Canadians are rethinking what they expect from the brands they buy from. A recent PwC report found that 76% of Canadians are concerned about the cost of food, which is well above the global average of 59%. At the same time, the Bank of Canada’s latest survey shows that consumers are increasingly substituting toward goods made in Canada and cutting spending on U.S.-made products. These two trends—rising cost sensitivity and a stronger preference for local sourcing—are reshaping what it takes for a brand to earn trust and repeat business.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
What this means in practice is that Canadian shoppers are caught between two competing impulses. They want to support local businesses and buy products made in Canada, but the rising cost of living often forces them to choose cheaper imported alternatives. Brands that understand this tension—and can communicate value without relying on price alone—are the ones that will hold consumer attention. Here’s what you actually need to know.
The central concept here is consumer awareness—the degree to which shoppers are informed about and influenced by a brand’s practices, sourcing, and values. It’s not just about knowing a brand exists; it’s about understanding what that brand stands for and whether it aligns with personal priorities.
What I tend to notice is that many business owners assume consumer awareness is purely about advertising reach. But the data suggests it’s more about trust and alignment with what shoppers actually care about. For a deeper look at how shifting trade policies affect business strategy, you might find our piece on ineffective trade policies useful.
The real cost of ignoring what consumers now expect
When a brand fails to meet the expectations that Canadian shoppers now hold, the consequences are not abstract. The PwC data shows that 75% of Canadians are willing to pay a premium for locally produced food. That figure represents a significant opportunity for brands that get it right—and a measurable loss for those that don’t. If a business sources from outside Canada without a clear reason, or fails to communicate its local connections, it’s leaving money on the table.
The Bank of Canada survey adds another layer. Consumers are not just saying they prefer Canadian goods; they are actively changing their spending patterns. The report notes that this preference for Canadian-made products is expected to persist regardless of future trade relationship changes. That means the shift is structural, not temporary. Brands that have relied on imported goods or generic marketing may find their customer base eroding steadily over time.
There is also a compliance angle. As consumer awareness grows, so does scrutiny of claims. Brands that label products as “Canadian” or “locally sourced” without meeting the legal definitions risk reputational damage and potential regulatory action. The Competition Bureau of Canada has guidelines on what constitutes “Product of Canada” versus “Made in Canada,” and getting it wrong can erode trust faster than any marketing campaign can rebuild it.
Where brands get consumer awareness wrong
Treating local sourcing as a marketing slogan rather than a supply chain decision
Many businesses add a maple leaf to their packaging or mention “Canadian” in their tagline without actually changing where they source materials. Consumers are increasingly savvy about this. The Retail Insider report highlights that the “Made Here” movement has made country of origin a trust signal. If a brand claims local roots but its supply chain is opaque, the disconnect becomes obvious. The fix involves auditing your supply chain, identifying genuine Canadian suppliers, and being transparent about what you can and cannot source locally. A business consultant can help you map this out if you’re unsure where to start.
Assuming price is the only thing that matters
The data shows a clear tension: 75% of Canadians want to pay more for local, but 62% still choose cheaper imports. Some brands interpret this as “price wins every time” and stop trying to communicate other forms of value. That’s a mistake. The 38% who do choose local despite the price difference represent a substantial and loyal customer segment. The key is to articulate what the extra cost buys—fresher ingredients, lower environmental impact, local jobs—in terms that resonate emotionally and practically. A Shopify store can be set up to highlight these values prominently in product descriptions and checkout pages.
Ignoring the shift in household structures
The Retail Insider report notes that younger consumers are opting out of traditional milestones like home ownership, marriage, and parenthood. Households are increasingly single-person or non-traditional. Brands that still market to the nuclear family model—large packs, family-sized portions, couple-focused messaging—are missing a growing demographic. Smaller format goods, subscription services, and pet-related spending are rising. The mistake is not adapting product sizing and marketing language to reflect how people actually live now.
Using AI without transparency
AI adoption is accelerating, but the Retail Insider report warns that most companies are not achieving meaningful efficiency gains from it. Worse, consumers are growing sceptical of AI-driven interactions. Brands that deploy chatbots, personalised recommendations, or automated customer service without explaining how they work or offering human fallback options risk alienating customers. The fix is to use AI as a tool for innovation and personalisation—not cost cutting—and to always maintain human oversight. An AI marketing tool can help with content creation, but it should be reviewed by a person before going live.
How to meet the new consumer expectations
Audit your supply chain for Canadian content
Start by mapping every component of your product or service. Where are raw materials sourced? Where is manufacturing done? Where does packaging come from? The goal is not necessarily to achieve 100% Canadian content overnight, but to understand your current position and identify realistic opportunities to increase local sourcing. The PwC data shows that 46% of Canadians cite domestic sourcing as their top sustainability consideration, so even incremental improvements can be worth communicating. Document your findings and be prepared to share them with customers who ask.
Communicate value beyond price
Since 62% of Canadians will still choose cheaper imports, your messaging must address the value gap directly. This means explaining what the higher price supports—local wages, environmental standards, food safety, community investment. Use specific examples rather than vague claims. If your product costs 10% more than an imported alternative, explain exactly where that extra money goes. The PwC report emphasises that brands need to communicate the value of local products in ways that resonate with both heart and wallet.
Adapt products and marketing to changing demographics
With younger consumers delaying or skipping traditional life milestones, review your product range. Are you offering single-serve or smaller-format options? Do your marketing images reflect diverse household types? The Retail Insider report points to rising spending on pets, subscriptions, and discretionary lifestyle purchases. If your brand is still centred on family-sized everything, you are likely missing a growing segment. Consider testing smaller pack sizes or subscription models for regular purchases.
Prepare for the future of consumer information
Consumers are increasingly using AI-powered platforms to search for products and information, moving away from traditional search engines. This changes how your brand gets discovered. Ensure your product data is structured for AI-friendly platforms—clear descriptions, accurate specifications, and transparent sourcing information. At the same time, the report warns of rising anti-AI sentiment, so maintain a human presence in customer service and marketing. An ExpressVPN subscription can help protect customer data privacy, which is becoming a trust factor in itself.
Stay ahead of regulatory and trade changes
The trade environment is shifting. The Bank of Canada survey shows that consumers expect their preference for Canadian goods to persist regardless of trade relationship changes. But tariffs, trade agreements, and labelling regulations can change quickly. Monitor updates from the Competition Bureau and Global Affairs Canada. If you import materials, have a contingency plan for tariff increases. If you export, understand how your products are labelled in other markets. For complex compliance questions, a business law service can provide guidance without the cost of a full legal retainer.
What does “Product of Canada” actually mean legally? ▾
How do I know if my customers actually care about local sourcing? ▾
Can I charge more for a locally sourced product? ▾
What if my business cannot source anything locally? ▾
How do I handle negative feedback about my sourcing? ▾
Will the preference for Canadian goods last? ▾
Why the local-first shift is a long-term structural change
The data from multiple sources points in the same direction: Canadian consumers are not just passing through a phase of patriotic shopping. The Bank of Canada survey explicitly states that the preference for Canadian goods is expected to persist regardless of how trade relationships evolve. That makes this a structural shift in consumer behaviour, not a temporary reaction to a specific news cycle. Brands that treat it as a short-term trend risk falling behind competitors who embed local sourcing and transparent communication into their core operations.
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 evolving standards reshape business strategies in Canada.
Sources and Further Reading
How exchange rate fluctuations impact Canadian businesses — Understand how currency movements affect sourcing costs and pricing strategies for imported and exported goods.
Canadian firms struggle with rising import tariff costs — A look at how tariff changes are affecting supply chain decisions and consumer pricing.
PwC Canada (2025). Price, patriotism and purchasing power: The dilemma facing Canadian consumers. 🔗
Bank of Canada (2026). Canadian Survey of Consumer Expectations—First Quarter of 2026. 🔗
Retail Insider (2026). Six Global Trends Reshaping Canadian Retail in 2026. 🔗
