Consumers across Canada are preparing for a more sustainable and financially cautious holiday season according to the latest EY Future Consumer Index Survey.
While health concerns from the COVID-19 pandemic begin to recede, cost of living and environmental worries are deepening, pushing Canadians to grow more concerned by the country’s economy (93 per cent) and their personal finances (84 per cent), said the survey.
“Although consumers feel the threat of COVID-19 is fading, they are concerned about the rising cost of living which is effecting how they allocate disposable income” said Monica Chadha, EY Canada Retail Leader. “In the face of price increases Canadians are not only trading down to cheaper private label alternatives – they’re also choosing to purchase less all together.”
“Consumers see the festive season as an important opportunity for them to positively express their social values, in what they buy and how they bring people together,” said Elliot Morris, EY Canada Grocery and Consumer Packaged Goods Leader. “With more income now required just to cover the essentials, consumers increasingly want to make informed decisions about the products they purchase and are looking for more information from trusted sources to support that.
“As consumers bring fresh values into this shopping season and into 2023, saving consumers money and driving sustainable efforts should go hand-in-hand for retailers looking to bridge the gap between action and intention.”
Andrea Piacquadio
Key findings from the survey include:
- 74 per cent of Canadians are looking forward to getting “back to normal” and 48 per cent feel eager to catch up on experiences they missed out on due to the disruption caused by the pandemic;
- But 62 per cent indicate growing concerns about the rising cost of living;
- Almost half of respondents are choosing not to increase their spending on their families and over a quarter plan to spend less compared to last year – this is especially true when purchasing gifts for friends (40 per cent);
- When it comes to celebrations, 56 per cent of Canadians are planning to travel to reunite with loved ones over the next six months and 41 per cent plan to spend less on vacation travel during the holidays because rising fuel costs are making travel more expensive;
- Whether buying fewer physical goods (42 per cent) or shopping locally (30 per cent) and choosing gifts with less packaging (40 per cent) – shoppers are taking control by optimizing for both economic and environmental benefits;
- Over a quarter will purchase less food and alcohol for celebratory meals to avoid waste and 44 per cent plan to use less festive lighting and decorations at home to save energy;
- 70 per centof consumers across Canada don’t feel the need to keep up with the latest fashion trends and over half don’t feel the need to keep up with the latest gadgets and technologies;
- When it comes to purchase criteria, 42 per cent report they now care more about the usefulness and longevity of the products they buy.
To learn more about the EY Future Consumer Index, click here.
(Mario Toneguzzi is a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and only Canadian)
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