Canadian Retail and Gifts Market
Canada’s gift industry is a vibrant part of the retail sector, driven by strong seasonal demand during holidays like Christmas, Mother’s Day, and other cultural events. Popular gift categories include home décor, personal care items, small electronics, and food gifts, with consumers expecting quality, bilingual packaging, and increasingly eco-friendly products.
What is the gift industry market size in Canada?
Canada’s retail sector is a major economic driver, with core retail sales (excluding vehicles and gasoline) exceeding CAD $508 billion in 2024. Within this, the giftware industry (encompassing gifts, home décor, souvenirs, greeting cards, etc.) is significant – estimated around CAD $10 billion in annual retail sales. Traditional gift shops and card stores alone contributed about CAD $3.5 billion in 2023, with modest growth (~1.2% CAGR over 2018–2023). This indicates a stable but slowly expanding market for gift and novelty retailers in Canada (According to IBIS World).
Seasonal Trends and Consumer Behavior in Canada’s Gift Market
Seasonality plays a major role in the Canadian gifts industry, with the winter holiday season—especially Christmas—representing the peak period for sales. Canadians typically spend around $1,635 during the holiday season, with approximately $744 of that dedicated to gifts. While total spending per person has remained steady in recent years (between $950 and $1,100), consumer habits have shifted toward earlier shopping and greater focus on promotions and discounts. Other key gifting occasions throughout the year include Valentine’s Day, Mother’s Day, weddings, and birthdays, each associated with specific product categories such as chocolates and flowers, household items, or gift cards. In addition to gifts, seasonal decorations see strong demand, with sales spikes not only at Christmas but also during Halloween.
When it comes to product categories, Canadian gift buyers show a preference for both practicality and versatility. Gift cards—especially open-loop types—are consistently the most favored, followed by fashion accessories and apparel (chosen by around 40% of consumers), books and media (32%), electronics (26%), and gaming products (11%). These patterns suggest that Canadian consumers value gifts that are either flexible in usage or provide functional or entertainment value. Wedding gifts average around $145 per guest, and nearly 30% of buyers are open to selecting luxury options, showing that there is a market for both value and premium-tier items. Overall, many consumers are more focused on thoughtful and meaningful gifts than on volume or monetary value.
Online shopping has grown significantly in Canada’s gift sector. Increasingly, consumers are drawn to e-commerce for its convenience and wider selection. Chinese online platforms have also gained substantial traction, with a majority of Canadian shoppers having made purchases from these marketplaces by 2025 due to their broad product range and aggressive pricing. Some of these platforms now rank among the most visited online stores in Canada. Price sensitivity is a defining trait of Canadian shoppers—85% wait for discounts, and 80% compare prices before making a purchase. Retailers have reported that promotional events like Black Friday and Cyber Week are now critical, with over half of consumers identifying Black Friday as the most important shopping moment of the year. Chinese suppliers offering competitive pricing and timely promotions are especially well-positioned to tap into this value-driven market.
Import and Trade Data for Giftware and Consumer Goods
Canada relies heavily on imports to supply its consumer goods and giftware market, with China being one of its most important sources. In 2024, Canada imported approximately USD $62.6 billion in goods from China, making China Canada’s second-largest trading partner after the United States. These imports largely consist of everyday consumer items that fill retail shelves across the country. In the first half of 2025 alone, Canada imported CAD $48 billion worth of goods from China, representing around 12% of Canada’s total imports. Of this, consumer goods — such as household items, apparel, seasonal decorations, novelty gifts, and small electronics — accounted for roughly CAD $15 billion, an 18% year-over-year increase.
Chinese products dominate many gift-related categories due to China’s cost-efficient and scalable manufacturing capabilities. Seasonal decorations, novelty souvenirs, party accessories, and electronic gift items are primarily sourced from China, with cellphone-related imports alone exceeding $7.2 billion in 2024. Fashion accessories, textiles, and home décor — all commonly purchased as gifts — also remain strong import segments.
Overall, China consistently accounts for 8–12% of Canada’s total merchandise trade. While Canada mainly exports raw materials such as minerals, agriculture, and energy to China, the flow of giftware is overwhelmingly one-directional — from China to Canada. This imbalance highlights the strong market opportunity for Chinese small and medium-sized enterprises (SMEs) to supply well-designed, competitively priced consumer products to Canadian retailers.
Canadian wholesalers and retailers, including members of the Canadian Gift Association (CanGift), routinely source internationally, and China remains a core part of their supply chain strategy. Most products are shipped via ocean freight to major entry points such as Vancouver and Montreal. Although there is no free trade agreement between Canada and China, many giftware products fall under relatively moderate Most-Favored Nation (MFN) tariff rates. Duties vary by category — with many basic gift items facing low tariffs, while textiles and apparel may encounter rates of 15–18%. Exporters must also factor in import duties, 5% GST, and applicable provincial sales taxes. Despite these costs, Chinese suppliers typically maintain a price advantage due to manufacturing scale and efficiency.
In short, Canada imports far more consumer goods and giftware from China than it produces domestically. This ongoing demand creates a strong and stable opportunity for Chinese SMEs looking to enter or expand in the Canadian market — especially those who can provide reliable quality, appealing design, and competitive pricing.
Canadian Consumer Preferences and Cultural Factors
Value and Quality-Conscious Shopping
Canadian consumers are highly sensitive to both price and product quality. Inflation has heightened these concerns, with over 50% of Canadians actively hunting for sales or switching to more affordable brands. Gift-giving is no exception—most buyers follow strict budgets and compare options across platforms to maximize value.
Despite their thriftiness, Canadians still expect quality. Practical gifts that are functional and long-lasting (e.g. home tools, personal accessories, tech gadgets) are favored, especially if they are also emotionally meaningful or personalized.
Most Popular Gift Categories
Gift cards dominate the Canadian market due to their flexibility—nearly 80% of recipients report preferring open-loop gift cards like Visa or Mastercard. Following this, top gift categories include:
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Clothing and accessories (especially during winter holidays)
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Books and media
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Electronics (tablets, headphones, gaming gear)
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Toys and games (particularly for children)
These trends point to a preference for practical, high-utility, and entertainment-based gifts. Chinese SMEs that manufacture stylish apparel, trending consumer electronics, or engaging toy sets can tap into these growing segments.
Multicultural Tastes and Design Flexibility
Canada’s multicultural society significantly influences design preferences. Although mainstream consumers tend to favor modern, rustic, or minimalist Western styles, regional and ethnic aesthetics are also in demand. This opens opportunities for:
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Broad-appeal designs with neutral, modern visuals
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Niche gift products for holidays like Lunar New Year or Diwali
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French-English bilingual packaging (especially for the Québec market)
Chinese SMEs should consider customizing packaging or designs for local preferences and language requirements, as well as targeting specific ethnic communities for cultural festivals.
Emphasis on Bilingual and Inclusive Packaging
Canada’s bilingual nature (English and French) mandates dual-language product labels—especially in Québec, where French prominence is legally required. Nationwide, bilingual packaging is seen as professional and inclusive.
Chinese exporters must ensure:
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Packaging and manuals are in both languages
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Gift messages and promotional material are accessible in French
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Legal compliance with labeling requirements
Sustainability and Ethics Matter
Canadian shoppers—especially younger demographics—are increasingly focused on environmental and social responsibility. Over 75% are willing to pay more for products that are ethically sourced or sustainably made. In the gift market, popular eco-conscious items include:
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Recyclable or reusable packaging
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Natural candles, organic textiles, sustainable home décor
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Fair-trade certified or locally supportive goods
Chinese SMEs can gain trust by highlighting green practices, certifications, and ethical production standards in marketing and packaging.
Local Appeal and Collaborative Branding
Despite the importance of imports, many Canadian consumers value locally inspired designs or artisanal gifts. Products that reflect Canadian identity—like maple motifs, indigenous designs, or coastal décor—have strong regional appeal.
Chinese SMEs can consider:
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Collaborations with Canadian designers
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Local-themed variations of their products
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Region-specific designs tailored to Atlantic, Prairie, or Western provinces
Summary
Canadian gift buyers seek a balance of affordability, quality, and cultural sensitivity. Products that are both practical and meaningful—backed by thoughtful design, compliance with bilingual standards, and visible eco-consciousness—resonate most strongly.
Chinese SMEs can succeed by:
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Adapting product lines to fit Canadian tastes
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Offering competitive pricing without sacrificing quality
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Providing bilingual, attractive packaging
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Showcasing sustainability or ethical sourcing initiatives
Strategic Approach to Canadian Sales Channels
For Chinese SMEs entering the Canadian market, it’s often wise to adopt a gradual, data-driven approach. Starting with smaller independent retailers—often accessed via local distributors—allows brands to build a performance track record. This initial traction can then be leveraged when approaching larger national retail chains. Demonstrated sales data helps reduce the perceived risk for major buyers.
Canada’s geography also plays a key role in planning logistics. While the population is vast, it is concentrated in a few provinces (notably Ontario, Québec, British Columbia, and Alberta). To ensure timely fulfillment, many exporters operate from distribution hubs in both Eastern and Western Canada.
Building strong business relationships is equally important. Canadian B2B culture values professionalism, consistency, and a courteous tone. Retailers and distributors appreciate suppliers who are communicative, respectful of timelines, and engaged in the partnership. Hiring a local sales agent or representative can help bridge time zone and language gaps while providing responsive support for retailers.
In summary, Canadian sales success often hinges on:
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Choosing the right mix of wholesale, retail, and online distribution,
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Leveraging trade shows to make multiple connections in one venue,
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Offering reliable logistics and localized support.
With flexibility, persistence, and an adaptive channel strategy, Chinese SMEs can scale effectively in the Canadian gift and retail market.
Sources
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Retail Council of Canada – Holiday Gift Spending Survey (2025)retailcouncil.orgretailcouncil.orgretailcouncil.orgretailcouncil.org
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GiftAFeeling – “Gift Giving Statistics 2025” (Canadian Market)giftafeeling.comgiftafeeling.comgiftafeeling.comgiftafeeling.com
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Canadian Gift Association (CanGift) – Industry Overviewcangift.org
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CCBC Canada-China Trade Report (2025) – Import Data Highlightsccbc.com
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Trading Economics – Canada Imports from China (2024)tradingeconomics.com
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Retail Insider – Chinese Marketplaces & Canadian Shoppers (2025)retail-insider.comretail-insider.com
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Trade.gov – Canada Labeling Requirementstrade.govtrade.govtrade.gov
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Exporteers Guide – Distribution & Retail Buyers in Canadaexporteers.comexporteers.com
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SEExpo Trade Show Info – Toronto Gift + Home Market 2025seexpo.com
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Simon-Kucher Report – Canadian Consumer Trendssimon-kucher.comsimon-kucher.comsimon-kucher.com
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