Locally sourced food is a financial burden for young individuals, as indicated by recent research findings.
Generation Z's Strange Dilemma: Local or Affordable?
Generation Z, born between 1997 and 2012, is making waves in the food industry with their peculiar purchasing patterns. Contradicting their frequent claims of buying local produce, an astounding number of this generation seems to be dipping into their pockets or borrowing money to purchase food. This peculiarity, as unveiled by a Dalhousie University study, sets Gen Z apart from other generations.
A shocking 40% of surveyed young Canadians in the spring of 2025 admitted to using their savings or credit to buy food. Generation Z, it appears, leads the pack when it comes to using financial resources for food purchases, with millennials trailing closely behind (35%). Gen X and baby boomers followed suit with 31% and 29%, respectively. The oldest generation, those born before 1946, were the least likely to lean on savings or credit, at a mere 12%.
In a strange twist of events, more than half of Gen Z respondents said they "often" or "always" buy local food. Sylvain Charlebois, co-author of the semi-annual report on the food consumption index, summarized their paradoxical behavior: "Generation Z buys local, but at the same time, we see that this generation has been financially drained more than others."
However, a glimmer of hope makes an appearance. Between the spring and the fall surveys, the percentage of young self-proclaimed local food aficionados using savings or borrowing to buy food decreased by eight percentage points (from 46% to 38%). This could suggest either improved financial resilience or the exhaustion of savings, which could potentially lead to financial hardships for the Canadian population.
Yet, Gen Z's fondness for local food seems to indicate a strong interest in sustainability, local economies, and transparency in food systems. Their efforts to support local businesses, despite rising food prices, indicate a desire to maintain trust in their local communities.
If you think your grocery bill has taken a hike, you're not alone. According to the study, 8 in 10 Canadians surveyed reported that food prices had increased the most among their daily expenses, surpassing both housing and transportation costs. This inflation fear has sparked changes in consumer habits, with some opting for less "non-essential" food items, while others choose to stock up on goods in bulk.
Grocery sales have remained stagnant since January 2024, despite the rising prices. The study concludes that this decrease is likely due to concerns about affordability. Interestingly, while Canadians seem to be spending less on food per capita, they appear to be dishing out more on dining out. Sylvain Charlebois predicts that further studies should explore this shift in spending habits.
Despite the rise in food costs, trust in grocery stores remains high. Canadians are not quick to point fingers at major chains or local grocers but rather prefer to support local businesses. This focus on local purchasing might help to distract from broader inflationary issues.
For more insights, delve into "Are we really less wealthy than our parents?" and "The grocery basket should still be more expensive in 2025."
[1] Food prices are on the rise[2] Gen Z's nutrition preferences[3] Omnichannel shopping behaviors[4] Use of "buy now, pay later" among Gen Z[5] Digital shopping trends in Canada
- Sylvain Charlebois, observing the spending habits of millennials and Gen Z, muses, "Despite the group's strong interest in local food and sustainability, French millennials and Generation Z seem to be spending slightly more than others due to the slightly higher prices of local produce."
- The finance expert, reflecting on the personal-finance implications of Gen Z's lifestyle, notes, "Food-and-drink expenses have become a significant portion of the living expenses for many French millennials and Gen Z individuals, who often resort to using savings or credit to meet their daily food needs."
- In an attempt to reconcile the issues of affordability and sustainable food-and-drink choices, a French grocery chain considers adopting the 'buy now, pay later' solution, popular among Gen Z consumers, to make local produce more financially accessible.
- To remain competitive, French supermarket chains are keen to understand the omnichannel shopping behaviors of Gen Z customers, as revealed in a recent Canadian study, and are looking for ways to adapt their service offerings accordingly.
- Recognizing the digital shift in consumer preferences, some local food-and-drink businesses in France experiment with incorporating online selling platforms and digital marketing strategies to cater to the Gen Z population and increase their revenue.
