Inflation may be driving Canadians away from brands, according to the latest EY Future Consumer Index.

The firm’s new report, which highlights current Canadian consumer behaviours amid inflation and rising interest rates, is based on a survey of 21,000 respondents across Canada and 25 other countries. It found that 49% of Canadians say that brands are no longer important as 58% take action to reduce spending in many areas of their lives deemed non-essential.

What’s more, more than half of Canadians would consider private labels for clothing, shoes and accessories – an 8% increase since June 2022 – and 67% believe private label satisfies their needs just as well as brands.

The inflationary environment is having effects outside of brand choice: 73% of Canadians prefer to repair rather than replace their possessions, a 6% increase since October 2022. In addition, 43% of Canadians are planning on spending less for grocery delivery services, the second-most among surveyed markets.

“With today’s economic uncertainties, Canadians are focusing on short-term lifestyle changes and reprioritizing individual needs,” says Monica Chadha, EY Canada’s retail lead.

The EY Future Consumer Index also embedded a new tech segment, which highlights some stats around how Canadians are leveraging AI technology to improve their shopping experiences and day-to-day habits or tasks.

Among the findings: 43% of Canadians are now comfortable with the use of artificial intelligence if it means an improvement to their purchasing experiences. They say they will leverage AI or share data in exchange for customized online shopping experiences (51%), tailored ads (43%) or promotions (63%) and pre-populated shopping carts (41%).

The report also reveals a growing reliance on tech: 51% of Canadians socialized with friends and family over video platforms – a significant 10% rise since June 2022. And 56% now listen to audio streams, a 18% increase from June 2022.