Canadians are spending more at the grocery store—and increasingly turning to flexible payment options to keep up.
A new Grocery Gap Report from 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 grocery trips.
At the same time, adoption of KOHO Pay Later more than doubled, climbing 109% between May 2025 and May 2026. KOHO says the growth points to rising demand for financial flexibility as Canadians navigate higher everyday costs.
The report is based on grocery spending and financial behaviour data from more than 173,000 KOHO members across Canada between May 2025 and May 2026, with a separate 17,400-member longitudinal cohort used to validate year-over-year spending trends.
“One of the most interesting findings is that affordability pressures are changing behaviour, but not always in predictable ways,” said Faye Lucas, Head of Consumer Trust at KOHO. “The findings make it clear that grocery costs are rising faster than Canadians can adapt. People are changing where they shop, how often they go, and how often they pay and yet the spending keeps climbing.”
According to KOHO, average grocery basket size increased 2.4%, from $44.58 to $45.65 per transaction, while grocery trip frequency increased 2.9%, from 5.86 trips per month to 6.03 trips per month.
Canadians are also changing where they shop. Trips to discount grocery retailers increased 4.1% year-over-year, while trips to premium grocery retailers remained essentially flat, increasing just 0.3%.
Younger Canadians appear to be feeling the grocery squeeze most sharply. KOHO found that Canadians aged 18 to 24 recorded grocery basket growth of 5.4% year-over-year, more than double the national average of 2.4%. Canadians aged 35 to 44, meanwhile, continued to record the highest average grocery basket, likely reflecting household and family spending.
KOHO’s report also suggests that household budget pressure extends beyond groceries. Spending on food delivery increased 9% year-over-year across major platforms including DoorDash, Uber Eats, and SkipTheDishes, while spending on eating and drinking out increased 4% and retail spending increased 6%.
The Toronto-based fintech, which says its financial tools are used by more than 2.5 million people across Canada, also announced a 10-Year Grocery Giveaway tied to the report. One Canadian household will receive $500 per month toward groceries for 10 years, representing a total prize value of $60,000.
“Groceries are one of the most persistent financial pressures Canadians face,” said Daniel Eberhard, Founder and CEO of KOHO. “The 10-Year Grocery Giveaway is our way of putting meaningful support behind an expense that households cannot simply opt out of.”
The contest runs from June 15 to July 31, 2026 and is open to new and existing KOHO members across Canada, excluding Quebec residents, who are 18 years of age or older. No purchase is necessary to enter or win.
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