What to know
- Canadians plan to spend an average of $1,487 this holiday season, an 11 per cent decrease from last year, according to a PwC Canada survey of 1,000 consumers.
- More than half of respondents (54 per cent) said they would pay more for Canadian-made products, up from 49 per cent last year, as shoppers look to support local businesses amid economic uncertainty and rising living costs.
- Plans to shop across the U.S. border have dropped to just over one in 10 consumers, down from 20 per cent in 2024, amid ongoing tariff tensions between Canada and the U.S.
- Toronto residents told Now Toronto that shopping locally helps keep money in communities, although some said finding Canadian-made products can be challenging. Residents recommended exploring neighbourhood shops along Queen Street and King Street and visiting farmers’ markets to discover local businesses.
Canadian consumers reported they plan to spend less this holiday season, but many are willing to pay more for local products to support home businesses, according to a recent study.
According to a survey by PwC Canada, more than half of the 1,000 polled said they would pay more for a Canadian-made product, with 54 per cent turning to local products, an increase from 49 per cent last year.
This is despite shoppers planning to spend less this year, with respondents reporting they plan to spend an average of $1,487 this holiday season. PwC confirmed this was an 11 per cent decrease from last year.
Due to a higher cost of living and economic uncertainty, holiday budgets are shrinking, but it seems supporting Canadian businesses remains at the top of the list for many shoppers.
More shoppers willing to pay for Canadian-made goods
For shoppers hoping to support local businesses this holiday season, choosing Canadian-made gifts and shopping at independent retailers can be a way to keep more spending within their communities.
Plans to shop across the border are around half compared to past years, according to the survey.
Only around one out of 10 Canadian consumers polled stated they would plan to shop over the border for the holidays – a number that’s down from 20 per cent in 2024.
The hesitancy to make the trip comes during an ongoing tariff war with the U.S.
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‘It makes such a difference’: Torontonians share why shopping local matters to them
When asked, Toronto residents in the Liberty Village area leaned positively about shopping locally for the holidays, with many telling Now Toronto they planned to shop for products made at home.
“I think it’s very important to support our local industries and entrepreneurs, and I will definitely be investing more in our local industries and our local products as well,” Toronto resident Kathy said.
Kathy added that her willingness to shop local wasn’t always top-of-mind, with current political tensions influencing her choice this year, as opposed to last.
“This is not something I would have thought about a year ago, but [with] the significant changes in the world and with our political systems, I think that it’s important to show support for locals,” she shared.
Another Toronto local, Connor, agreed with Kathy: “100 per cent.”
“More recently I have been wanting to shop more local, and I’ve been doing that, especially for like coffee,” she explained. “[I] love Tim [Horton’s], but you’ve got so many local options that are so much better.”
Connor added that despite the possibility of a higher cost, it’s ultimately worth it if you can afford it.
“You might be paying a little bit more, but knowing that it’s going back into your community is just such a good feeling,” she said.
Giving back to the community is something Liberty Village BIA director Chris Fraser believes in.
“We’re in the big gift-giving season, so there are some great options here in Liberty,” he said.
Some may be worried about finding a gift that’s both local and appropriate for their loved one
One Toronto resident, Ed, noted how it could be difficult.
“I feel like our options are limited, or we just don’t know much,” he explained. “…We’re just not aware of what’s even made locally, so I think that’s what makes it a little bit tough to shop locally.”
Although, some residents said shopping locally can be easier than you might think.
“If you honestly just go for a walk, even on Queen Street, even King Street, there are so many local shops you can even just pop into. I feel people think, ‘oh, malls – they’re so convenient, they’re so big,’ but just get outside for five minutes in your neighbourhood. It makes such a difference.”
Fraser also gave the Queen Street approach near Liberty Village, noting that local shop owners have to drive business through promotion.
Ed said a farmer’s market is also a great way to find local vendors.
“I live in Etobicoke, and every Saturday there’s a farmers market. So, just in terms of produce, trying to support locally in that way,” he said.
All in all, all residents who spoke with Now Toronto agreed on the importance of keeping it local.
“Supporting the people, the next door neighbour, just investing in them instead of always going to these big box companies that don’t put that much into communities,” Ed explained.
“Supporting locally usually keeps the money within the communities.”
