NielsenIQ, a leading consumer intelligence company, has released new insights into Canadian consumer sentiment and spending patterns heading into the holiday season.
Based on NIQ’s most recent inflation analysis, consumer surveys and Consumer Outlook: Guide to 2026 report, Canadians are demonstrating resilience to economic pressures and uncertainty by adapting how and where they spend, prioritizing savings, promotions, and practicality over patriotic purchasing alone.
“As the holidays approach, Canadians are redefining what celebration looks like, choosing smarter spending over splurging and supporting local brands when it aligns with value,” said Mike Ljubicic, Managing Director, Canada, NielsenIQ.
“Retailer success will come from making products easy to find, affordable, and meaningful to consumers’ everyday lives.”
The survey found that Canadians are feeling financial strain but showing resilience with smarter spending and greater focus on relevance, not excess:
- Fast-moving consumer goods (FMCG) inflation shifted between 2.1% – 3.1% from December 2024 to August 2025;
- Smaller brands drive 38% of absolute dollar growth in FMCG;
- Consumer confidence rose to 60.3 points in September, yet 36% feel financially worse off. Rather than halting spending, shoppers are cautiously spending;
- 49% will stock up on sale items, while 42% report only having money for essentials.
Canadian shoppers are still loyal to homegrown products but are more open to global alternatives that deliver affordability, added the report:
- “Canadian Loyalists” dropped to 14% (–3 points from early 2025);
- Avoidance of U.S. brands fell 7 points, now at 30%;
- “Made in Canada” goods still outperform U.S. products (+5.3% vs. –7.9% respectively year to date, Sept 2025), but the gap is narrowing;
- Retailers are balancing national origin with affordability, expanding private labels and discount options.
NIQ said Canadian retailers are rethinking their playbooks to meet consumers where they are, prioritizing value, convenience, and relevance over tradition.
- More than 100 new discount stores have opened in the past two years, appealing to consumers’ need for value.
- Smaller, agile brands drive 38% of FMCG dollar growth.
- Consumers increasingly reward brands that deliver niche appeal and sustainability without sacrificing price.
- Online FMCG sales exceed 10%, up 5 points in two years, as retailers invest in digital tools that simplify the path to purchase and save time.
NIQ’s Made in Canada report series and related insights can be accessed here and here.
More from Retail Insider:
