New findings from PwC Canada’s 2025 Voice of the Consumer report reveal a widening gap between Canadians’ aspirations and actions when it comes to buying food. While most consumers express strong support for locally sourced products, affordability remains the deciding factor at checkout. This growing tension underscores the challenges retailers and brands face in aligning economic realities with consumer values.
According to the report, 76% of Canadians are concerned about food costs, well above the global average of 59%. At the same time, 75% say they’re willing to pay a premium for local food, driven by a desire to support the economy and access higher-quality products. Yet, when push comes to shove, 62% still choose lower-priced imported products over Canadian alternatives.
“This disconnect reflects the tension between Canadians’ desire to shop local and the reality of their purchasing decisions at checkout,” said Elisa Swern, National Retail and Consumer Leader at PwC Canada. “Canadians value local products and want to support homegrown businesses, but price remains a powerful influence, especially in today’s economic climate.”
Swern said the issue is not necessarily that local products are more expensive—it’s that consumers perceive them as being more costly, which drives them toward lower-priced options even when they would prefer to buy local.
Value Beyond Price: A Story Yet to Be Told
Swern emphasized that brands must do more to communicate the total value of local products, not just in terms of price but also in terms of provenance, sustainability, and community impact.
“Value perception is something that needs to be worked on,” she explained. “Even if there’s a small price differential, if consumers understand that something was grown in their backyard or that it supports a local family business, it can touch them more deeply from a value perspective.”
She added that manufacturers and retailers need to collaborate to tell that story in-store and online, helping consumers understand where their food comes from and why it matters.
Domestic Sourcing Ranks High in Sustainability Priorities
Another major insight from the PwC report is that 46% of Canadian consumers now cite domestic sourcing as their top sustainability consideration, above the global average of 40%. That reflects a shift in how consumers define “sustainable”—focusing more on economic resilience and local ecosystems than just carbon emissions or packaging.
Yet this support is often undercut by perceived price premiums, even when those premiums don’t actually exist. Swern said this creates a critical opportunity for education.
“‘Made in Canada’ labels alone aren’t enough to sway Canadian consumers,” she noted. “Retailers and food manufacturers need to look at new ways of partnering—technologically, operationally, even with government—to bring sustainable products to market without passing heavy price increases on to the consumer.”
Collaboration and Efficiency: Keys to the Future
The path forward, according to the report, lies in creating more efficient and interconnected supply chains. Swern believes that if producers, retailers, and technology companies work more closely, they can reduce food waste, streamline logistics, and manage input costs—all of which help lower prices without compromising quality.
“Some companies are already experimenting with vertical growing in stores, QR code storytelling, and smarter packaging,” Swern said. “There’s huge opportunity to scale these innovations.”
She cited international examples, such as a Middle Eastern grocer working directly with farmers not only to improve wages and reduce food waste, but to also bring them into the supply chain as strategic partners rather than just suppliers.
“We need more of that kind of thinking in Canada,” she said. “Retailers should be asking: how do we give smaller producers a chance to compete, even if they can’t afford premium shelf space? What kind of story can we tell that connects consumers emotionally to these products?”
Healthier Eating: A Generational Shift
The PwC report also tracked emerging health-conscious trends, particularly among younger consumers. While only 45% of Canadians plan to increase their fresh produce intake in the next six months (compared to 56% globally), Gen Z consumers are much more likely to push for healthier food choices and expect companies to lead the charge.
“They’re more attuned to what’s in their food and where it comes from,” Swern explained. “They’re also more vocal about wanting clean, recognizable ingredients.”
Swern said food companies must adapt, not just by adjusting formulations but by clearly communicating what goes into their products.
“This is where technology can help,” she noted. “New 2D barcodes can offer more information than traditional labels, linking to a brand’s website or farm origin stories. Consumers want to know their peaches came from John Smith’s orchard in Ontario—that kind of storytelling builds trust.”
Making Healthier Options Affordable
While the desire for healthier food is rising, affordability is again the barrier. The report found that nearly two-thirds of Canadians would pay more for additive-free or nutritionally enhanced foods, but many still can’t justify the higher price.
Swern said that to bridge this gap, operational efficiency must be part of the solution.
“Retailers are starting to look at how to eliminate waste throughout a product’s life cycle—from farm to shelf,” she said. “Take potatoes, for instance. How do we use the entire crop, reduce spoilage, and make the most out of every unit produced? If you reduce waste, you reduce costs.”
She also sees promise in technology-driven solutions like dynamic pricing, spoilage sensors, and smarter demand forecasting.
“Imagine if a grocer knows it’ll sell 2,300 cases of strawberries in week 23. That kind of precision, combined with dynamic pricing as a product nears end of life, could cut waste and deliver fresher food at better prices.”
Strategic Partnerships Will Shape What’s Next
Swern believes that the future of Canadian food retail depends on deeper collaboration—not only across the supply chain, but also with external partners in technology, agriculture, and government.
“There’s a lot of talk about retail media, about tech solutions, but at the end of the day it’s about partnerships,” she said. “The future belongs to companies that can align with producers, deliver on transparency, and speak to the consumer in a way that’s both emotionally compelling and economically viable.”
Even seemingly small gestures—like making QR codes easier to scan or helping smaller brands tell their stories—can build consumer loyalty.
“It’s about building trust,” Swern concluded. “Canadians want to support local. They want to eat well. It’s up to the industry to make those choices easier, more accessible, and more affordable.”
For more findings from PwC Canada’s Voice of the Consumer 2025 report, including insights on brand loyalty, health trends, and the evolving role of sustainability in food retail, visit pwc.com/ca/voice-of-the-consumer.
