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New poll results from Toronto insights management consultancy Leo & Dragon shed light on how U.S. tariffs threats are affecting individual retail categories and influencing brand-switching behaviours.
April’s survey of 732 Canadians aged 18 years or older suggests that dairy is far and away the most important “Buy Canadian” category with 80% of shoppers saying it is their top priority.
Fresh fruits and vegetables (69%), alcohol (50%) and frozen foods (40%) rounded out the top four.
Leo & Dragon CEO Joseph Chen says dairy, and especially yogurt, stand to gain the most from the patriotic-purchasing trend.
“This is a category Canadians care deeply about and want to support,” Chen tells strategy. “Many Canadian yogurt brands are not being perceived to be Canadian so there is future upside for those brands to activate their Canadian heritage.”
The categories that respondents said were least important with regards to “Buy Canadian” sentiment were savoury snacks (25%), sweet snacks (22%), personal care and soft drinks (20%) and beauty products (17%).
Chen says price and quality matter more than made-in-Canada when it comes to beauty products, a category in which consumers seek out items that deliver experiences and outcomes that are specific to their needs. “Consumers are also more emotionally engaged with the beauty brands,” he says.
The survey suggests that price plays a more prominent role in the sweets category than quality or Canadian-made status. Chen says there is likely some confusion in the category as to which confections are Canadian, American or European due to the dominance of multinational companies such as Mondelez.
Brand switching vs. premium spend
According to the poll, putting country first manifests itself in brand-switching decisions as well.
Fifty-seven per cent of poll respondents said they had made switches to Canadian brands while 49% reported they had reduced American-brand purchases.
Approximately three quarters of respondents said they have adjusted their shopping behaviour to seek out “Canadian” on labels, a shift in mindset that Leo & Dragon expects to endure.
When broken down, 73% of consumers said they search for “Canadian” on packaging labels, 54% on-shelf signage and 47% in their own research.
The numbers also suggest that 59% of Canadians are willing to pay a 7% premium for Canadian-made products.
“It used to be seen as expensive to shop local, but now Canadians are putting country over price tag, willing to pay more for Canadian-made products, particularly when it comes to food and beverages,” Chen says. “Gen Xers and boomers are leading the charge.”
Despite some reported instances of controversy over the country of origin of products, 70% of participants said they agreed that retailers are doing a good job making Canadian products identifiable in store
Although the poll suggests that ownership is the most import trait to convince consumers that a company is Canadian, it’s not a fixation. About six in 10 respondents said they would buy American brands that are manufactured or assembled in Canada or that support the Canadian economy.
