- 'Made in Canada' sentiment strengthens amid holiday cutbacks: 54% would pay more for a Canadian-made product and 72% are seeking alternatives to US-made goods, even as planned holiday spending falls 11%
- Older Canadians lead holiday cutbacks: planned spending falls 21% among Gen X and 18% among baby boomers, while Gen Z expects to spend 8% more.
- Canadians are spending less but prioritizing connection: 74% are favouring offline and in-person activities, while households with children are opting for screen-free activities and experiences.
TORONTO, Oct. 6, 2026 /CNW/ -- Canadians are entering the holiday season with smaller budgets but a growing willingness to support products made at home, according to PwC Canada's 2026 Canadian holiday outlook. As Canada-US trade tensions sharpen attention on where products come from, more Canadians than ever are prioritizing domestic goods, even as overall planned holiday spending falls 11%.
"Canadians are cutting back, but they're drawing a hard line on where their money goes," said Adam Boutros, Partner and National Consumer Markets Leader at PwC Canada. "More of them than ever want their money to stay in Canada--and older Canadians are making that choice especially clear: even as they plan some of the steepest spending cuts, two-thirds of baby boomers are still willing to pay more for Canadian-made products."
Canadians plan to spend an average of $1,487 this holiday season, down 11% from last year. Even so, support for Canadian-made products is growing; more than half (54%) would choose a more expensive Canadian-made product over a similar imported option, up from 49% last year. Consumers are also looking for value, with 69% planning to purchase less expensive alternatives, while 28% expect to use AI at some stage of their holiday shopping journey, up from 17% last year.
Trends that will shape the 2026 holiday season
Buy Canadian withstands the squeeze: Although consumers plan to spend less overall, buying Canadian has become more important. Baby boomers are leading this shift: two-thirds (66%) are willing to pay more for Canadian-made products despite planning to reduce their overall holiday spending. Canada-first sentiment is also evident in shopping plans: just 13% intend to cross-border shop this holiday season, compared with 20% in 2024, while 72% continue to actively look for alternatives to US-made products. The survey was conducted in July and early August, before the recent round of tariff escalations, so the findings may under-represent current Canadian sentiment. For retailers, clearly communicating products that have been made, assembled or designed in Canada--and offering them at accessible price points--is becoming increasingly important.
"Canadian consumers are making more deliberate purchasing decisions than they have in years, with more than half looking to support Canadian businesses and products--giving retailers an opportunity to respond to a renewed 'Canada strong' sentiment," added Anita McOuat, National Managing Partner, Clients & Industries at PwC Canada. "Retailers have an opportunity to leverage technology like AI and other digital tools to make Canadian-made products easier to discover, offer personalized recommendations, and clearly communicate value--turning this moment into lasting loyalty."
Budget pressure reshapes holiday priorities: Three quarters of Canadians are taking steps to stretch their holiday budgets, with 69% planning to choose less expensive alternatives. The pullback is not uniform: year-over-year planned spending falls 21% among Gen X and 18% among baby boomers, while Gen Z expects to spend 8% more. Households with children remain a key driver of holiday spending, planning to spend nearly twice as much as those without children. They are also more likely than households without children to give screen-free, hands-on activities and experiences to both children and adults.
AI gains ground but stores still lead: Planned AI use has risen to 28%, up from 17% last year. Consumers expect to use AI-powered tools to research products, compare items, discover gift ideas and, in some cases, make purchases. Physical stores, however, remain the top channel for purchasing across all generations, and 40% of consumers plan to use both online and in-store channels when purchasing. For retailers, AI is becoming another part of the shopping journey--not a replacement for the in-store experience.
Quebec holds steady as spending declines elsewhere: British Columbia anticipates the highest average spend at $1,639, followed by Ontario at $1,567 and Quebec at $1,497. Planned spending is $1,349 in Atlantic Canada and $1,261 across Alberta, Manitoba and Saskatchewan. Quebec is the only region where spending intentions show no notable year-over-year change.
To read the full 2026 PwC Canada Holiday outlook report, visit: https://www.pwc.com/ca/en/industries/consumer-markets/holiday-outlook-canadian-insights.html
Methodology
To better understand what matters most to shoppers, PwC Canada surveyed more than 1,000 Canadian consumers in July and early August 2026.
About PwC Canada
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SOURCE PwC Management Services LP
Media Contact: Anuja Kale-Agarwal, National Communications Director, PwC Canada, Email: [email protected]
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