Toronto consumers are driving a significant shift toward Canadian-made products, with 84% currently purchasing or planning to buy domestic goods over American alternatives, according to new survey data from Lightspeed. The trend represents a substantial market opportunity for Canadian retailers while posing challenges for U.S. brands operating in the Greater Toronto Area.
The consumer preference extends beyond simple purchasing decisions. Nearly four in five Toronto residents (79%) believe Canadian retailers should remove U.S. goods from their shelves entirely, while 53% are willing to pay premium prices for Canadian-made products. Among those prepared to pay more, 83% limit their premium tolerance to 10% extra, with the average Toronto consumer willing to pay approximately 8% more for domestic goods.
What distinguishes this trend from typical market fluctuations is its staying power. An overwhelming 86% of Toronto consumers indicate they would continue buying Canadian products even if all tariffs disappeared, suggesting the shift represents a fundamental change in consumer values rather than a temporary response to trade tensions. Lightspeed’s data, collected both when tariffs were initially announced and again three months later, shows the sentiment has maintained consistency over time, indicating this is a lasting shift rather than a knee-jerk reaction.
The movement is driven by strong emotional connections to Canadian identity. Survey respondents report feeling “proud” (68%) and “patriotic” (38%) about their Canadian purchasing decisions, with 38% saying the behaviour makes them feel “empowered.” These emotional drivers are translating into concrete shopping behaviours that retailers must understand.
Nearly two-thirds of Toronto shoppers (64%) now actively read labels and tags to confirm Canadian origin, while 38% research Canadian brands or stores before making purchases. The trend extends beyond retail goods, with 62% of Toronto residents planning domestic travel this summer specifically to support the local economy.
However, the movement includes built-in consumer scepticism that brands must navigate carefully. More than half of consumers (54%) believe most firms are mostly honest but some mislead, while 29% suspect Canadian-washing – companies falsely marketing products as Canadian-made. This indicates that authenticity and transparency will be crucial for retailers seeking to capitalize on the trend.
Despite the strong consumer sentiment, 66% of Toronto shoppers report having difficulty finding Canadian alternatives when they focus on buying domestic products. Nearly a quarter (24%) say they’re struggling to find many Canadian products, while 41% report issues with a few products overall. Only 31% say they can always find Canadian alternatives, highlighting significant supply gaps in the market.
For Toronto’s retail landscape, the implications span multiple sectors, though opportunities vary significantly by category. Food and groceries lead as the easiest Canadian products to find, with 72% of consumers identifying this category. Services such as insurance and financial services follow at 34%, while household items rank third at 29%. Health and wellness products (25%) and clothing and apparel (21%) present moderate opportunities, while electronics lag significantly at just 13% – highlighting a major gap for technology retailers.
The data reveals clear winners and losers in the Canadian retail ecosystem. Canadian brands may discover expanded market opportunities, while U.S. retailers might need to adapt their messaging and sourcing strategies or risk losing market share. Electronics retailers face particular challenges, given the low availability of Canadian alternatives, while food and service providers appear best positioned to capitalize on the trend.
The survey findings mirror broader Ontario trends, where 78% support removing U.S. goods from Canadian retailers. Across the province, 87% would continue choosing Canadian products even without tariffs, while 86% are currently buying or planning to purchase Canadian goods. The provincial data shows 49% are willing to pay more for Canadian-made products, with 81% of those consumers capping their premium at 10% extra. Ontario consumers on average are willing to pay 8% more for Canadian goods, matching Toronto’s price tolerance.
Retailers who can authentically demonstrate Canadian credentials while maintaining competitive pricing within the 8-10% premium range may find themselves well-positioned to capture growing market share. Those who fail to adapt to this values-driven shopping behaviour risk being left behind as Toronto consumers increasingly support homegrown alternatives.
The challenge for the retail sector will be meeting this demand while avoiding the “Canadian-washing” concerns that nearly one in three consumers are monitoring. Success will depend on genuine commitment to Canadian sourcing and transparent communication about product origins – qualities that Toronto’s increasingly discerning shoppers are prepared to reward.
Dustin Fuhs is the founder and Editor-in-Chief of 6ix Retail, Toronto’s premier source for retail and hospitality industry news. As the former Editor-in-Chief of Retail Insider, Canada’s most-read retail trade publication, Dustin brings over two decades of expertise spanning retail, marketing, entertainment and hospitality sectors. His experience includes leadership roles with industry giants such as The Walt Disney Company, The Hockey Hall of Fame, Starbucks and Blockbuster.
Recognized as a RETHINK Retail Top Retail Expert in 2024 and 2025, Dustin delivers insider perspectives on Toronto’s evolving retail landscape, from emerging brands to established players reshaping the city’s commercial districts.