Canadian grocery shopping habits have shifted due to U.S. trade discussion: report

Ottawa – A new consumer research report suggests concerns about tariffs or trade restrictions between Canada and the U.S. has caused Canadians to significantly change their grocery shopping habits, including buying more Canadian produce, bakery and grains, canned goods, meat/poultry/seafood, and dairy products.

The report from Food Processing Skills Canada, entitled “Impact of US Tariffs on Canadian Food Consumer Behaviour,” is part of a series of consumer surveys gathering insights into Canadians’ grocery shopping habits, perceptions of available products,and response to increasing food prices and inflation. This final report in the series also assessed awareness and concern regarding U.S. tariffs and trade rhetoric.

Research indicates that the political environment has had a direct impact on Canadian consumer shopping habits. Ninety-eight per cent of survey respondents have heard about tariffs or trade restrictions between Canada and the U.S. and 85 per cent are concerned.

This concern has caused a significant shift in behaviour with nearly half of consumers making significant changes to their grocery shopping habits in the last two months. The primary motivation for these changes is a desire to buy Canadian products (81 per cent) and avoid U.S. products (76 per cent). The research suggests seniors prioritize buying Canadian, while immigrants and those under 35 place less emphasis on it. Buying products from one’s own province is more important to Quebecers (82 per cent) and less so to Albertans (48 per cent).

Sixty-seven per cent of consumers report buying more Canadian products in the past two months, including about a quarter who indicate buying “much more.” Consumers are most likely to report buying more Canadian produce, followed by bakery and grains, canned goods, meat/poultry/seafood, and dairy products. Alcoholic beverages are at the bottom of the list. Half of consumers report shopping at Canadian grocery retailers more often.

Consumers are most likely to report buying more Canadian produce, followed by bakery and grains, canned goods, meat/poultry/seafood, and dairy products.

The top motivations for buying more Canadian products are the belief that it’s good for the economy, “anger/frustration” with the U.S., a desire to help Canadian food and beverage processors and Canadian pride. Very few are motivated by a belief that Canadian products cost less. Half of consumers who increased their purchases of Canadian products report an increase in their grocery bills, but only five per cent consider the increase to be “much more expensive.”

Identifying Canadian products a challenge

However, identifying Canadian products remains a significant challenge. Only 40 per cent of consumers find it easy to determine how “Canadian” a product is. The most common method for identifying Canadian products is reading product labels, followed by looking for Canadian symbols (for example, the flag) on packaging. Just over 10 per cent use mobile apps or online tools and only about half of respondents correctly identified “Product of Canada” as the “most Canadian” product, highlighting a lack of understanding of labelling.

Seventy per cent of all consumers say they would buy a lot more Canadian products if it was easier to determine how Canadian it is.

“There is an opportunity here for Canadian food and beverage businesses to reach consumers looking for local and Canadian products and for policymakers to use the tools at their disposal to get more Canadian products in front of consumers,” said Jennefer Griffith, executive director, Food Processing Skills Canada.

The research suggests that nearly half of those who haven’t increased their purchases of Canadian products want to start doing so, but difficulty identifying Canadian products is a major barrier for this group. Seventy per cent of all consumers say they would buy a lot more Canadian products if it was easier to determine how Canadian it is.

A total of 1,500 adult residents from across Canada were surveyed online from March 17-20, FPSC An associated margin of error for a probability-based sample of this size would be ±3%, 19 times out of 20.

Download the full report here.

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