The Economics of Student Nutrition

Ottawa, October 28 – University life brings unique challenges, balancing studies, work, and social life is no easy feat. Yet, one often-overlooked hurdle is managing food expenses. With food delivery apps, rising grocery prices, and prepared meal kits gaining popularity, students are making choices that impact their wallets and health, raising questions about how convenience and rising costs shape student finances.

How are today’s students, particularly those at the University of Ottawa, navigating rising grocery prices, delivery trends, and the convenience of pre-prepared meal kits? Let’s take a closer look and break it down.

Food Delivery: Convenience at a High Price

Food delivery has become a staple for many students, providing an easy way to grab a meal amidst their busy schedules. However, this convenience comes at a significant financial cost. A Maru Public Opinion survey conducted on behalf of TD Bank found that 65% of Canadian students consider themselves financially unstable, with 45% struggling to cover basic needs like food and housing (Reale-Chin, 2024). For students frequently using food delivery apps like Uber Eats, DoorDash, and SkipTheDishes, these services can quickly drain their finances.

For a typical University of Ottawa student, a food delivery order may cost around CAD 25 per meal. Ordering twice a week can add up to $200 per month or $1,000 per semester, a considerable expense for students working with limited budgets. As Doug Hoyes, a licensed insolvency trustee, points out, the financial reality for students has shifted drastically over the years. He explains, “In the past, students might have found a summer job to cover their tuition, housing, and living costs throughout the year, but now it's not that easy" (Hoyes, 2024).

Hoyes underscores how the rising cost of living and the growing reliance on food delivery services push students further into financial instability. Compared to previous generations, today's students face higher tuition fees, expensive rent, and inflated grocery prices, leaving little room in their budgets for discretionary spending on takeout. "The reality," Hoyes adds, "is that many students simply don’t have the same earning potential they used to, and they’re relying more on student loans, parental support, or part-time jobs that often don’t pay enough to cover their day-to-day needs" (Reale-Chin, 2024). This financial pressure makes regular spending on food delivery a hidden trap that exacerbates long-term financial stress.

The Expanding Food Delivery Market in Canada

The Online Food Delivery market in Canada is experiencing rapid growth. By 2024, it is projected to generate USD 14 billion in revenue, with an annual growth rate of 6.33% from 2024 to 2029, potentially reaching USD 19.03 billion by 2029 (Statista, 2024). This surge reflects the growing demand for convenience as more Canadians—including students—turn to food delivery services to meet their daily needs.

Canada has long embraced food delivery, with over six-tenths of Canadians having used or currently using online platforms to order food (Made in CA, 2024). The pandemic played a significant role in this shift, as many people enjoyed restaurant food delivered to their homes even when they could not visit in person. Online food orders grew by 36% during the pandemic (Made in CA, 2024).

Additionally, local factors contribute to this surge. The harsh Canadian winters often lead students to stay indoors and order food rather than face the cold. During the pandemic, people increasingly opted for delivery due to safety concerns. This shift toward convenience is expected to have lasting effects on food ordering habits in Canada (Made in CA, 2024).

Grocery Prices and Financial Strain on Students

As inflation continues to impact the cost of living, grocery prices in Canada are rising, putting additional financial pressure on students. Statistics Canada reports that average tuition fees for Canadian undergraduates have been increased to $7,076 for the 2023-2024 academic year (Reale-Chin, 2024). Coupled with the increasing cost of groceries, many students are forced to stretch their budgets even further.

Staples like fresh produce and dairy products have seen substantial price hikes, pushing students towards more affordable, but often less nutritious, options. Additionally, the Grocery Delivery market in Canada is projected to reach USD 8.05 billion by 2024, growing by 13.5% in revenue by 2025 (Statista, 2024). While these services provide convenience, they come with risks, including unreliable substitutions and varying quality of delivered goods.

Meal Kits: A Convenient but Costly Alternative

Meal kits such as those offered by HelloFresh and Goodfood have gained traction among students for their convenience and simplicity. These services deliver pre-portioned ingredients, allowing students to save time on meal preparation. However, this convenience comes at a premium.

A single meal kit from HelloFresh can cost upwards of CAD 12 per serving (HelloFresh, 2024). Over time, this can add up significantly for students on a tight budget. Similarly, Goodfood offers subscription-based meal kit plans that deliver pre-prepared ingredients and recipes but at prices that may be restrictive for students (Goodfood, 2024). While meal kits save time and provide an easy way to ensure healthy eating, their cost may be less sustainable for students over the long term.

The Meal Delivery market in Canada is expected to grow, with 22.1 million users by 2029 and a projected user penetration rate of 50.8% by 2024 (Statista, 2024). The growing preference for meal kits and food delivery reflects a broader trend of convenience-driven consumption among young Canadians. Still, it also highlights this demographic's financial challenges when balancing cost and convenience.

Student Spending Habits: The Struggle to Balance Budgets

Students at the University of Ottawa and other universities across Canada need help to balance their spending habits with their financial realities. According to the TD Bank survey, 64% of students report using a budget, but only 41% stick to it consistently (Reale-Chin, 2024). Budgeting becomes even more critical for students who rely on lump-sum payments from summer jobs or student loans to make their money last through the semester.

Financial planners recommend that students open high-interest savings accounts (HISAs) to manage short-term savings. HISAs allow students to earn interest on their savings while keeping the funds accessible for essential expenses like food and rent. Mobile banking apps can help students track spending and avoid unnecessary expenses like frequent takeout orders (Reale-Chin, 2024).

Conclusion: The True Cost of Convenience

For University of Ottawa students, the actual cost of food extends beyond the grocery store. Delivery fees, meal kit subscriptions, and rising grocery prices strain students financially. With the Online Food Delivery market projected to reach USD 14.00 billion in 2024, students must weigh the convenience of these services against their budgets.

Students can alleviate some financial pressure by making minor adjustments—such as preparing meals at home more frequently, cutting back on delivery services, applying for bursaries and scholarships—and ensuring their budgets last throughout the semester.

Works Cited

Reale-Chin, Daniel. Globe and Mail. Being a Student is Getting More Expensive. 2024, https://www.theglobeandmail.com/investing/globe-advisor/advisor-news/article-being-a-student-is-getting-more-expensive-here-are-tips-for-living-on/

Statista. Online Food Delivery Market Canada. 2024, https://www.statista.com/outlook/emo/online-food-delivery/canada

Bush, Olivia. Food Delivery Statistics for Canadians. Made in CA, 2024, https://madeinca.ca/food-delivery-canada-statistics/#:~:text=Food%20Delivery%20Statistics%20for%20Canadians%20In%202019%2C%20Canadians,to%20be%20worth%20over%20%2498%20billion%20by%202027.

HelloFresh. Menus and Plans. 2024, https://www.hellofresh.ca/about/menus-and-plans?test_name=en-CA%7Cgrocery-delivery%7Cmeal-plans%7CHelloFresh&variation=en-CA%7CSEO%7Cmeal-plans&msclkid=f927dc89520f146d54b8bb979257123b

Goodfood. Subscription Plans. 2024, https://www.makegoodfood.ca/subscriptions/my-plan