Canadian Newcomers and Brand Preferences: A Changing Consumer Landscape

The Consumer Landscape

It’s not a surprise how important New Canadians are to Canada’s cultural makeup. The Canada that we know today was built on immigration and new Canadians.

• 500,000 annual immigration in Canada. One of the highest in the world.

• 20% of Canada’s total population in 2023 were newcomers with permanent residence.

In the US people not born in country accounts for 13.8% of the US population. The United States has more immigrants than any other country in the world, with over 40million people living in the US that were born in another country.

There is ample opportunity for brands to engage with all Americans. The impact on your category and/ or brands immediate growth potential is what may change your approach. Not everything can be painted with the same brush.

This evolving demographic presents both challenges and opportunities for brands looking to connect with a more diverse consumer base. It’s not one size fits all, the % of new market opportunity from people born outside of the country varies from country to country – from category to category. As with any marketing strategy and plan, it’s essential that you know what your starting point is. Where does your category sit with this important cohort, what is the health of your brand and then, only then can you uncover opportunity to drive growth.

Everything depends on your vantage point:

• at 10%, the percentage of ‘new market potential’ from people born outside of the US is on the lower side for frozen meals.

• Non-alcoholic beer rings the same tune – with only 9% new market potential.

These can still amount to large numbers, but the runway may be short unless you innovate, find a way-in that connects to their lifestyle or create new habits.

On the flip side, the percentage of “new” market potential from people born outside of Canada for hydration beverages is robust at 27%. If you haven’t communicated with people born outside of the country or uncovered where your brand stands…what are you waiting for?

• Live events provide strong market potential, with 22% of people born outside of Canada attending a concert. - Gyms show a similar opportunity at 22%.

With this opportunity, consider, what are you doing to welcome them into YOUR brand? What are you doing to connect and engage?

Moments That Define the Newcomer Experience

The key to understanding Newcomers is also to know that the PAST IS NOT FORGOTTEN while they EMBRACE THEIR FUTURE. A young family arrives in Canada and steps into a grocery store filled with unfamiliar products. Spotting a familiar logo like Coca-Cola brings an instant sense of comfort, bridging the gap between their past and present. Similarly, a university student’s first visit to Tim Hortons for a coffee and donut offers a warm introduction to Canadian culture.

These moments highlight the dual needs of newcomers: finding familiarity while embracing their new surroundings. For brands, this balance is a chance to go beyond products and become a meaningful part of their customers’ journey in building a new life.

Just because you’re not yet known, doesn’t mean you can’t be

Newcomers often rely on global brands during their transition to life in their new country because these brands offer familiarity in a sea of change. Companies like Amazon, McDonald’s, KitKat, and Coca-Cola succeed not just by meeting practical needs but by delivering consistency and a connection to a shared global culture. These brands provide emotional touchpoints that help make adjusting to a new country feel a little easier.

At the same time, local brands hold a distinct advantage in forging deeper connections. The top Canadian brand purchased by people born outside Canada in the past 12 months is Tim Hortons, with 64% of newcomers choosing it. Tim Hortons exemplifies how cultural relevance and everyday accessibility can create bonds that last.

This demonstrates that local and global appeal don’t have to compete—they can complement each other. For brands, striking this balance is essential to building trust and loyalty with a diverse audience.

What Brands Can Do

Engaging Canadian newcomers requires a thoughtful approach that is rooted in understanding of where you currently stand and where your opportunity lies to best connect:

• Understand your vantage point: What is the opportunity for your category, where does your brand stand

• Determine the purpose: Understand what purpose your category or brand can serve in their lives. This is the only way to determine how to connect moving forward.

• Prioritize inclusivity: As a starting point, prioritize inclusivity with the multicultural consumer. Showcasing imagery that acknowledges the diverse backgrounds.

• Drive familiarity: Focus on creating that connection. Use storytelling and relevant content to connect with newcomers on a deeper level and deliver why they should know your brand. Why do you exist and what’s the benefit to them?

• Drive trial: If possible, get your product or service in their hands or provide an experience that enables the consumer to get to know your brand. This starts to build trust but ensure that you deliver on expectation so that the trust is built and not lost.

Looking Forward: The New Consumer Opportunity

Newcomers are not just shaping the present; they’re paving the way for a more dynamic and diverse future. Their evolving preferences and values offer brands the chance to rethink strategies, innovate, and grow in meaningful ways.

Brands that embrace this opportunity with inclusivity and cultural awareness will position themselves as leaders in a changing marketplace. This isn’t just about adapting to a new consumer base—it’s about building enduring connections that drive connection and growth for your brand.