06.02.2025

According to KPMG, “Over 80 percent of Canadian consumers are buying local products in response to U.S. tariffs… and three quarters are willing to pay more for a Canadian product over one that’s made in the U.S.”

This provides a unique opportunity for Canadian Consumer Packaged Goods (CPG) brands to breakaway within this uncertain environment.

New tariffs, inflation, supply chain challenges, and headlines about a potential recession have many businesses on edge. But this economic turbulence presents a clear shot for Canadian brands.

Now is the time for CPG brands food, beverage, personal care items, and household products to invest in strategic packaging design for new products or consider rebranding. Brand strategy, paired with emotionally resonant packaging, fosters meaningful connections with consumers, increasing market share and driving success.

Team Canada is Leading

Canadian consumers are now prioritizing local products, with shoppers increasingly supporting local businesses in stores, malls, and on social media.

Local or national CPG brands, whether established or startups, have an opportunity to stand out through unique positioning, distinctive brand character, and compelling packaging design when placed alongside global competitors.

Just as consumers rallied around local businesses during the early days of the COVID-19 pandemic, the growing movement now is to fully support Canadian-made goods in light of rising tariffs and inflationary pressures. To succeed, it’s crucial to evaluate and update packaging based on research, strategy, and positioning not just aesthetics.

Brand strategy defines key consumer segments, positioning, and brand character essential to crafting packaging that meets or exceeds value and price perceptions. While aesthetics play a big role as the first point of contact, packaging design establishes the first impression, relaying a compelling story that resonates with consumer segments.

Recently, I attended CFHA NOW, Canada’s largest trade show for natural, organic, and wellness products, which highlighted how some Canadian CPG brands are adapting to these challenges. The event showcased how innovation and thoughtful brand design, from packaging to positioning, are enabling forward-thinking companies to launch new products, grow, and thrive during these potentially challenging times.

Game-Changing Packaging

Packaging is more than just a vessel for a product. It’s the first thing consumers notice when browsing shelves in-store or online. Whether for established Canadian CPG brands or new category entrants, packaging plays a key role in influencing purchase decisions.

Packaging design can influence consumer behavior by capturing attention, fostering brand recognition, and improving financial performance. If packaging isn’t well-positioned, doesn’t deliver the right message, or fail to reflect the brand’s story and values, a company misses the opportunity to connect with its audience.

In today’s environment, where consumer behavior has shifted and competition is fierce, many local brands are using the “local” positioning tactic, making differentiation challenging. Add to that “maple washing,” which some companies exploit to get more credit for being Canadian. “Prepared in Canada” is not the same as “Made in Canada.”

Despite the buy local movement, a product’s market reception isn’t solely determined by where it’s made, but also by how it’s presented through both packaging and brand positioning. Established brands have built up their positioning with little room for competition.

Research shows that 72% of consumers admit that packaging design influences their purchase decisions. A comprehensive brand strategy outlines clear consumer segments so products are uniquely perceived, thereby boosting value and emotional connection.

Pushing Past the Competition

Given the current economic landscape, most business owners’ initial thought is to delay any investment, especially in brand and packaging design.

However, this moment is the perfect opportunity to focus on these critical elements. Here’s why:

INCREASED FOCUS ON LOCAL

Canadians are increasingly support local businesses. Product storytelling highlighting Canadian roots resonates with consumers seeking locally made goods. Messaging should demonstrate community investment and commitment to well-being.

 

SHIFTING MARKET PREFERENCES

Consumer habits continue evolving during uncertain times, with emotional triggers playing a significant role in purchasing decisions. Strategic designs that communicate values rather than just aesthetics help brands differentiate through ideology and culture.

PERCEIVED VALUE ADVANTAGE

Packaging design is not just about visual appeal; it also needs to elevate the perceived value of a product. Although consumers often associate high- quality packaging with higher-end products, rising prices due to tariffs and inflation may change this perception.

 

GROWTH OPPORTUNITIES

Companies that do not rely on U.S. exports have the opportunity to focus on growing exponentially in the Canadian market. Through a packaging audit and strategy process, companies can leverage consumer decision-making to ultimately increase local sales and drive substantial growth.

Packaging That Scores Big

Whether for a startup or a redesign, packaging design is more than a cosmetic update. The goal is to set how the brand connects with audience segments, positions the product, and communicates the brand’s truth, distinction and character.

Our process always starts with target research, uncovering market trends to identify opportunities. By understanding audience segments, the packaging design ensures product features resonate with specific ‘tribes,’ from eco-conscious consumers to those seeking convenience.

While not always possible due to market limitations, sustainable materials are first considered to meet the growing demand for eco-conscious products while balancing scalability with cost effectiveness.

In its first year, Sapadilla became a leading local brand in home cleaning, attracting loyal customers and landing in a range of major retailers.

Sapadilla Soap Case Study:  Defend Your Own Future 

A real-world example of the combined power of brand strategy, positioning, and design can be seen in our client project, Sapadilla Soap Co. a Canadian brand committed to creating ethical, natural cleaning products.

Launched at the start of the 2006 recession, Sapadilla leveraged economic uncertainty as an opportunity to pivot toward a stronger future. Through strategic analysis, we identified emerging trends such as the de-commoditization of cleaning products and the rise of “counterscaping.”

Initially, Sapadilla aimed to solely target eco-conscious consumers, but our research showed the brand could expand to a broader market as the demand for eco-friendly products gained mainstream interest. As a result, we set out to create a brand that balanced style with sustainability, offering consumers a brand that aligned with their values.

Due to scale limitations and their effect on pricing and margins, we needed to position Sapadilla’s products as a premium offering for mainstream grocery stores. During our research, we discovered a few key trends, including shrinking living spaces in dense cities such as Vancouver, which drove our final positioning: consumers were seeking products they could leave out on the counter, hence the concept of “counterscaping.”

The use of type as texture resulted in the packaging ‘literally’ communicating the brand’s values in its own voice while adding to the visual appeal. The typographic design served both functional and aesthetic purposes.

In its first year, Sapadilla became a leading local brand in home cleaning, attracting loyal customers and landing in a range of major retailers like Whole Foods, The Home Depot, and London Drugs. Within six years, the brand was acquired by an established U.S. company outside the natural soap category for an undisclosed eight-figure sum.

The Breakaway Moment

While some Canadian businesses may hesitate to invest in brand design, forward-thinking companies recognize the growing demand for local products and the power of emotionally resonant visual storytelling. Whether launching a new CPG venture or rebranding an existing product, investing in packaging now needs to authentically connect with Canadian consumers and transform market challenges into competitive advantages.

By creating packaging that speaks to local values and aspirations, businesses can build deeper, trusted connections in an evolving marketplace.

 


Ready to turn shifting market pressures into brand-building opportunities? Let’s create packaging that connects with Canadian consumers on a deeper level.


Article by Cory Ripley, Principal, Creative Director and Strategist at Exhibit A: Design Group, a full-service strategic brand-building boutique studio. He is also a program advisor and sessional instructor at various design universities in Vancouver, Canada. He has taught past courses on Design Thinking and Advertising Design. He currently instructs a Retail Packaging Workshop in Capilano University’s IDEA Program. His award-winning strategic brand design work has been featured in the National Post, Communication Arts, Applied Arts, and GDUSA.

“Exhibit A studio consistently meets challenges and exceeds expectations.”