Economic uncertainty is changing how Canadians spend and how brands must show up. Richard Fofana, executive vice president, strategy at UM, explains why culturally attuned, distinctive, and value-centered marketing helps brands cut through volatility and unlock growth even when consumer confidence wavers.
Canadians are feeling the squeeze. Recent polling shows that 61% feel financially worse off than they were in 2020, and nine in 10 say the cost of essential goods such as food and housing has become more difficult to manage.
As consumer confidence fluctuates, shoppers are reassessing their brand choices. A 2024 study by Accenture found that 72% of consumers are more likely to switch brands now versus five years ago, with premium brands at even greater risk as people trade down to cheaper alternatives.
While this presents significant challenges to marketers, opportunity remains. At UM, we believe that disruption can reveal new paths to growth and forge stronger brands. Consider the launch of Kraft Dinner during the Depression, providing affordable meals; or Airbnb’s meteoric emergence from the 2008 financial crisis; or Netflix’s post-pandemic growth acceleration. Brands that adapt with agility, strengthen cultural relevance, and build meaning outperform during a downturn.
The goal is not to survive. The goal is to thrive.
Seven out of 10 Canadians see the economy as ‘poor’ or ‘very poor’. This negative sentiment affects purchase behavior, with people trading down to cheaper options, delaying discretionary purchases, and scrutinizing every dollar spent.
Trust, too, has taken a hit. A recent bread price-fixing investigation that resulted in a major Canadian grocer paying a CA$500m settlement became a cultural flashpoint, fueling wider skepticism toward brands.
These patterns are not unique to Canada. Globally, we have seen households in the UK, Germany, and Australia adopt similar value-driven shopping habits and increased brand scrutiny.
However, the Canadian market has its own nuances. Consumers reward brands that reflect Canadian values of care, community investment, and inclusivity, which in turn earn greater resilience in downturn conditions. They respond strongly to proof, not promises. Initiatives like AMEX Shop Small, which supported local small businesses and their communities, exemplify this.
Marketing budgets are often the first to shrink when economic anxiety is high. The compounding risk? Doubling down on short-term tactics at the expense of brand building.
A narrow focus on performance media, now accounting for a sizeable 69% of total marketing spend, can provide temporary lifts but often at the cost of long-term brand growth.
Many Canadian consumers are trading down within categories or shifting to private label alternatives. Anxiety is reshaping how people evaluate price, convenience, and brand allegiance.
Behavioral economists such as Kyla Scanlon note that periods of economic stress trigger a more defensive mindset, which leads people to seek greater certainty from brands they buy. Indeed, brands seen as ‘consistent’ delivered 111% greater growth in 2025 versus those seen as ‘not consistent,’ according to Kantar Brand Z research.
Skepticism towards advertising continues to climb. The Edelman Trust Barometer shows trust in institutions declining in many developed markets, and Canada is no exception.
In this environment, consumers crave honesty, transparency, and cultural integrity. Messages that feel exaggerated or opportunistic are rejected. Messages that feel helpful and human are embraced.
Despite these challenges, growth is still possible. The brands that succeed will do so by leaning into cultural nuance, focusing on brand meaning, and applying more adaptive ways of working.
Downturns often prompt brands to retreat to category conventions. Everyone starts using the same price-based messaging, utility-only tone, and the same ‘best practices.’ This is precisely the moment to resist convergence and algorithm-fueled conformity.
There is an even greater imperative today to stand out, leveraging your brand’s distinct and ownable benefits and how you uniquely fit into consumers’ lives. This also enables marketers to create recognizable signals that cut through even when budgets are under pressure. Meaningful differentiation is not a luxury. It’s an impact multiplier.
Value is now measured across both functional and emotional dimensions. Brands that show up with helpfulness, clarity, and empathy earn disproportionate returns.
BMO’s Bills Paid on Time initiative helps younger Canadians reduce credit card debt. This functional assistance – delivered with cultural sensitivity – builds meaningful differentiation in a crowded banking category.
Economic uncertainty requires quicker cycles of testing, adapting, and learning. Agile marketing frameworks help brands respond to change without losing strategic alignment.
Consider delivery app SKIP and its ‘Inflation Cookbook’. As grocery prices climbed, the brand created an AI-powered tool that helped Canadians find healthy, affordable meal options – and facilitated ingredient delivery over its platform. It was rapid, relevant, and culturally attuned – the type of added-value responsiveness that consumers reward.
One of the core principles within UM’s Full Colour Media philosophy is to maximize growth potential by harnessing culture at a granular level. Our ‘3V’ growth model, based on a multi-year dataset analysis of 10,000-plus brands across 17 markets, is the first of its kind to quantify the cultural currency of a brand.
The 3V breakdown: vibrancy ensures brand connections resonate on an emotional and cultural level. Visibility ensures brands show up where attention actually is. Variability powers differentiation, distinctiveness, and memory structure.
Together, these 3V elements allow marketers to identify nuanced opportunities for growth, even in difficult conditions.
Boston Pizza’s ‘Team Up for the Cup’ leveraged vibrancy and variability to tap into a distinctly Canadian cultural moment: the country’s 30-year National Hockey League championship drought. By encouraging fans to unite to support ANY Canadian team for a collective win, the brand sparked a national debate and delivered business results, outpacing a constrained restaurant category.
Economic pressure will continue to shape consumer behavior, but it does not need to limit brand ambition. By embracing nuance, doubling down on differentiation, and treating culture as a growth multiplier, Canadian marketers can find opportunity where others see only constraint. This is a moment to show leadership, not retreat. The brands that stand against bland, build meaning, and maintain confidence will emerge stronger and thrive.
In challenging times, growth belongs to the marketers who stay curious, stay responsive, and stay connected to culture. The path may be steep, but the rewards are real.
