Restaurants, Farmers’ Markets, and Local Shops See Significant Growth in 2025

THUNDER BAY – BUSINESS NEWS — Are you checking labels, buying Canadian, and putting products from the United States back on the shelf? If you are you are doing exactly what the majority of Canadian shoppers are doing.

This trend is backed up in a new report from Interac Corp. shows a major shift in how Canadians are spending their money, with small and medium-sized businesses (SMBs) recording 15 million more Interac Debit transactions from April to July 2025 compared to the same period in 2024.

The findings highlight how global tariffs and economic uncertainty are reshaping shopping habits, with more Canadians choosing to support local businesses instead of turning to big-box or international retailers.

Nearly eight in ten Canadians (78%) say they have redirected at least one monthly purchase to a local business since tariffs were introduced. A quarter are shifting three to five purchases monthly, while 20% say they’ve redirected six or more.

“Earlier this year, consumers told us they intended to shop more locally in light of tariffs — and they’ve followed through,” said Debbie Gamble, Group Head, Chief Strategy & Marketing Officer, Interac. “Our summer data snapshot shows Canadians are using their spending power with great intention — responding to global pressures through where they shop, what they buy and how they choose to pay.”

Restaurants, Markets, and Local Shops See Boost

The strongest growth was seen in small restaurants, which saw their transaction volumes grow twice as fast as chain restaurants. SMB convenience stores and tourism-related businesses also reported strong gains.

Other highlights include:

• 42% of Canadians say they are spending more on fresh produce from farmers’ markets.

• 30% are spending more on baked goods from local bakeries.

• 21% are spending more on premium jams, sauces, and honey from Canadian vendors.

This suggests Canadians are not only shopping locally out of necessity but also turning to “small indulgences” — foods and comfort items — to cope with global financial uncertainty.

What Canadians Won’t Give Up

Despite tighter budgets, certain “essential luxuries” remain priorities:

• Health and wellness purchases: top priority for 35% of Boomers and 27% of Millennials.

• Streaming services: essential for 30% of Gen Z and 23% of Gen X.

• Personal care products: non-negotiable for 26% of Gen Z.

Made in Canada — or Anywhere but the U.S.

The survey also found that 70% of Canadians check product labels for Canadian origin before purchasing. If a Canadian option isn’t available, 65% prefer goods made outside the U.S. — a clear sign that trade tensions are influencing consumer choices.

Interac Debit: A Canadian Way to Support Local

The shift to local isn’t only about what people buy — it’s also about how they pay. Interac reports that many Canadians don’t realize paying with Interac Debit helps small businesses save on transaction fees, keeping more dollars in Canada.

• 42% of Canadians were unaware of this benefit.

• 57% of Gen Zs say knowing this makes them more likely to pay with debit.

“How we choose to pay can make a meaningful difference for small businesses,” Gamble added. “Using Interac Debit helps keep more money with Canadian entrepreneurs — assisting them to reinvest in their businesses, hire locally, and contribute to their communities.”