Canadians are tightening their personal care budgets, but 44% say they now spend more on these products than a year ago, signalling that price inflation, rather than increased consumption, is the current growth driver.
"Its strong ties to everyday hygiene, combined with a growing emphasis on wellness, versatility and aesthetics, give the category lasting resilience, even as consumers tighten their belts amid economic uncertainty."
Meghan Ross, Senior Research Analyst - Home & Beauty
Canadians are tightening their personal care budgets, but 44% say they now spend more on these products than a year ago, signalling that price inflation, rather than increased consumption, is the current growth driver. Value-driven behaviours are steering purchasing decisions as consumers reconsider non-essentials but preserve their investment in core hygiene. Enthusiasm from younger consumers will help propel supplementary categories and formats, while older consumers stick to their tried-and-true hygiene-focused habits.
The recent implementation of additional tariffs from the US has reinvigorated a powerful wave of national pride, prompting a renewal of ‘Made in Canada’ product searches. With 76% of consumers preferring to buy personal care products that are made in Canada prior to the tariff announcement, these renewed trade tensions are sure to boost interest in brands that have legitimate Canadian credentials.
Looking ahead, innovative brands that create hybrid products spanning efficacy and wellness will justify higher prices in a value-conscious market and gain consumer attention. However, lasting economic strain risks leading to persistent down-trading and eroding brand loyalty, as shoppers streamline their repertoires to save money.
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