A new survey by Interac Corp. reveals a significant shift in Canadian consumer behaviour, with nearly eight in 10 Canadians (79%) agreeing that supporting local businesses has become more important compared to last year. The survey highlights a growing commitment to community-driven spending, as more Canadians recognize the direct impact their purchasing decisions have on local economies.
According to the findings, over two-thirds of Canadians (68%) believe their spending choices directly affect their local communities. In a sign of their support, more than half (53%) of Canadians are willing to spend an extra $5 to purchase products locally, and a third (33%) are prepared to pay $10 more for the same reason.
“Amid the current climate of economic uncertainty and evolving tariff threats, Canadians are looking at their spending in a new light,” said Debbie Gamble, Group Head, Chief Strategy & Marketing Officer at Interac.
“Our survey results confirm that Canadians are very intentionally exercising their spending power – choosing to support local businesses even if they may need to spend more to do so. This trend has emerged despite longstanding cost-of-living pressures and demonstrates a powerful commitment to local communities.”
This shift is part of a broader “Buy Canadian” movement that has gained momentum in response to the economic climate. Nearly three in four Canadians (73%) now see more value in spending their dollars on local or Canadian-made products. The top reasons for this preference include a desire to support the local economy (79%), trust in Canadian quality standards (56%), and a sense of patriotism or Canadian pride (55%), according to the survey.
Despite this strong intent to support Canadian-made products, challenges remain in identifying these items. Although seven in 10 Canadians (71%) actively look for products that are clearly made in Canada, 40% struggle to verify the origin of products before purchasing. This highlights the need for clearer labeling and transparency at the point of sale, said the survey.
To help address this issue and promote local shopping, Interac has partnered with the Canadian Federation of Independent Business (CFIB) to increase the visibility of independent retailers and their locally sourced products. This initiative is aimed at providing small businesses with tools and resources to more effectively showcase Canadian-made goods, empowering consumers to make informed choices that benefit their communities.
Dan Kelly, President of CFIB, emphasized the critical role of consumer spending in supporting local businesses: “The ‘Buy Canadian’ energy and initiatives popping up across the country have been fantastic. The best way to support Canadian businesses is to support locally-owned small businesses in your community and looking for Canadian-made products wherever possible,” Kelly said. “Sixty-six cents of every dollar spent locally stays locally. It benefits the business, their employees and the whole community.”
Additional findings from the Interac survey include:
- Eight in 10 Canadians (80%) are likely to choose Canadian-made products over imported ones.
- A large majority of Canadians (82%) prioritize supporting micro and small businesses in their communities, compared to just under a quarter (24%) who support large international corporations.
- Three-quarters of Canadians (76%) believe local businesses are more important to their communities than online-only retailers.
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A better job needs to done to provide more exposure and visibility to Canadian micro businesses across Canada. More than ever , we want to support canadian, small and local entrepeneurs, however most people do not have the time to go on a wild goose chase searching. Perhaps one of the media channels could feature a Canadian business each day as a start. It should not take so much effort for customers to source. If someone could figure out a better way to put the spotlight on individual businesses, there would be huge benefits to both consumers, and the business owners.
I agree. We’re going to endeavour to profile smaller businesses. We’re a small team so it might not be every day, but we will definitely be interviewing a lot of great people, discussing their operations.