A new report suggests three-quarters of Canadian shoppers are willing to pay more for homegrown food, yet nearly two-thirds ultimately choose cheaper imported options.

PwC Canada polled 1,000 locals who said they would pay a premium for food produced in Canada, though 62% ultimately chose a lower-priced imported alternative—exceeding the global average (56%).

“This disconnect reflects the tension between Canadians’ desire to shop local and the reality of their purchasing decisions at checkout,” PwC Canada spokesperson Elisa Swern said in a news release. 

“Canadians value local products and want to support homegrown businesses, but price remains a powerful influence, especially in today’s economic climate.”

Experts cite international events like the Russian-Ukraine war as a driver of food inflation and the Canadian dollar's lesser value than the U.S. dollar.

MORE: https://t.co/wy7s0bRrTz pic.twitter.com/lIZpPr65pg

— Rebel News (@RebelNewsOnline) July 12, 2023

Before trade disputes and rising food costs, both largely unaddressed by the Liberal government, heightened household financial stress, the Agri-Food Analytics Laboratory repeatedly identified grocery affordability as a major concern for Canadians.

“While many Canadians say they support local, price remains the most influential factor at the checkout,” Dr. Sylvain Charlebois told Rebel News. “Over the past two years, consumer sentiment is increasingly shifting toward value over origin.”

“…we are expecting a family of four with the same demographic makeup to spend $16,833.67 [in 2025],” according to Canada's Food Price Report. 

A family of four is projected to spend $801.56 more on food this year, it said, with food inflation expected to remain above pre-pandemic levels. It remains high at 3.4% for May, but down 0.4% from April.

Prime Minister Trudeau says he's giving major grocery retailers until Thanksgiving to come to Ottawa and explain what they're doing to stabilize/lower food costs.

If the grocers don't act, Trudeau says "the federal government will take action." pic.twitter.com/XA43srPPk5

— Rebel News (@RebelNewsOnline) September 14, 2023

When asked about lowering food costs, Dr. Charlebois said the matter is complex. 

“Tariffs, including those tied to ongoing trade tensions with the U.S., are certainly part of the equation,” he said. “But so are domestic regulatory burdens, logistical inefficiencies, supply chain bottlenecks, and the limited competition in our retail sector.” 

Global factors like geopolitical conflicts (e.g., the Ukraine war), energy costs, inflation, and the weak Canadian dollar are also driving up food prices, according to the Food Price Report.

“Addressing food affordability requires a multifaceted approach—not just reactive trade policy,” said Dr. Charlebois, though changing tariffs may reduce the price difference between domestic and imported goods.

A Loblaw report forecasts price increases on many grocery items, despite prior assurance that the Canada-U.S. trade war would not immediately impact food prices. 

Grocers and manufacturers were already adapting supply chains and informing customers to mitigate these price increases, as recommended by PwC Canada in their report.

Tariffs remain on various imported U.S. foods (produce, rice, pasta, dairy, coffee) and health products (soap, shampoo, cosmetics).

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