Key Takeaways
- The "buy Canadian" movement, which encouraged shoppers to prioritize Canadian products, has waned in recent months
- Experts predict that the movement may return as the Canada-United States-Mexico free trade agreement is up for review and U.S. President Donald Trump continues to make protectionist statements
- Shoppers are prioritizing affordability over Canadian origin, but may be willing to pay more for local products if the price is reasonable
- Grocers are better positioned to respond to demand for Canadian products due to changes made during the initial "buy Canadian" wave
- The movement has shifted from "buy Canadian" to "buy anything-other-than-American" as long as it’s affordable
Introduction to the Buy Canadian Movement
The "buy Canadian" movement, which swept the country last year, has lost momentum in recent months. Many shoppers have returned to buying the cheapest option available, regardless of its origin. However, with the Canada-United States-Mexico free trade agreement up for review this year, experts predict that the movement may experience a resurgence. The review of the trade agreement is expected to lead to intensified rhetoric from U.S. President Donald Trump on tariffs and threats of annexing Canada, which could encourage Canadians to prioritize local products.
The Initial Wave of Patriotism
The "buy Canadian" movement first gained momentum last year as Trump’s attacks on trade with Canada and the world led to economic uncertainty, tariffs, and other threats. In response, Canada imposed its own counter levies, including on symbolic food items such as Florida orange juice. Grocery stores responded to shoppers’ demand for local goods by shoring up their domestic and international supply chains. They added maple leaf signs to their shelves to indicate which products had Canadian ties, and Loblaw Cos. Ltd. marked items that saw price increases due to tariffs with a "T" symbol. Manufacturers also revamped their packaging to indicate any domestic ties.
The Fading of the Movement
As shoppers grew fatigued by trade rhetoric, many tariffs, including some of Canada’s countertariffs, were removed, and food inflation began to take a toll on household budgets. The "buy Canadian" wave began to fade, and many shoppers returned to buying the cheapest option available. According to Statistics Canada, food price growth was five per cent year-over-year in December, continuing to outpace headline inflation. The movement has shifted from "buy Canadian" to "buy anything-other-than-American" as long as it’s affordable. Consumers are prioritizing Canadian items if the price makes sense, but are not willing to pay a high premium for local products.
Expert Predictions
Experts predict that the "buy Canadian" movement may experience a resurgence as the trade deal review nears in July. Amar Singh, senior director and head of Canadian retail insights at Kantar, believes that the direction of the trade talks will determine the fervor of the movement. Peter Chapman, founder of consulting firm SKUFood, notes that Trump’s pursuit to acquire Greenland could make Canadians feel more inclined to avoid American products and favor local vendors instead. Chapman believes that Canadians can sympathize with the feelings of other countries being targeted by Trump’s protectionist policies.
Grocers’ Response
Grocers are better positioned to respond to demand for Canadian products due to changes made during the initial "buy Canadian" wave. They have done a lot of the heavy lifting and can react quicker now. Volumes may not be as strong for local products, but supply changes are likely to stay because they make for a more resilient supply chain. Retailers still want to be seen as supporting local products, and many have made significant investments in their domestic and international supply chains. As the trade deal review approaches, grocers are likely to continue to prioritize Canadian products and respond to demand from shoppers.
Conclusion
In conclusion, the "buy Canadian" movement, which encouraged shoppers to prioritize Canadian products, has waned in recent months. However, experts predict that the movement may return as the Canada-United States-Mexico free trade agreement is up for review and U.S. President Donald Trump continues to make protectionist statements. Shoppers are prioritizing affordability over Canadian origin, but may be willing to pay more for local products if the price is reasonable. Grocers are better positioned to respond to demand for Canadian products due to changes made during the initial "buy Canadian" wave, and the movement is likely to continue to evolve in response to trade rhetoric and economic uncertainty.
