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As consumers balance celebration with caution amid inflation and shifting priorities, NIQ provides data to help retailers plan for a prosperous holiday season
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CHICAGO — NielsenIQ (NIQ) (NYSE: NIQ), a leading consumer intelligence company, today announced new insights into Canadian consumer sentiment and spending patterns heading into the holiday season. Based on NIQ’s most recent inflation analysis, consumer surveys and Consumer Outlook: Guide to 2026 report, Canadians are demonstrating resilience to economic pressures and uncertainty by adapting how and where they spend—prioritizing savings, promotions, and practicality over patriotic purchasing alone.
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Inflation Fatigue and Value Shape Holiday Spending
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Canadians are feeling financial strain but showing resilience with smarter spending and greater focus on relevance, not excess.
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- Fast-moving consumer goods (FMCG) inflation shifted between 2.1% – 3.1% from December 2024 to August 2025.
- Smaller brands drive 38% of absolute dollar growth in FMCG.
- Consumer confidence rose to 60.3 points in September, yet 36% feel financially worse off. Rather than halting spending, shoppers are cautiously spending.
- 49% will stock up on sale items, while 42% report only having money for essentials.
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‘Made in Canada’ Sentiment Softens as Value Takes the Lead
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Canadian shoppers are still loyal to homegrown products but are more open to global alternatives that deliver affordability.
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- “Canadian Loyalists” dropped to 14% (–3 points from early 2025).
- Avoidance of U.S. brands fell 7 points, now at 30%.
- “Made in Canada” goods still outperform U.S. products (+5.3% vs. –7.9% respectively year to date, Sept 2025), but the gap is narrowing.
- Retailers are balancing national origin with affordability, expanding private labels and discount options.
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Resilience Redefines Retail Strategy
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Canadian retailers are rethinking their playbooks to meet consumers where they are, prioritizing value, convenience, and relevance over tradition.
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- More than 100 new discount stores have opened in the past two years, appealing to consumers’ need for value.
- Smaller, agile brands drive 38% of FMCG dollar growth.
- Consumers increasingly reward brands that deliver niche appeal and sustainability without sacrificing price.
- Online FMCG sales exceed 10%, up 5 points in two years, as retailers invest in digital tools that simplify the path to purchase and save time.
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“As the holidays approach, Canadians are redefining what celebration looks like, choosing smarter spending over splurging and supporting local brands when it aligns with value,” said Mike Ljubicic, Managing Director, Canada, NielsenIQ. “Retailer success will come from making products easy to find, affordable, and meaningful to consumers’ everyday lives.”
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NIQ’s Made in Canada report series and related insights can be accessed here and here.
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About NIQ
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NielsenIQ (NIQ) is a leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. Our global reach spans over 90 countries covering approximately 85% of the world’s population and more than $7.2 trillion in global consumer spend. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™. For more information, please visit www.niq.com.
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Forward-Looking Statements Disclaimer
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This press release may contain forward-looking statements regarding anticipated consumer behaviors, market trends, and industry developments. These statements reflect current expectations and projections based on available data, historical patterns, and various assumptions. Words such as “expects,” “anticipates,” “projects,” “believes,” “forecasts,” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future outcomes and are subject to inherent uncertainties, including changes in consumer preferences, economic conditions, technological advancements, and competitive dynamics. Actual results may differ materially from those expressed or implied in these statements. While we strive to base our insights on reliable data and sound methodologies, we undertake no obligation to update any forward-looking statements to reflect future events or circumstances, except to the extent required by applicable law.
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