Canadian consumers are approaching the 2025 holiday season with an abundance of caution, and an eye for value.

According to a PwC holiday survey of 1,020 Canadians, rising costs and declining confidence are driving shoppers to cut back on spending and focus more on value.

Similarly, 81% of respondents said they are also considering cutting back to save money over the next six months, scrimping on gifts for friends, pets and themselves, though not for family.

It’s what PwC calls a fundamental shift toward more conscious consumption amid tough monetary choices, with spending intentions for Gen Z down considerably across multiple categories (see, below) and millennials cutting back their total spend by 11%.

Canadian consumers said they plan to spend an average of $1,853 on gifts, travel and entertainment this holiday season, according to the survey. The average represents a 10% decrease from last year’s spending intentions and a 2% increase on 2023.

While spending is down across the country, consumers in British Columbia and Ontario are reportedly spending the most, according to the survey, with Quebec and Alberta ranking the lowest in spending.

This financial prudence across the board is also reflected in a decreased preference for credit-card use and as consumers turn more toward using their debit cards.

Buy Canadian

PwC numbers also reveal that 78% of respondents are seeking out alternatives to U.S.-made products (see, below), with 49% of Canadians saying they would choose a more expensive Canadian-made product over an imported one of a similar quality, what Sébastien Doyon, partner, consulting and consumer markets at PwC Canada, considers a strong “Canada first” mindset.

Cross-border shopping is also down significantly, with only 12% (down from 20%) planning physical visits.

However, Doyon tells strategy that separate research points to a disconnect between consumer intent and actual purchasing behaviour and that while many Canadians express a desire to “Buy Canadian,” practical considerations like price, value and convenience often take precedence.

For retailers, this is an opportunity to bridge the gap by telling a story that resonates with consumers’ desire to support the local economy, in addition to offering transparent value, and personalized experiences.

In-store shopping

According to PwC research, despite the rise of digital shopping, in-store shopping will be an integral part of the holiday experience this year.

“Despite the rise of e-commerce, the physical store is more relevant than ever for holiday shopping,” Doyon says. “The tactile experience of being able to see and touch products is still a critical factor for 56% of Canadian consumers.” In fact, 64% of respondents plan to make in-person store visits specifically for purchasing.

While younger generations like gen Z and millennials are more digitally inclined to use options like mobile payments and self-checkout, they still participate in the in-store experience.

Finally, consumers are being savvy about when they’re going to do most of their holiday shopping. Consistent with last year, 32% said they intend to do most of their shopping across the Black Friday weekend (including Cyber Monday). However, there’s a 9% drop among those planning to shop between Thanksgiving and Black Friday compared with 2024.