Canadians Prioritize Domestic Goods Amid Trade Tensions and Holiday…

Event summary

Canadians plan to spend 11% less this holiday season, averaging $1,487, but 54% are willing to pay more for Canadian-made products, up from 49% last year.
72% of Canadians are actively seeking alternatives to US-made goods, and only 13% intend to cross-border shop, down from 20% in 2024.
Gen X and baby boomers are cutting holiday spending by 21% and 18% respectively, while Gen Z expects to spend 8% more.
AI use in holiday shopping is rising, with 28% of consumers planning to use AI-powered tools, up from 17% last year.
Quebec is the only region where holiday spending intentions show no notable year-over-year change.

The big picture

As Canada-US trade tensions escalate, Canadian consumers are increasingly prioritizing domestic goods, even as overall holiday spending declines. This shift presents an opportunity for retailers to leverage technology like AI to enhance the shopping experience and build lasting loyalty. The data suggests a significant generational divide in spending habits, with older Canadians leading the charge in supporting Canadian-made products despite cutting back on overall spending.

What we're watching

Domestic Preference: How retailers will adapt to the growing demand for Canadian-made products and clearly communicate their origin.
Generational Spending: Whether the spending patterns of different generations will continue to diverge, particularly as older Canadians cut back while Gen Z increases spending.
AI Adoption: The pace at which AI tools will be integrated into the holiday shopping experience and their impact on consumer behavior.