In a significant shift in consumer behavior, Canadian grocers are ramping up their offerings of ready-made meals, driven by the increasing demand for convenience amidst tightening budgets. As Canadians grapple with rising living costs, they are turning to grocery stores for affordable meal solutions that often undercut restaurant prices.

According to Carman Allison, vice-president of business development at NielsenIQ Canada, grocers are expanding their ready-to-eat options beyond traditional staples like rotisserie chicken and pasta salads. The aim is to attract budget-conscious shoppers who view these meals as a more economical choice compared to dining out. "Retailers are realizing they can be a destination for many consumers," he explained, highlighting the competition grocers face against restaurants and fast food establishments.

In fact, a staggering 92% of Canadians reported purchasing a meal from grocery stores over the past year. As Allison noted, grocery stores present a viable alternative to dining at restaurants, offering prepared meals without the additional burden of tipping. Moreover, the variety of ready-made options has grown tremendously; consumers can now opt for sushi, jerk chicken, chicken korma, and breakfast sandwiches—all conveniently available for quick consumption or easy preparation at home.

The trend gained momentum as inflation hemmed in consumer spending during and after the pandemic. Jana Sobey, senior vice-president of fresh merchandising at Sobeys, mentioned that shoppers increasingly turned to pre-made meals as a middle ground between the higher costs of eating out and the time-consuming process of home cooking. This growing preference appears to be enduring, as evidenced by ongoing sales growth for these prepared options.

While inflation rates have stabilized around 2%, the prices of many items remain elevated compared to years past. Consumers are still seeking deals, and rising costs in other sectors—including potential impacts from U.S. trade tensions—may keep them vigilant in their spending habits.

Market research from Mintel indicates a notable increase in the frequency with which Canadians purchase ready-made meals, rising from 62% in 2022 to 66% in 2024. On average, Canadians spent approximately $3.6 billion on grocery store meals last year, equating to around 420 million meals at a cost of $8.55 each. The balance between economical and convenient options means consumers are willing to invest a bit more for the guarantee of a prepared meal, making grocery store dining a compelling choice.

Major grocers like Sobeys are responding to this trend by diversifying their meal selections, particularly in multicultural cuisines, which has seen significant success. In a bid to improve quality and support operations, Sobeys has set up centralized kitchens for complex meal preparations, enhancing the offerings of items like soups prepared in-house without preservatives.

Allison emphasizes that ready-made meals also serve as a distinctive feature that differentiates full-service grocery stores from discount chains, which typically have fewer ready-to-eat options. As Canadians gravitate toward discount outlets for staples, there's ample opportunity for traditional grocers to attract customers with unique, high-quality products.

At Loblaw-owned Fortinos, ready-made meals are integral to their business strategy. Since launching their Pane Fresco program in 2011, they have expanded their meal offerings significantly. Loblaw is also investing in ready-to-eat products for its discount stores, such as Maxi in Quebec, where they've collaborated with celebrity chef Jonathan Garnier to create meals priced under $20, including both fresh and frozen options.

While dinner has historically been the main focus for ready-made meals, experts suggest that there is considerable potential for grocers to explore lunch and breakfast options as more Canadians resume in-office work. As the market for ready-made meals continues to grow, the emphasis on adaptability and convenience will likely shape the choices of both consumers and retailers moving forward.

Stay tuned for more updates on this culinary trend that is reshaping the way Canadians eat!