3 must-watch consumer trends to grow your business

A new BDC report indicates that Canadian consumers are more concerned than ever about how their choices affect the world around them. 

The report identified a series of powerful consumer trends that are creating rich opportunities for entrepreneurs. 

The BDC report is based on a national survey conducted by IPSOS on behalf of BDC. 

1. The socially responsible consumer
Social and environmental concerns are increasingly influential in the purchasing decisions of Canadians.

Many consumers want to buy from companies that adopt high ethical and environmental standards and are willing to pay more for socially responsible and eco-friendly products. 

By the numbers

• Half of Canadians are inclined to buy environmentally-friendly products.
• 75% of consumers would pay more for products and services from a socially responsible company.
• 90% of consumers would stop buying from a company using irresponsible practices.

Strategies for entrepreneurs

Strive to increase environmental and ethical responsibility in your company and supply chain. 

Forge partnerships with responsible suppliers and obtain certifications from trusted third-party organizations to bolster your credibility as a socially responsible business.

Promote your efforts in your marketing but make sure your claims are backed up with facts. Companies that are caught making exaggerated ethical or environmental marketing claims leave themselves open to attack by activists on social media and elsewhere. 

2. The “Made in Canada” advantage
Canadians are proud of products and services made in Canada and the jobs and other economic benefits that local businesses create. A majority now make an effort to buy local or Canadian-made products and many are willing to pay a premium. 

What’s more, Canada is perceived internationally as a “model country,” with open, trustworthy people and safe, high-quality products. 

By the numbers

• Two thirds of Canadians have made an effort to buy local in the past year.
• 30% of Canadians are willing to pay more for a locally made product.

 

Strategies for entrepreneurs

Your business should highlight the local characteristics of your products.

Even if your products are not made locally, your business should emphasize other local features of your operation such as jobs created, R&D, product design and/or product assembly. All of these can lead to premium product positioning.

Promote your company with the “Made in Canada” brand at home and abroad to capitalize on positive perceptions.

For more information on this trend, read BDC Chief Economist Pierre Cléroux’s column in Profit$ magazine, Canada: A powerful brand. 

3. The healthy consumer
The demand for health and wellness-related products is increasing rapidly.

Consumers are actively seeking products and services to help them maintain and improve their health. This trend is changing the type of products they purchase for their family and how they spend their leisure time.

It will continue to accelerate as the population ages—about 25% of the population will be over the age of 65 by 2031.  

By the numbers

• 33% of Canadians are willing to pay a premium for health-enhancing products.
• $935 is the average annual per capita personal expenditures on health and wellness in Canada.

 

Strategies for entrepreneurs

Highlight health-related benefits of your products, including research-backed results that link the product’s ingredients to health benefits.

Adapt existing products and services or provide new ones to meet the public’s desire for a healthier lifestyle.