Canadians plan to cut holiday spending 11 per cent, but more will pay extra for Canadian-made goods, PwC finds

Canadians are heading into the holiday season planning to spend less, but to steer more of what they do spend toward goods made at home, according to PwC Canada’s 2026 Canadian holiday outlook, released Tuesday. Respondents plan to spend an average of $1,487 on gifts, travel and entertainment, down 11 per cent from last year, the firm said. At the same time, 54 per cent said they would choose a more expensive Canadian-made product over a similar imported one, up from 49 per cent a year earlier.

“Canadians are cutting back, but they’re drawing a hard line on where their money goes,” said Adam Boutros, partner and national consumer markets leader at PwC Canada. Nearly three in four respondents (72 per cent) said they are actively looking for alternatives to U.S.-made products, Global News reported, and only 13 per cent plan to shop across the border this holiday season, compared with 20 per cent in 2024. PwC said the survey was done in July and early August, before the latest round of tariff escalation, so the results may understate how strongly Canadians feel now.

Older shoppers account for most of the pullback. According to the full report, Gen X respondents plan to spend 21 per cent less than last year and baby boomers 18 per cent less, while millennials expect to cut back by six per cent. Gen Z is the only group planning to spend more, up eight per cent, which PwC said likely reflects stabilization rather than a true increase. Even while trimming budgets, two-thirds of baby boomers (66 per cent) said they would pay more for a Canadian-made product. Households with children plan to spend nearly twice as much as those without.

Most shoppers are trying to stretch their money. Three in four (75 per cent) say they are taking steps to make their budgets go further, and 69 per cent plan to buy less expensive alternatives. Travel shows the steepest category decline, with planned spending down 14 per cent as many people stay close to home or with friends and family, the Financial Post reported. Timing is shifting by age too: 38 per cent of Gen Z and 33 per cent of millennials plan to shop over the Black Friday weekend, while 43 per cent of baby boomers plan to hold their spending until December.

Planned budgets vary by region. British Columbians expect to spend the most, at $1,639 (down 10 per cent), followed by Ontario at $1,567 (down 12 per cent) and Quebec at $1,497. Quebec is the only region where spending intentions showed no significant change from last year. Atlantic Canadians plan to spend $1,349 (down 15 per cent), and people in Alberta, Manitoba and Saskatchewan $1,261 (down 18 per cent), the steepest regional drop.

Artificial intelligence is gaining ground, but slowly. Twenty-eight per cent of respondents plan to use AI at some point in their holiday shopping, up from 17 per cent last year, mostly to research and compare products. Yet 59 per cent of millennials and Gen Z said they don’t plan to use it at all. Physical stores remain the top channel for discovering and buying gifts across every generation, 40 per cent plan to shop both online and in stores, and 74 per cent said they are prioritizing offline and in-person activities this season.

The trade fight could also show up in prices. PwC said new Canadian surtaxes on selected U.S.-origin goods, including certain appliances, electronics, food products and manufactured goods, could raise costs for some importers and retailers. Because the surtaxes apply to specific tariff classifications rather than whole retail categories, it said, the effect will vary from product to product.

The report is based on an online survey of 1,016 people conducted between July 30 and Aug. 6, The Canadian Press reported. The Canadian Research Insights Council, an industry group that promotes polling standards, says online surveys cannot be assigned a margin of error because respondents are not selected at random from the population.

This article is general information and is not investment advice.

Sources: PwC Canada news release (Oct. 6, 2026); PwC Canada, 2026 Canadian holiday outlook; The Canadian Press via BNN Bloomberg; Global News; Financial Post.