Six in 10 Canadians are willing to open their wallets wider to support domestic brands, yet a massive disconnect remains between consumer intent and the reality of the retail experience.
For Canadian small and medium-sized enterprises (SMBs), this represents a significant untapped opportunity to capture market share by simply making their origins more visible. The latest data from the Business Development Bank of Canada (BDC) reveals that while nearly 60% of consumers are willing to pay more for Canadian-made products, only 40% of them actually find it easy to identify them. This gap suggests that many local businesses are leaving money on the table by failing to clearly communicate their Canadian roots to a domestic audience that’s increasingly eager to “vote for Canada” with their purchasing power.
Bridging the gap between desire and discovery
The appetite for Canadian-made goods isn’t just a sentimental preference; it’s a measurable financial commitment. On average, shoppers say they’d be willing to accept a price increase of about 23% for products and services if they knew they were domestically made. This willingness to pay a premium exists even though two-thirds of Canadians base most of their purchases on price. It seems the “Canadian-made” tag acts as a value multiplier that can help SMBs overcome the price sensitivity often associated with smaller production scales.
However, the path to purchase is frequently blocked by a lack of clarity. More than a third of consumers say it’s difficult to identify Canadian options, reporting that unclear labelling and packaging create a significant hurdle. For an SMB owner, this is a clear signal to audit their branding. If your product is designed, sourced or manufactured here, that information needs to be front and centre, not buried in the fine print.
“We’re seeing a fundamental shift in how Canadians view their role in the economy,” says KJ Lee, CEO at Employment Hero Canada. “Business owners who lean into their local identity aren’t just selling a product; they’re offering a way for consumers to invest back into their own communities, but that only works if the connection is crystal clear.”
While the cost of living remains a top concern for most households, Canadian SMBs shouldn’t feel they need to win a race to the bottom on pricing. The BDC report highlights that nearly two-thirds of respondents say quality and durability are among their top considerations when buying a product or service. This is where local businesses can truly shine. By positioning Canadian-made goods as a high-quality investment rather than just a budget option, SMBs can align themselves with the premium consumers are already prepared to pay.
This trend is particularly strong as consumers look for value beyond the initial transaction. The data indicates that discounts and brand reputation also play significant roles, but the perceived reliability of a local partner carries immense weight. For employers, this means that investing in a skilled local workforce isn’t just a cost; it’s a key part of the marketing story that justifies a higher price point.
“The data shows that value isn’t just about the lowest number on the receipt,” says Lee. “It’s about the trust and longevity that comes with a domestic brand, and Canadian employers have a unique opportunity to lead with that story to build long-term loyalty.”
Clearer signals lead to bigger baskets
The demand for better visibility is growing. Consumers are tired of playing detective in the aisles, with many suggesting that simple visual cues or a standardized “Product of Canada” label would significantly improve their ability to choose local. Until such a standard is ubiquitous across all sectors, individual businesses must take the lead. This means using your website, social media and physical packaging to tell the story of your Canadian workforce and your local impact.
It’s also worth noting that competitive pricing and stronger online visibility were cited as key factors that would encourage more frequent Canadian purchases. By highlighting your domestic operations, you’re not just moving units; you’re building a brand that resonates with a more conscious consumer base. For SMBs, the goal is to ensure that the 60% of Canadians who want to support you don’t have to work hard to do so.
“SMBs are the backbone of the Canadian economy, and it’s clear the public wants to support them,” Lee explains. “The challenge for employers now is to remove every ounce of friction from that support by being unapologetically Canadian in their presentation.”
For the Canadian employer, the takeaway is simple: don’t hide your light under a bushel. If you’re employing people in Ontario, sourcing materials from Alberta or designing software in British Columbia, make that part of your core value proposition. The market has given you permission to charge more, provided you can prove the quality and the origin.
As we look toward the future, the businesses that will thrive are those that simplify the “buy local” journey. Whether it’s through clearer packaging, better SEO for Canadian-made keywords or physical signage in-store, the goal is to make the choice easy. An origin story isn’t just a fact; it’s perhaps the most effective tool for standing out in a crowded global marketplace.
