Canadians Are Spending More on Groceries and Increasingly Turning to Pay Later to Keep up

Canadians Are Spending More on Groceries and Increasingly Turning to Pay Later to Keep up

Pay Later adoption jumped 109% over the past year as shoppers made more frequent grocery trips and shifted toward discount retailers

As grocery prices continue to strain household budgets across Canada, many Canadians are changing how they shop and manage their money to keep up.

The Grocery Gap Report, conducted by KOHO, found that average grocery spending per user increased approximately 5% year-over-year, rising from $261 to $275 per month. The increase was driven by both larger baskets and more frequent trips to the grocery store.

Over the same period, KOHO Pay Later adoption more than doubled, rising 109%, meaning that Canadians are opting for a buy-now-pay-later option for essential items like groceries. Trips to discount grocery retailers, like No Frills or Giant Tiger, also increased. Though different behaviours, both point to Canadians actively seeking ways to stretch their grocery budgets. The findings point to a clear pattern: Canadians are making deliberate adjustments to manage rising food costs, but grocery spending continues to climb.