Knowing ‘Made in Canada’ vs. ‘Product of Canada’ changes spending: survey

Understanding the "Made in Canada" and "Product of Canada" Labels

Introduction to the Labels

The terms "Made in Canada" and "Product of Canada" often confuse consumers, but understanding their distinctions can significantly influence purchasing decisions. These labels are crucial for those seeking to support local businesses and products, yet their meanings and implications are often misunderstood.

Survey Findings: Consumer Preferences

A recent survey by Narrative Research revealed that 37% of Canadian consumers prefer "Made in Canada," while 23% favor "Product of Canada." However, once the definitions were explained, preferences shifted dramatically, with 66% choosing "Product of Canada." This shift highlights the impact of consumer education on purchasing behavior.

Consumer Insights: A Closer Look

Lorna Merrick, a conscious shopper from Medicine Hat, exemplifies this shift. She prioritizes "Product of Canada" to ensure more money stays within the economy. She avoids U.S. products, opting for alternatives from Mexico or Japan when necessary, illustrating how awareness drives her choices towards supporting Canadian content.

Defining the Labels: What They Mean

The Canadian Competition Bureau and Food Inspection Agency clarify these labels. "Product of Canada" requires 98% Canadian content for non-food items, while "Made in Canada" needs 51% with a qualifying statement. In food, "Product of Canada" ensures nearly all ingredients and processing are Canadian, whereas "Made in Canada" refers to the final transformation occurring in Canada, regardless of ingredient origin.

Impact on Retailers: Changing Practices

Independent grocers report increased demand for Canadian products, leading some to alter their sourcing, avoiding U.S. goods. This shift reflects a growing consumer preference that influences retail practices, as stores respond to customer demands for clear labeling and local support.

Broader Implications: Supporting Local

The Canadian Federation of Independent Business emphasizes that supporting local businesses keeps more money within the community. Thus, consumers are encouraged to shop locally, even if labels are unclear, to bolster the local economy, highlighting the broader impact of informed consumer choices.