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Understanding Canadian product labels: Made in Canada vs. Product of Canada
In a world where shopping choices are influenced by values and ethics, understanding product labels has become crucial for consumers, especially among the younger generations. A recent survey has shed light on how Canadians perceive the terms “Made in Canada” and “Product of Canada,” revealing significant shifts in buying habits once the definitions are clarified.
The confusion around labels
Many Canadians are unaware of the differences between these two designations. Initially, 37% of respondents expressed a preference for “Made in Canada,” while only 23% favored “Product of Canada.” However, once the definitions were explained, the numbers flipped dramatically.
Only 12% preferred “Made in Canada,” while a whopping 66% chose “Product of Canada.” This shift highlights a critical gap in consumer knowledge that retailers and marketers need to address.
Why does it matter?
The distinction between these labels is not just a matter of semantics; it reflects the amount of Canadian content in the products.
For non-food items, the Competition Bureau mandates that a product labeled “Product of Canada” must contain at least 98% Canadian content, while “Made in Canada” requires only 51%, provided it includes a qualifying statement about imported content. For food products, the rules are slightly different, with “Product of Canada” indicating that all major ingredients and processing are Canadian, whereas “Made in Canada” means the last substantial transformation occurred in Canada.
Shifting consumer behavior
The survey revealed that 63% of Canadians are actively seeking out Canadian products, with 53% specifically avoiding U.S. products. This trend is particularly pronounced among younger consumers who are increasingly conscious of their purchasing decisions. Local grocers are noticing a surge in demand for Canadian products, prompting them to adjust their inventory accordingly.
As Gary Sands from the Canadian Federation of Independent Grocers noted, this demand reflects a deeper connection to Canadian identity and values.
Supporting local businesses
As consumers become more aware of the implications of their purchases, supporting local businesses has never been more important.
According to the Canadian Federation of Independent Business, shopping at local stores keeps a significant portion of the dollar within the community, fostering economic growth and sustainability. This aligns perfectly with the values of Gen-Z and young adults who prioritize ethical consumption and local support.
Conclusion
Understanding the nuances of product labeling is essential for making informed purchasing decisions. As Canadians become more educated about the differences between “Made in Canada” and “Product of Canada,” their shopping habits are likely to evolve. This shift not only impacts individual choices but also influences the broader market, encouraging retailers to prioritize Canadian products and support local economies.
