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CANADIAN LIFESTYLES: REDEFINING THE MAINSTREAM - CANADA - APRIL 2018

Published By :

Mintel

Published Date : Apr 2018

Category :

Lifestyle

No. of Pages : N/A

Not only are consumers currently feeling better about their financial situations this year, the majority of Canadians also feel that their financial goals are attainable. Even though there isn’t necessarily a Canadian version of the ‘American Dream’, there is a sense of optimism that exists amongst consumers. Optimism is also reflected on a societal level with Canadians being proud and diversity being embraced – so much so that it is seen as a key part of what it means to be ‘Canadian’.

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

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