Buy Canadian sentiment may withstand holiday spending squeeze, survey finds

The cost of living is squeezing Canadians ahead of the holiday shopping season, but many say they’d be willing to spend more under one condition – if they’re buying Canadian.

The ‘Buy Canadian’ sentiment seems on track to withstand the holiday spending squeeze, a survey by PricewaterhouseCoopers found on Tuesday.

Nearly three out of four (72 per cent) say they are seeking alternatives to U.S.-made goods, with more than half (54 per cent) saying they will be willing to pay more for goods made in Canada, PwC’s 2026 Canadian holiday outlook said.

This is despite budget pressures, which have meant Canadians plan to spend 11 per cent less on holiday shopping overall, it added.

Canadians plan to spend an average of $1,487 this holiday season, the report said.

“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.

This year’s budget squeeze is coming primarily from older Canadians. Gen X Canadians are planning to spend 21 per cent less, while baby boomers are cutting back by 18 per cent.

In contrast, Gen Z Canadians are planning to spend eight per cent more this year than they did last year.

Households with children continue to be the main driver of holiday spending, with those households planning to spend twice as much over the holidays compared to child-free households.

Canadians are also changing where they look for deals, with more than a quarter (28 per cent) planning to use AI tools to shop for the holidays. This is up sharply from 17 per cent in 2025.

Shoppers are planning to use AI tools to research products, compare items, discover gift ideas and, in some cases, make purchases.

However, stores remain the top way to shop, with 40 per cent saying they plan to use both physical and online stores.