"When times are tight, that does not mean consumers are willing to forgo holiday celebrations. Instead, Canadians are searching for ways to make these times feel celebratory without breaking the budget."
Candace Baldassarre, Senior Analyst
Canada’s holiday market remains resilient despite intense cost pressures, underscoring consumers’ strong attachment to seasonal rituals. But, not all holidays are celebrated, despite being enjoyed. For example, while only 44% of Canadians say they actively celebrate Canada Day, 74% say they enjoy doing so. This gap, coupled with the popularity of multicultural holidays, signals how much untapped enthusiasm exists for inclusive, accessible experiences. Pressure to be economical is clear. Inflation has fundamentally changed the holiday landscape, driving demand for budget bundles and redirecting innovation toward value and convenience. Standout examples, from digital AR experiences like Vaughan Mills’ immersive Christmas library to meal simplification at mass retail, reveal how brands are adapting to deliver authenticity and practicality alongside inspiration. The greatest opportunity for brands and retailers is harnessing cross-cultural energy, with 57% of Canadians open to participating in traditions beyond their own. However, the most significant threat remains the ongoing cost-of-living squeeze, which not only restricts discretionary spend but also heightens skepticism towards superficial or overtly commercial advertising. Successful players will be those who create genuine, accessible holiday moments—rooted in cultural empathy and financial transparency—and avoid the pitfalls of formulaic sales pitches.
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