Holiday shoppers across Canada are showing a distinct preference for locally-made products this season, even as inflation and cross-border tariff concerns continue to put pressure on wallets. This shift toward domestic goods represents both a practical response to economic conditions and a deeper change in consumer values.
“We’re seeing a 22% increase in customers specifically requesting Canadian-made items compared to last year,” explains Marianne Chen, owner of Handcrafted Toronto, a boutique specializing in artisanal goods. “People aren’t just buying local to save on shipping or avoid tariff complications—they’re actively seeking out the stories behind products.”
This trend comes amid complicated economic conditions. Statistics Canada reported last month that inflation has moderated to 3.1%, but everyday essentials like food and housing costs continue to outpace wage growth for many households. Meanwhile, uncertainties around cross-border commerce loom large as President-elect Trump’s promised tariff increases have already begun affecting import planning for Canadian retailers.
For consumers like Sarah McKenzie, a 34-year-old architect from Vancouver, the decision to buy local this holiday season blends practical and emotional considerations. “I started paying attention to where things were made during the pandemic supply chain issues,” she says. “Now I’m willing to spend 15-20% more for something made locally because I’ve seen how it supports my community.”
The Royal Bank of Canada’s latest consumer spending tracker shows holiday budgets are actually up 4.2% over last year, despite economic headwinds. However, shoppers are being more selective with those dollars, purchasing fewer items but investing in pieces they perceive as having greater meaning or durability.
“What we’re witnessing is a recalibration of value,” notes Dr. Marcus Tran, consumer behavior researcher at the University of British Columbia. “Canadians are asking different questions about their purchases—not just ‘how much does this cost?’ but ‘who benefits when I buy this?'”
For retailers, this represents both challenge and opportunity. Large chains like Canadian Tire and Hudson’s Bay have responded by prominently featuring “Made in Canada” sections and expanding their domestic supplier relationships. Meanwhile, online marketplace Etsy Canada reports a 31% year-over-year increase in searches including terms like “Canadian maker” or “local craft.”
The economic impact extends beyond retail. Supply chains are gradually reconfiguring as manufacturers respond to this demand shift. Quantum Textiles in Montreal, which produces fabrics for clothing and home goods, has invested $3.5 million in new equipment over the past year to meet increased orders from domestic brands.
“Five years ago, we couldn’t compete with overseas production on price alone,” admits Quantum’s operations director Jean Lessard. “But now retailers are willing to accept slightly higher wholesale costs because their customers understand the value proposition of Canadian-made.”
This evolution also intersects with growing environmental awareness. Transport Canada estimates that domestically produced goods typically generate 40-60% less transportation-related carbon emissions compared to imported alternatives. For climate-conscious consumers, this becomes another factor tipping the scales toward local purchases.
The trend isn’t limited to physical goods. Service-based gifts like experience packages, local event tickets, and restaurant vouchers are seeing substantial growth, up nearly 28% according to Moneris payment processing data.
However, challenges remain. Canada’s relatively small manufacturing base means certain product categories still rely heavily on imports. Additionally, domestic production capacity hasn’t fully caught up to the sudden surge in demand, creating fulfillment challenges during the compressed holiday shopping season.
“We’ve had to stop taking custom orders for the holidays because we simply can’t produce enough in time,” notes woodworker James Hoffman, whose Toronto-based studio creates handcrafted home accessories. “It’s a good problem to have, but we’re definitely leaving money on the table.”
Economist Patricia Ramirez from TD Bank cautions that this shift may face pressure as economic conditions evolve. “The question is whether this preference for Canadian-made products will persist if inflation continues to strain household budgets,” she says. “The premium consumers are currently willing to pay could become harder to justify if economic conditions worsen.”
Nevertheless, for now, the numbers suggest Canadian consumers are voting with their wallets for local goods. Industry Canada reports that domestic manufacturers in consumer goods categories have seen average revenue increases of 8.7% year-over-year, substantially outpacing GDP growth.
As the holiday shopping season reaches its peak, it seems many Canadians are finding that the best gifts come with a story about who made them and where—preferably one that begins right here at home.
