Cost savings still trump buying local, finds PwC report

Although Canadians express a willingness to buy locally produced food, most will still choose a lower-priced imported product, according to a recent PwC report. The consulting firm polled 1,000 Canadian consumers in its 2025 Voice of the Consumer report.

Although three-quarters (75%) of Canadians say they are willing to pay a premium for locally produced food, a majority (62%) would ultimately pick a lower-priced imported product over a more expensive domestic equivalent.

Canadian consumers have been squeezed by skyrocketing cost of living in the post-pandemic era, with rent, transportation, and food inflation far outstripping real wage increases.

Despite the “elbows-up” rhetoric of the US-Canada trade war, many Canadians are struggling to stay afloat, and a more expensive domestic product may simply be a virtue-signaling luxury for the less price-sensitive and wealthier segments of Canadian society.

“Canadians value local products and want to support homegrown businesses, but price remains a powerful influence, especially in today’s economic climate,” said Elisa Swern, national retail and consumer leader, PwC Canada.

The extreme cooling of trade and political ties with the United States has boosted Canadian consumers’ preference for local products, with 46% citing domestic sourcing as the top sustainability consideration in food purchases – above the global average of 40%. However, the perceived price premium of Canadian goods undermines these intentions, PwC says.

“While there's a clear desire to support the local economy, 'Made in Canada' labels alone aren't enough to sway Canadian consumers,” said Swern. “This creates an imperative for Canadian retailers and consumer packaged goods (CPG) companies to build more efficient food supply chains from farm to table.”

Canadian producers ultimately need to compete on price rather than nationalism, barring the expansion of cartel-based restrictions on all goods (as on certain dairy products).

PwC recommends prioritizing efficiency and automation efforts to manage rising input costs and maintain competitiveness.

In the area of healthy eating, Canadians are more restrained than the global average. Only 45% of Canadians plan to increase fresh produce consumption in the next six months compared to 56% globally.

A quarter of Canadians would switch brands for added health benefits and two thirds would pay more for additive-free or nutritionally enhanced foods.