Grocery inflation shifts brand loyalty

Inflation continues to reshape how Canadians shop in 2025, but the impact isn’t uniform across categories.

On one side, private label is gaining traction as price-sensitive shoppers seek relief from rising bills. Retailers are using scale and efficiency to keep these products affordable, and consumers are rewarding them with loyalty at the checkout.

On the other side, something very different is happening: premium multicultural brands are holding their ground. Even in the face of inflation, shoppers aren’t willing to compromise on authenticity, tradition, and cultural taste. For many households, these products aren’t just groceries — they’re identity and connection.

📊 A recent Nielsen report identified that ethnic grocery categories are growing 8% YoY, outpacing mainstream staples. That growth tells us something powerful: in times of financial pressure, value isn’t defined by price alone. It’s defined by meaning, heritage, and the experience of food that feels real.

The lesson for brands?

• Competing on price alone is a race to the bottom.

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  Competing on authentic value builds resilience, even in inflationary markets.

👉 Inflation squeezes, but culture-led value sticks.