Saturday, May 24, 2025

‘Buy Canadian’ Trend Reshapes Retail Landscape as Consumers Embrace Domestic Products

A significant shift toward Canadian-made products is transforming the nation’s retail sector, with new data revealing consumers are embracing domestic purchasing beyond immediate tariff concerns, according to research released Thursday by Lightspeed Commerce.

Dax Dasilva

A recent survey of 1,000 Canadian adults shows 91% are now prioritizing Canadian-made products, with nearly three-quarters committed to maintaining these shopping patterns even if trade tensions ease.

“91% is a galvanizing number, that shows Canadians are clearly prioritizing domestic products, but it requires an active awareness and participation in how they go about shopping,” Dax Dasilva, CEO of Lightspeed Commerce, told 6ixRetail in an interview. “The trend points to a larger behavioural shift — one where Canadians are choosing to invest in their economy, support Canadian businesses, and prioritize quality and authenticity.”

The data reveals consumers are taking concrete steps to support domestic products. Approximately 72% define “Buying Canadian” specifically as purchasing Canadian-made products from domestic retailers, while 65% now examine labels and tags to verify Canadian origin. Nearly half actively research trusted Canadian brands and retailers, and 73% are reconsidering shopping at major U.S. retail chains including Walmart, Amazon, and McDonald’s.

Global Cheese in Kensington Market (Image: 6ix Retail)

This behavioural shift extends beyond sentiment to financial commitment, with 71% of respondents expressing willingness to pay premium prices for domestic products. Most indicated they would accept a 5-10% price increase for Canadian-made goods.

Major retailers have begun adapting their merchandising and marketing strategies in response to this consumer shift. “You’re already seeing the impact play out in how brands are choosing to market themselves to Canadian consumers,” Dasilva noted. “Whether domestic or international goods, more products and packaging are featuring labelling that indicates their Canadian roots.”

He observed an increase in products displaying “Made in Canada,” “Canadian based,” and “Canada’s favourite” messaging, along with prominent use of the maple leaf on packaging.

Shop Canadian Signage at Nature’s Emporium (Image: 6ix Retail)

As Canada’s largest retail market, Toronto presents distinct opportunities and challenges within this national trend. “Toronto is one of Canada’s largest markets, and one that has a broad multi-cultural influence,” said Dasilva. “With such a large mix of cultures, Toronto is in a unique position to be able to offer globally influenced products at a local level.”

The city’s retailers must navigate a delicate balance between patriotic sentiment and international demand, according to market analysts. This may require more visible promotion of Canadian-made goods while maintaining globally connected product assortments.

“The future of retail in Toronto will be defined by those who successfully bridge these worlds—offering consumers the best of Canadian innovation while staying globally connected,” Dasilva explained.

The research indicates certain product categories are particularly well-positioned to benefit from this shift in consumer preferences. “We’ve seen in the past that consumers tend to prioritize local when it comes to products related to food and beverage, apparel and home goods,” said Dasilva. “With a spotlight on Canadian made products, there’s a strong opportunity for local businesses to amplify their ‘homegrown roots’ and tap into this consumer sentiment to drive increased demand.”

Despite strong support for Canadian products, the survey identified potential trust issues regarding product origins. Nearly one-third (29%) of consumers believe companies are mislabelling products as “Canadian,” while 49% suspect some deceptive practices exist but believe most companies are honest.

“Consumer trust is hard earned, and easy to lose,” cautioned Dasilva. “Consumers are currently providing companies with the benefit of the doubt as we get a better grasp on where products come from and how to re-define labelling, but this won’t always be the case.”

He warned that prolonged economic pressure could lead consumers to demand more rigorous labelling standards to verify authentic Canadian origins.

No Frills Bread Section (Image: 6ix Retail)

Market analysts suggest retailers across all segments must develop strategic responses to this shift. International retailers need authentic Canadian connections while maintaining brand integrity. Domestic retailers with established Canadian supply chains can leverage transparency as a competitive advantage. Pricing strategies must balance premium positioning against ongoing consumer price sensitivity.

“Canadian-based goods have an opportunity to jump on this movement to expand their marketshare, while international goods need to double down on their brand attachment to consumers, while maintaining a competitive price point,” Dasilva said.

The survey found 74% of Canadians are likely to continue buying Canadian products even if U.S. tariffs are removed, suggesting this shift represents a fundamental change in consumer priorities rather than a temporary reaction.

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