Are Canadian Consumers Willing to Pay More for Locally Made Products

New data from Lightspeed Commerce shows that 91% of Canadians are currently prioritising buying Canadian products or planning to do so. That number is striking, but the real story is what happens at the checkout. The same research found that 71% of Canadians are willing to pay more for Canadian-made goods, and 76% of those people would accept a premium of 5–10%. Yet a separate PwC Canada report reveals that 62% of Canadians would still choose a lower-priced imported product over a more expensive domestic equivalent. The gap between intention and action is where the real challenge sits for any business selling locally made products.

Disclosure: Some links on this page are affiliate links. If you make a purchase through them, Britwealth may earn a commission at no extra cost to you. We only include products and services that are relevant to the topic.

91%
of Canadians are prioritising buying Canadian products or planning to
Retail Insider

71%
are willing to pay more for Canadian-made products
Retail Insider

76%
of those willing to pay more would accept a 5–10% premium
Retail Insider

75%
are willing to pay a premium for locally produced food
PwC Canada

What these figures tell me is that the will is there, but it has limits. Consumers are reading labels, researching brands, and discussing where to shop with friends and family. The Lightspeed data shows 65% are reading labels to check for Canadian origin, and 46% are actively researching trusted Canadian brands. But price remains the deciding factor for a large slice of that same group. Here’s what you actually need to know.

The scale of the shift toward buying Canadian

91% Intent to Buy Local
Nearly all Canadians are either already buying Canadian or planning to. This is not a fringe movement — it’s the mainstream position.

The 5–10% Premium Zone
Three-quarters of those willing to pay more cap the premium at 10%. Push beyond that and you lose most of the interested buyers.

The Price-Intention Gap
62% of Canadians would still pick a cheaper imported product. Good intentions don’t always survive contact with a price tag.

A Lasting Shift
74% say they’d continue buying Canadian even if U.S. tariffs were removed. This looks structural, not temporary.

When the Lightspeed report asked Canadians what “Buy Canadian” actually means to them, 72% said it means buying goods made in Canada from a Canadian retailer. Another 47% associate it with brands that embody Canadian identity. That distinction matters because it tells you where the trust sits — not just with the product, but with the seller.

Buy Canadian
Defined by 72% of consumers as goods made in Canada purchased from a Canadian retailer. Origin and retailer both matter to the average shopper.

What I tend to notice in these numbers is how specific the preference is. It’s not a vague wish — people are reading ingredients, checking labels, and talking about it. That level of engagement is unusual, and it creates real opportunity for businesses that get the details right. The digital shift in Canadian retail only amplifies this, since more shoppers are researching before they buy.

Where the price-intention gap hurts most

The PwC Canada report puts it plainly: 75% of Canadians say they are willing to pay a premium for locally produced food. But the same report finds that 62% would choose a lower-priced imported product over a more expensive domestic equivalent. That is not a contradiction — it’s a threshold. Consumers want to support local, but only up to a point.

The price threshold is real
62% of Canadians would choose a cheaper import over a domestic product. The Lightspeed data confirms that 76% of willing buyers cap their premium at 5–10%. Above that, you lose the sale.

The financial consequence for a business is straightforward. If you price your Canadian-made product 15% above an imported equivalent, you are targeting only the 24% of willing buyers who might accept that level. Everyone else either walks or buys the import. That dynamic hits hardest in categories where imported alternatives are priced aggressively — groceries, household goods, and basic apparel.

There is also a compliance angle here. The Lightspeed survey found that 29% of Canadians believe companies are mislabelling products as “Canadian.” Another 49% suspect some deception but think most companies are honest. That means nearly a third of your potential customers already doubt the claims on the label. If your product is genuinely Canadian-made, you still have to prove it to a sceptical audience. Missteps on labelling or origin claims can destroy trust quickly, and in a market where 65% of shoppers are reading labels, the scrutiny is real.

Three common missteps with local-product positioning

Pricing outside the 5–10% band without justification

The data is consistent across both reports: the acceptable premium for Canadian-made products sits between 5% and 10%. A 20% premium might feel justified by your costs, but the consumer won’t absorb it without a clear reason. The PwC report notes that 63% of Canadians would pay more for insight into a product’s origins — traceability, farming methods, ingredients. If you go above 10%, you need to explain why, not just stamp a maple leaf on the package.

Assuming “Canadian” is enough to close the sale

46% of Canadians cite domestic sourcing as their top sustainability consideration, according to PwC. That is a strong pull, but it doesn’t override price for 62% of shoppers. The mistake is treating “Canadian-made” as a magic bullet. It’s a reason to consider, not a reason to buy. You still need competitive pricing, decent quality, and convenient access. The Lightspeed data shows that 43% of Canadians would buy Canadian-made goods from any retailer, including large e-commerce platforms like Amazon. That tells you that loyalty to a specific Canadian retailer is weaker than loyalty to the idea of Canadian origin.

Ignoring the labelling trust problem

Nearly 3 in 10 Canadians think products are mislabelled as Canadian. If you sell a product that qualifies, you need to back it up — clear origin information, manufacturing location, and ingredient sourcing. The PwC survey found that 63% of Canadians would pay a premium for transparency on product origins. That is a direct signal: the more you disclose, the more trust you earn, and the more likely people are to accept your price.

This table lays out the tension between what consumers say and what they do, based on the two research sources:

→ Scroll right to see all columns

Source: Retail Insider report and PwC Canada report
Consumer statementPercentageWhat happens at checkout
Willing to pay more for Canadian-made71% (Lightspeed)62% still choose the cheaper import (PwC)
Willing to pay premium for local food75% (PwC)76% cap the premium at 5–10% (Lightspeed)
Reading labels for Canadian origin65% (Lightspeed)29% believe labels are misleading (Lightspeed)

How to price and market Canadian-made products

Stay inside the 5–10% premium window unless you can prove the difference

The most practical move is to price your Canadian-made product within 5–10% of the imported equivalent. That matches what 76% of willing buyers expect. If your costs force a higher margin, you need to invest in traceability — ingredient origins, production methods, certifications. The PwC data shows that transparency is the one factor that reliably justifies a higher price. A Shopify store can be set up to show origin information, production photos, and supplier details on the product page itself, making the case for the price without relying on packaging alone.

Use labels and certifications that third parties verify

Since 29% of consumers already doubt “Canadian” claims, third-party verification matters. Programs like “Product of Canada” or “Made in Canada” have specific regulatory definitions. Using them correctly and visibly gives you a credibility advantage over competitors who just slap a flag on the box. The 65% of shoppers who read labels will notice the difference.

Build a lasting brand, not a tariff-era reaction

74% of Canadians say they would keep buying Canadian even if U.S. tariffs were removed. That suggests the shift is not just about trade policy — it’s about identity and trust. The Lightspeed CEO called it “a real unity between the Canadian consumer and the Canadian citizen.” If you treat this as a short-term trend, you’ll miss the opportunity to build a brand that outlasts the current political climate. That means investing in consistent quality, clear communication, and reliable supply chains that can handle sustained demand.

For businesses looking to strengthen their local supply chain, automation in Canadian manufacturing is one area where efficiency gains can help offset the cost of domestic production, making it easier to stay inside that 5–10% premium band.

Frequently asked questions about buying Canadian

What qualifies as “Canadian” for most consumers?
72% of respondents define “Buy Canadian” as goods made in Canada and sold by a Canadian retailer. Origin and seller both matter.
Will consumers still buy Canadian if prices keep rising?
Only up to a point. 76% of willing buyers accept a 5–10% premium. Above that, 62% choose the cheaper import, per PwC data.
Are consumers boycotting U.S. retailers?
73% are either avoiding or planning to avoid major U.S. retailers like Walmart, Amazon, and McDonald’s. But 59% won’t stop shopping at Canadian retailers that also stock U.S. goods.
How long will the “Buy Canadian” trend last?
74% say they would continue buying Canadian even if U.S. tariffs were removed. The Lightspeed report describes it as a lasting structural shift, not a temporary reaction.
What should I do if I suspect a competitor is mislabelling products?
Competition Bureau Canada handles misleading labelling claims. Most consumers (49%) suspect some deception but believe most companies are honest. Verified labelling gives you a clear advantage.

What the lasting shift means for your business

The 91% intent number is not the headline you should build your strategy on — the 62% price-intention gap is. Canadians want to buy local, but they have limits, and they are watching closely. The businesses that win in this environment will be the ones that price within the 5–10% premium band, prove their origin claims with transparency, and treat this as a permanent change rather than a political moment. The Lightspeed CEO called it “likely a lasting phenomenon.” I think that’s the right read. The consumer behaviour has shifted, and it’s not shifting back.

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read The power of collaboration: fostering innovation in the Canadian business ecosystem.

Sources and Further Reading

The Canadian startup ecosystem: funding challenges and opportunities — Explores how local-focused businesses are navigating funding and growth in Canada’s current economic climate.

Digital transformation: why Canadian businesses are still behind and how to catch up — Covers the digital tools and strategies that help local businesses compete with larger international players.

Retail Insider (2025). Canadian consumers reshaping shopping behaviours — Lightspeed. 🔗

PwC Canada (2025). PwC 2025 Voice of the Consumer report. 🔗

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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