Canadian consumers are approaching the 2025 holiday season with a cautious mindset, planning to cut back on spending and prioritize value, according to a new survey from PwC Canada.
The annual PwC Canadian holiday outlook highlights a shift in consumer behaviour driven by economic uncertainty, rising costs and a desire to make the most of both time and money during the holidays.
“This holiday season, Canadians are not just shopping; they’re strategizing,” said Elisa Swern, National Retail and Consumer Leader at PwC Canada. “Faced with persistent economic pressures, consumers are making tough choices, prioritizing family spending, while tightening belts elsewhere. This isn’t just about spending less; it’s about a fundamental shift towards conscious consumption, where every dollar must deliver tangible value and purpose.”
On average, Canadians plan to spend $1,675 on gifts, travel and entertainment this holiday season. That marks a 10 per cent decrease from last year, but a slight increase of two per cent over 2023 spending intentions.
The survey found that 81 per cent of respondents are considering cutbacks in the next six months, with reductions expected in spending on gifts for friends, pets and even themselves. However, spending on family remains a priority. Consumers are also showing a preference for debit cards over credit, suggesting an effort to manage spending more tightly.
“For retailers, this isn’t a time for business as usual,” said Sébastien Doyon, Partner, Consulting and Consumer Markets at PwC Canada. “The data clearly shows consumers craving authenticity – from Canadian-made products to genuine human interaction. Retailers who lean into these trends, offering transparent value, personalized experiences, and a clear brand story, will not only capture sales but have an opportunity to build lasting loyalty in a challenging market.”
Younger Canadians are expected to reduce their spending the most. Gen Z respondents anticipate cutting their holiday spending by 35 per cent, while millennials expect to spend 11 per cent less. These changes reflect the financial pressures on younger demographics, including early career instability and home ownership costs.
Regional differences also emerged. British Columbia consumers plan to spend the most at $1,821, followed by Ontario at $1,788. Quebec and Alberta consumers reported the lowest expected spending, both at $1,532.
The survey also identified several key trends for retailers. Nearly half (49 per cent) of Canadians said they would prefer to buy a Canadian-made product over an imported one of similar quality, even at a higher price. This sentiment was strongest among Baby Boomers, at 64 per cent. Meanwhile, cross-border shopping is down, with only 12 per cent planning in-person trips, compared to 20 per cent previously.
Despite the growth in online shopping, 56 per cent of Canadians say the ability to see and touch products remains important, and 64 per cent plan to shop in stores this holiday season. Gen Z and millennials are leading adoption of mobile payment and self-checkout options, with 44 per cent of Gen Z planning to use self-checkout, compared to 31 per cent overall.
When it comes to customer service, 73 per cent of respondents said they prefer speaking to a human agent. Only nine per cent ranked AI assistants or chatbots among their top three preferences.
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