow steadily
-
- Figure 36: Best- and worst-case forecast value sales of personal financial services, at current prices, 2012-22
- What to watch
- Robo-advisors: immense potential but there could be challenges for full-service providers
- FinTech and life insurance (InsurTech)
- Looking ahead
- The potential impact of cryptocurrencies
- How insurers can prepare for driverless cars
- Smart homes and insurance
- Key consumer findings
- Credit and cash are the most popular payment methods
- Around half of Canadians have a RRSP/RRIF and/or TFSA
- Auto, home and life insurance have the highest ownership rates
Category Review – Housing
-
- What you need to know
- What it means
- Housing sector to experience continued growth
-
- Figure 37: Best- and worst-case forecast value sales of housing, at current prices, 2012-22
- Housing market starting to cool
- What to watch
- New stress test rules pushing borrowers to private lenders
- Looking ahead
- Stress tests, foreign buyers and higher rates likely to impact housing market in 2018
- CMHC says national housing market still “highly vulnerable” for 6th straight quarter
- Key consumer findings
- Almost half of renters view it as a lifestyle choice
- Younger women struggle to save enough for a down payment
- One in three 18-34s intends to buy a home in the next three years
- Quebecers relatively less inclined to feel that home ownership for first-time buyers has become unaffordable
- Young male mortgage holders most likely to be impacted by higher rates
- 18-24s are most open to borrowing from private lenders
The Consumer – What You Need to Know
-
- Consumers are starting to treat themselves
- Canadians are optimistic that they will achieve their financial goals
- Freedom and equality are the defining values of Canadians
- Diversity is impacting the meaning of “mainstream” Canada
Perceived Financial Health and Discretionary Spending
-
- Perceived financial health improves moving into 2018
-
- Figure 38: Perception of financial health, January/February 2015-18
- Improved financial health means more room for treats
-
- Figure 39: How extra money is spent, January 2018
- Figure 40: How extra money is spent (selected categories), 2018 vs 2017, January 2018
- Parents are spending on experiential categories
-
- Figure 41: Discretionary spending on entertainment, dining out and travel, parents with under-18s at home vs non-parents, January 2018
- Gains to be had by appealing to the whole family
-
- Figure 42: Share Reel Love for Father's Day, June 2017
- iGen women are treating themselves
-
- Figure 43: Extra money spent on personal treats, women 18-24 vs overall, January 2018
- Fast fashion and foodservice
Financial Goals and Attaining the “Canadian Dream”
-
- Canadians feel their financial goals are attainable
-
- Figure 44: Agreement with ‘my financial goals are achievable’, by age, income and perceived financial health, January 2018
- The Canadian version of the “American Dream” is within reach
-
- Figure 45: The Canadian dream, January 2018
- There is a Canadian equivalent of the “American Dream”, but with a community focus – in their words
- Women may be facing more challenges to attaining financial goals
-
- Figure 46: Believe in the ability to achieve selected elements of the Canadian Dream, women 25-34 vs men 25-34, January 2018
- Women need more financial support through the various life stages
- Retailer loyalty programs that deliver instant gratification will see more traction amongst young women
What Does It Mean to be Canadian?
-
- Freedom and equality are core Canadian values
-
- Figure 47: Canadian values, January 2018
- What it means to be Canadian – In their words
- Values vary by life stage
- Featuring diversity and emphasizing equality will resonate with iGens
-
- Figure 48: Rating equality and diversity as the most important ‘Canadian values’, 18-24s vs overall, January 2018
-
- Figure 49: Wonderful World, September 2017
- Boomers will respond to messages touting integrity and hard work
-
- Figure 50: Rating integrity and hard work as the most important ‘Canadian values’, over-55s vs overall, January 2018
- Consumers feel they have freedom to speak their mind
-
- Figure 51: Perceived ability to speak freely, January 2018
-
- Figure 52: Heineken | Worlds Apart | #OpenYourWorld, April 2017
- The is no clear definition of “mainstream” Canada
- The changing demographic makeup is shifting the concept of “mainstream” Canada
-
- Figure 53: Rating ‘diversity’ as a most important Canadian value, by age, January 2018
- Figure 54: Agreement with ‘I am part of ‘mainstream Canada’, by age, January 2018
Deep Dive: Experiences vs Things
-
- Category engagement reflects the quest for experiences
-
- Figure 55: Category engagement – All categories, January 2018
- Canadians value experiences over things – particularly over-55s
-
- Figure 56: Agreement with ‘I value experiences more than things’, by age, January 2018
- Emphasizing the value placed on experience is important to connecting with Boomers
- The enjoyment of experiences over things is also about family – in their words
- Opportunities to connect with Boomers by marketing family experiences
- Women are also keener on experiences
-
- Figure 57: Agreement with ‘I value experiences more than things’, women vs men, January 2018
- Enhancing the social side of experiences will resonate with women
Appendix – Data Sources and Abbreviations
-
- Data sources
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
-
-
- Figure 58: Total Canada sales and forecast of overall expenditures, at inflation-adjusted prices, 2012-22
- Figure 59: Total Canada sales and forecast of food (at home), at inflation-adjusted prices, 2012-22
- Figure 60: Total Canada sales and forecast of food – Dining out market, at inflation-adjusted prices, 2012-22
- Figure 61: Total Canada sales and forecast of alcoholic beverages (at home) market, at inflation-adjusted prices, 2012-22
-
- Figure 62: Total Canada sales and forecast of alcoholic beverages (out of home) market, at inflation-adjusted prices, 2012-22
- Figure 63: Total Canada sales and forecast of non-alcoholic beverages (at home) market, at inflation-adjusted prices, 2012-22
- Figure 64: Total Canada sales and forecast of beauty and personal care market, at inflation-adjusted prices, 2012-22
- Figure 65: Total Canada sales and forecast of OTC healthcare remedies market, at inflation-adjusted prices, 2012-22
-
- Figure 66: Total Canada sales and forecast of household care market, at inflation-adjusted prices, 2012-22
- Figure 67: Total Canada sales and forecast of clothing, footwear and accessories market, at inflation-adjusted prices, 2012-22
- Figure 68: Total Canada sales and forecast of technology and communications market, at inflation-adjusted prices, 2012-22
- Figure 69: Total Canada sales and forecast of vacations and tourism market, at inflation-adjusted prices, 2012-22
-
- Figure 70: Total Canada sales and forecast of leisure and entertainment market, at inflation-adjusted prices, 2012-22
- Figure 71: Total Canada sales and forecast of home and garden market, at inflation-adjusted prices, 2012-22
- Figure 72: Total Canada sales and forecast of transportation market, at inflation-adjusted prices, 2012-22
- Figure 73: Total Canada sales and forecast of financial services market, at inflation-adjusted prices, 2012-22
-
- Figure 74: Total Canada sales and forecast of housing market, at inflation-adjusted prices, 2012-22
-
Back to top