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Canadian Lifestyles - Canada - April 2015

Published By :

Mintel

Published Date : Apr 2015

Category :

Lifestyle

No. of Pages : 151 Pages


While the drop in oil prices was expected to give consumers extra cash for spending on other items, the record-high level of household debt is top of mind among Canadian consumers leading them to adopt a slightly more conservative approach to spending: focusing on paying off debts and making cutbacks in many areas. There is a glimmer of hope for retailers, however, with consumers still looking to treat themselves to long- and short-term rewards, creating a mood of ‘sensible spending’ among Canadian consumers for 2015.
Table of Content

Introduction

Definition
Abbreviations

Executive Summary

The people
The economy
The consumer
Perceived cutbacks centre on leisure, food and drinks outside the home
Figure 1: Perceived changes in spending in 2014 compared to prior years, February 2015
Canadian consumers are looking for balance: spending priorities are a mix of short-term treats and long-term goals
Figure 2: Where extra money is spent, February 2015
Personal goals of Canadians in 2015 reflect a quest to find balance
Figure 3: Personal goals, February 2015
Canadians aim to adopt a healthy lifestyle in 2015
Figure 4: Health and wellness goals, February 2015
Canadians take a critical eye to online reviews though they do influence decisions
Figure 5: Attitudes towards online opinions, February 2015
Canadian consumers do their research, using user review and independent review sites most
Figure 6: Purchase research sources, February 2015
What we think

Canada in 2015 – The People

Key points
Demographic and social trends impacting the population
Canadian population count
Figure 7: Share of population of Canada, by territory/province, 2014
Figure 8: Population of Canada, by province, 2010-20
Canada’s population is ageing and will continue to do so in the coming years
Figure 9: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
Births and birth rates have slowed in recent years
Figure 10: Annual births and birth rate*, 1981-2011
Figure 11: Fertility rate, by age group (per 1,000 women), 2001-11
Immigration and Ethnic Diversity in Canada
Figure 12: Region of birth of immigrants, by period of immigration, Canada, 2011
The changing family structure
Growth of the LGBT community
Figure 13: Distribution and percentage change of census families, by family structure, 2001-11
Most Canadian mothers are married or coupled, with three quarters being married to an opposite-sex partner
Figure 14: Parenting situation among Canadian mothers, August 2014

Canada in 2015 – The Economy

Key points
Economic overview
Overall negative impact of lower oil prices on the Canadian economy
Figure 15: Canada’s GDP (% change), by quarter, Q4 2008-Q4 2014
Figure 16: Canadian interest rates, January 2005-January 2015
Figure 17: Household disposable income and savings rate in Canada, Q4 2008-Q1 2014
Canada’s employment rate has been steady, but age is impacting labour force participation
Figure 18: Canada’s unemployment rate, by gender, January 2008-January 2015
Figure 19: Labour participation rate, January 2007-January 2015
Impact of interest rates, inflation and exchange rates
Figure 20: Exchange rate (CAD>USD/GBP), January 2008-January 2015
Wealth distribution in Canada
Figure 21: Canada median net worth, by province, 2012
Household debt in Canada
Consumer confidence may waver with falling oil prices
Figure 22: Consumer Confidence Index, monthly, January 2008-January 2015

Expenditure Overview

Key points
Total Canadian consumer expenditures 2014
Figure 23: Total Canada consumer expenditure and fan chart forecast, at current prices, 2014
Outlook for the next five years
Figure 24: Total Canadian consumer expenditure and fan chart forecast, at current prices, 2009-19

Food (at-home) Consumption

Key points
What we think
Discounting tempered growth of food sales
Figure 25: Total Canadian consumer expenditure on food (at home), at current prices, 2009-14
Dollar sales forecasted to grow in heavy discounting environment
Figure 26: Best- and worst-case forecast value sales of the food (at home) market, at current prices, 2009-19
Most Canadians believe they are paying the same for food as in prior years
Figure 27: Changes in spending habits – food (at home) 2014, February 2015

Dining Out

Key points
What we think
Inflation has impacted food costs, hitting groceries harder, bringing benefits to the foodservice sector
Figure 28: Total Canadian consumer expenditure on food – dining out, at current prices, 2009-14
The foodservice market will continue to show positive growth in the next few years
Figure 29: Best- and worst-case forecast value sales of the food – dining out market, at current prices, 2009-19
Change in spending habits
Figure 30: Changes in spending habits – food – dining out 2014, February 2015

Alcoholic Beverages (at home)

Key points
What we think
Growth of in-home alcoholic beverage sales driven by wine and spirits
Figure 31: Total Canadian consumer expenditure on alcoholic beverages (at home), at current prices, 2009-14
The next few years will see steady, but slower growth
Figure 32: Best- and worst-case forecast value sales of the alcoholic beverages (at home) market, at current prices, 2009-19
Only 10% of consumers are spending more, but opportunities for growth exist
Figure 33: Changes in spending habits – alcoholic beverages (at home) 2014, February 2015

Alcoholic Beverages (out of home)

Key points
What we think
Increase in sales of on-premise alcoholic beverages trailing in-home options and overall foodservice growth
Figure 34: Total Canadian consumer expenditure on alcoholic beverages (out of home), at current prices, 2009-14
Sales of alcoholic drinks at foodservice forecasted to grow at a steady pace
Figure 35: Best- and worst-case forecast value sales of the alcoholic beverages (out of home) market, at current prices, 2009-19
Opportunity to target consumers who are spending more on alcohol when dining out
Figure 36: Changes in spending habits – alcoholic beverages (out of home) 2014, February 2015

Non-alcoholic Beverages (at home)

Key points
What we think
Slow but steady growth for beverages at home
Figure 37: Total Canadian consumer expenditure on non-alcoholic beverages (at home), at current prices, 2009-14
Modest growth to continue
Figure 38: Best- and worst-case forecast value sales of the non-alcoholic beverages (at home) market, at current prices, 2009-19
Few Canadians indicate they are spending more on beverages
Figure 39: Changes in spending habits – non-alcoholic beverages (at home) 2014, February 2015

Beauty and Personal Care

Key points
What we think
Canada’s beauty and personal care market saw slow but steady growth in recent years
Figure 40: Total Canadian consumer expenditure on beauty and personal care, at current prices, 2009-14
The forecast for the sector is of continued slow but steady growth
Figure 41: Best- and worst-case forecast value sales of the beauty and personal care market, at current prices, 2009-19
A larger share of Canadians spending less than more on beauty and personal care
Figure 42: Changes in spending habits – beauty and personal care 2014, February 2015

OTC Healthcare Remedies

Key points
What we think
The sector has been growing at a moderate pace since 2009
Figure 43: Total Canadian consumer expenditure on OTC healthcare remedies, at current prices, 2009-14
Medications, vitamins and supplements will contribute to slow growth
Figure 44: Best- and worst-case forecast value sales of the OTC healthcare remedies market, at current prices, 2009-19
The majority of consumers spending the same on healthcare products
Figure 45: Changes in spending habits – OTC healthcare remedies 2014, February 2015

Household Care

Key points
What we think
Sector growth has been slow and steady
Figure 46: Total Canadian consumer expenditure on household care, at current prices, 2009-14
Slow growth predicted for the next five years
Figure 47: Best- and worst-case forecast value sales of the household care market, at current prices, 2009-19
Change in spending habits
Figure 48: Changes in spending habits – household care 2014, February 2015

Clothing, Footwear and Accessories

Key points
What we think
Canadians’ spending on clothing and accessories has been on the rise
Figure 49: Total Canadian consumer expenditure on clothing, footwear and accessories, at current prices, 2009-14
Canadians will continue to spend on clothing and accessories
Figure 50: Best- and worst-case forecast value sales of the clothing, footwear and accessories market, at current prices, 2009-19
Change in spending habits
Figure 51: Changes in spending habits – clothing, footwear and accessories 2014, February 2015

Technology and Communications

Key points
What we think
Strong growth seen in 2014 after plateau
Figure 52: Total Canadian consumer expenditure on technology and communications, at current prices, 2009-14
Growth of the sector is predicted to continue
Figure 53: Best- and worst-case forecast value sales of the technology and communications market, at current prices, 2009-19
Change in spending habits
Figure 54: Changes in spending habits – technology and communications 2014, February 2015

Vacations and Tourism

Key points
What we think
Domestic tourism the main driver of growth
Figure 55: Total Canadian consumer expenditure on vacations and tourism, at current prices, 2009-14
Lower Canadian dollar may fuel an increase in domestic travel
Figure 56: Best- and worst-case forecast value sales of the vacations and tourism market, at current prices, 2009-19
Change in vacation and tourism spending habits
Figure 57: Changes in spending habits – vacations and tourism 2014, February 2015

Leisure and Entertainment

Key points
What we think
Lack of disposable income a notable barrier to participation
Figure 58: Total Canadian consumer expenditure on leisure and entertainment, at current prices, 2009-14
Negligible growth expected for entertainment and leisure market
Figure 59: Best- and worst-case forecast value sales of the leisure and entertainment market, at current prices, 2009-19
Change in leisure and entertainment spending habits
Figure 60: Changes in spending habits – leisure and entertainment 2014, February 2015

Home and Garden

Key points
What we think
The sector has seen steady increases in expenditure
Figure 61: Total Canadian consumer expenditure on home and garden, at current prices, 2009-14
Growth continues to slow in the next few years
Figure 62: Best- and worst-case forecast value sales of the home and garden market, at current prices, 2009-19
Change in spending habits
Figure 63: Changes in spending habits – home and garden 2014, February 2015

Transportation

Key points
What we think
Expenditures on this sector have seen healthy growth
Figure 64: Total Canadian consumer expenditure on transportation, at current prices, 2009-14
The growth continues
Figure 65: Best- and worst-case forecast value sales of the transportation market, at current prices, 2009-19
Change in spending habits
Figure 66: Changes in spending habits – transportation 2014, February 2015

Personal Finance

Key points
What we think
Personal finance expenditure forecast to grow steadily
Figure 67: Total Canadian consumer expenditure on financial services, at current prices, 2009-14
Continued growth expected for the personal financial services industry over the next few years
Figure 68: Total Canadian consumer expenditure and fan chart forecast of personal financial services, at current prices, 2009-19
Healthy ownership rates of savings, investments, insurance and lending products ensure a strong customer base for personal financial services products
Canadians somewhat pessimistic about their personal finances

Housing

Key points
What we think
Housing costs have been on the rise
Figure 69: Total Canadian consumer expenditures on housing, at current prices, 2009-14
Shelter costs and affordability
Costs expected to outpace inflation through 2018
Figure 70: Canadian consumer expenditure and fan chart forecast of housing, at current prices, 2009-19
Population and growth
Recent economic shifts should have a positive impact

The Consumer – Changes in Spending in 2014

Key points
Perceived cutbacks centre on leisure, food and drinks outside the home
Figure 71: Perceived changes in spending in 2014 compared to prior years, February 2015
Figure 72: Difference between perceived spend (more – less) in 2014 compared to prior years, February 2015
The impact of over-45s
Figure 73: Select difference between perceived spend (more – less) in 2014 compared to prior years, by age, February 2015
Acknowledgement of continued spend on non-essentials
Young adults, parents, Chinese Canadians and LGBTs most likely to perceive increase in spending in 2014
Under-35s more likely to perceive greater spend across most categories
Figure 74: Perceived changes in spending in 2014 compared to prior years, by age, February 2015
Parents note increase on home-centred and tech items
Figure 75: Perceived changes in spending in 2014 compared to prior years, by children in the household, February 2015
Chinese Canadians cite greater spend on eating out and technology
Figure 76: Perceived changes in spending in 2014 compared to prior years: Chinese Canadians vs overall population, February 2015
LGBT community spent more on beauty, healthcare and clothing
Figure 77: Perceived changes in spending in 2014 compared to prior years: LGBT vs overall population, February 2015

The Consumer – Where Extra Money is Spent

Key points
Canadian consumers are looking for balance: spending priorities a mix of short-term treats and long-term goals
Figure 78: Where spend extra money, February 2015
Demographics impact on where consumers choose to focus discretionary spending
Variations by gender and age
Figure 79: Where spend extra money, by age, February 2015
Investing, eating out and lengthy vacations are tops for Chinese Canadians
Figure 80: Where spend extra money: Chinese Canadians vs overall population, February 2015
LGBT prioritize entertainment
Figure 81: Where spend extra money: LGBT vs overall population, February 2015

The Consumer – Personal Goals in 2015

Key points
Personal goals of Canadians in 2015 reflect a quest to find balance
Figure 82: Personal goals, February 2015
Some variations in personal goals by demographics

The Consumer – Health and Wellness Goals in 2015

Key points
Finding balance: Canadians aim to adopt a healthy lifestyle in 2015
Figure 83: Health and wellness goals, February 2015
Figure 84: Repertoire of health and wellness goals, February 2015
Women are aiming high on health and wellness goals
Figure 85: Select health and wellness goals, by gender, February 2015
Health and wellness may be a lower priority for Quebecers
Figure 86: Select health and wellness goals: Quebec vs overall population, February 2015
Active lifestyle of Chinese Canadians leads to an increased focus on sleep and vitamins
Figure 87: Select health and wellness goals: Chinese Canadians vs overall population, February 2015
Mediation/yoga and alcohol reduction are priorities for LGBTs
Figure 88: Select health and wellness goals: LGBT vs overall population, February 2015

The Consumer – Attitudes towards Online Opinions

Key points
Canadians take a critical eye to online reviews though they do influence decisions
Figure 89: Attitudes towards online opinions, February 2015
There is strength in numbers
Word-of-mouth recommendations carry more weight over online reviews for some and spur on further research for others
Value placed on online reviews stems from the way they perceive the nature of online reviews
Variations by demographics

The Consumer – Impact of Online Opinions on Purchases

Key points
Canadian consumers do their research, using user review and independent review sites most
Figure 90: Purchase research sources, February 2015
Variations by demographics
Bigger purchases lead to more research
Figure 91: Opinions sought, by category, February 2015
Likelihood to seek out opinions for smaller purchases is spurred by interest in categories
Men more likely to seek online opinions for smaller, daily purchases
The influence of age is seen across parents, immigrants and LGBT
Figure 92: Opinions sought, by category, by age, February 2015
The active consumerism of Chinese Canadians leads to over-indexing across all categories
Figure 93: Opinions sought, by category: Chinese Canadians vs overall population, February 2015

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