MONTREAL — In an era of economic caution, a new study reveals that a majority of Canadians remain committed to supporting homegrown products, even if it means digging deeper into their wallets. According to research from the Business Development Bank of Canada (BDC), nearly six in 10 consumers are willing to pay a premium for items made locally, provincially, or nationally, presenting a potential edge for businesses navigating tight budgets and rising costs.
The findings, released on April 14, 2026, come from BDC's Consumer Compass Program, a national survey conducted in December 2025 that polled 1,499 Canadian consumers. The survey, carried out by BDC's Research and Market Intelligence team, carries a maximum margin of error of ±2.5 percentage points, 19 times out of 20, though it is based on a non-probabilistic sample. This data underscores a persistent patriotism in purchasing habits amid broader economic pressures, such as inflation and supply chain disruptions that have lingered since the pandemic.
"Canadians want to support Canadian businesses, but they need clear signals to do so," said Pierre Cléroux, Chief Economist at BDC. "For entrepreneurs, competing on price alone is rarely enough. Communicating value—whether through quality, durability, service, or Canadian origin—could make a meaningful difference." Cléroux's comments highlight how origin can serve as a differentiator in a market where cost remains king for many shoppers.
Indeed, price continues to be the primary driver for most purchases. The study found that two-thirds of Canadians say cost influences the majority of their buying decisions, and nearly all consumers report comparing prices at least occasionally. This aligns with recent economic reports from Statistics Canada, which noted household spending contractions in late 2025 due to elevated interest rates and stagnant wage growth in several provinces.
Yet, the willingness to pay more persists. More than half of respondents indicated they are likely to opt for pricier Canadian-made alternatives, with those open to premiums averaging a 23 percent markup over cheaper imports or non-local options. This sentiment is particularly strong in categories like food, apparel, and household goods, where consumers often weigh ethical and environmental factors alongside economics.
Despite this enthusiasm, a significant hurdle blocks widespread adoption: visibility. Only about four in 10 Canadians find it easy to spot Canadian-made products on shelves or online, while more than a third describe the process as difficult. Unclear labeling and ambiguity around what constitutes "Canadian-made"—such as rules requiring substantial domestic content—create confusion, according to the BDC report.
Experts point to regulatory gaps as a contributing factor. The Canadian Food Inspection Agency and Competition Bureau oversee labeling standards, but enforcement varies, leading to inconsistencies. For instance, a product assembled in Canada with imported components might bear a "Made in Canada" tag, yet consumers often seek fully domestic origins. This issue has been debated in parliamentary committees, with calls for standardized symbols to simplify identification.
Beyond origin, other attributes matter greatly. Nearly two-thirds of survey participants ranked quality and durability as top priorities when making purchases, followed by discounts, customer reviews, and brand reputation. These elements suggest that entrepreneurs who emphasize storytelling—detailing sourcing, manufacturing processes, and community impact—could sway undecided buyers.
The study's implications extend to small and medium-sized enterprises, which form the backbone of Canada's economy. BDC, as the country's development bank, focuses on financing, investing in, and advising such businesses, particularly those in underserved markets. With over 1.2 million SMEs employing nearly 70 percent of the private sector workforce, clearer pathways to highlight Canadian credentials could boost local sales and job retention.
For consumers, the findings resonate with a growing "buy local" movement that gained traction during the COVID-19 crisis. Initiatives like Ontario's Buy Canadian campaign and British Columbia's support for provincial producers have seen mixed success, but the BDC data indicates untapped potential. In urban centers like Toronto and Vancouver, where import-heavy retail dominates, shoppers expressed frustration over hidden fees and unclear provenance in focus groups tied to the survey.
Rural areas show even stronger preferences, with respondents from Atlantic provinces and the Prairies reporting higher premiums—up to 28 percent in some cases—for regional goods. This regional variation reflects diverse economic realities: while Alberta's energy sector weathers volatility, manufacturing hubs in Quebec and Ontario grapple with global competition from Asia and the U.S.
To capitalize on this trend, the BDC recommends practical steps for businesses. Clearer, consistent labeling, such as a standardized "Product of Canada" emblem, could enhance visibility. Additionally, bolstering in-store displays, online tags, and marketing that ties products to national values might encourage more frequent choices. Competitive pricing remains essential, but bundling origin with superior service could tip the scales.
The report also touches on broader market dynamics. With trade tensions simmering— including U.S. tariffs on Canadian steel and aluminum lingering from previous administrations—domestic preferences could shield against external shocks. Economists like those at the Bank of Canada have noted that consumer sentiment toward local goods correlates with GDP contributions from manufacturing, which dipped to 10 percent of output in 2025.
Looking ahead, BDC's Consumer Compass Program plans quarterly updates to track evolving behaviors. As economic forecasts predict modest growth in 2026, with inflation cooling to around 2 percent, entrepreneurs are urged to adapt. "This is a clear opportunity to turn 'Canadian-made' into a competitive advantage," the report concludes, echoing Cléroux's emphasis on strategic communication.
For now, the study paints an optimistic picture for Canadian innovation amid fiscal restraint. As households balance budgets, the pull of national pride offers a lifeline for businesses willing to make their stories heard. BDC, reachable at mediainfo@bdc.ca or 1-844-625-8321, continues to support this ecosystem as Canada's Top 100 Employer and a B Corp-certified entity dedicated to resilient growth.