What to know
- KOHO’s Grocery Gap Report found the average grocery transaction in Ontario rose 2.1 per cent over the past year.
- The use of buy now, pay later services for groceries more than doubled between May 2025 and May 2026.
- Canadians are increasingly choosing discount grocery stores while income-related indicators remain largely unchanged.
- Toronto shoppers told NOW Toronto they are changing their shopping habits to cope with higher food prices.
A new report suggests grocery prices in Canada are continuing to rise, prompting more shoppers to change where they buy food and, in some cases, rely on buy now, pay later options to cover the cost.
The findings come from Canadian financial technology company KOHO’s latest Grocery Gap Report, which analyzed grocery spending and financial behaviour among its members between May 1, 2025, and May 31, 2026.
@nowtoronto Do Torontonians feel grocery prices are still rising? We asked shoppers what they're noticing at checkout. #Toronto ♬ original sound – Now Toronto
The report found that the average grocery transaction in Ontario increased 2.1 per cent over the year, rising from $41.78 to $42.65.
More Canadians are using buy now, pay later
As food prices climbed, the report found a sharp increase in the number of Canadians using buy now, pay later services.
According to KOHO, adoption of its Pay Later feature more than doubled during the study period, increasing from 0.82 per cent of users in May 2025 to 1.71 per cent in May 2026.
The report says usage spiked during the holiday season and remained elevated throughout 2026.
Meanwhile, income-related indicators showed little growth. Direct deposit adoption among KOHO users remained relatively flat, declining slightly from 4.47 per cent to 4.31 per cent, suggesting incomes are not keeping pace with rising grocery costs.
Shoppers are choosing discount grocery stores
The report also found Canadians are increasingly opting for discount grocery retailers.
Monthly visits to discount grocers rose 4.1 per cent year over year, increasing from 2.75 to 2.87 trips per user.
By comparison, visits to premium grocery stores remained virtually unchanged at 2.60 trips per user per month.
Torontonians say they’re feeling the squeeze
Several Toronto residents told Now Toronto they have noticed grocery prices climbing and have adjusted their shopping habits to cope.
Nicole said her grocery bill has increased by roughly 30 per cent since the pandemic.
“I’ve been doing more online grocery shopping so I can see what the total is before I check out,” she said.
She also relies on meal planning to reduce impulse purchases.
“I do a lot of meal planning, so I have a bit more stability in my week-to-week grocery shopping. I think that, combined with online grocery shopping, has really helped me curb some of the impulse decisions at checkout,” she said.
Another shopper, Ibrahim, said his weekly grocery bill has jumped significantly.
“My weekly groceries were about $90 last year. Now it’s about $150,” he said.
He added that it has become increasingly difficult to find ways to save money and hopes grocery prices eventually begin to fall.
Milan said he has also noticed grocery costs continue to climb and has started looking for more flexible payment options.
“But I’ve just kind of accepted it,” he said.
