Shopping: Why the "Buy American" Movement Is Fading for U.S. Consumers

Overview: Changing Attitudes Toward Domestic Products

A recent study reveals that U.S. consumers are becoming less interested in buying products made in the United States. The findings show a significant drop in the importance of "made-in-America" labels, with only 50% of consumers saying they would repurchase a product if they discovered it was made in the U.S., down from 60% in 2022. This shift comes despite ongoing efforts by the U.S. government to encourage domestic manufacturing through tariffs and trade policies.

Why This Trend Is Gaining Popularity: Economic Pressures and Changing Consumer Priorities

• Rising Prices and Affordability: The primary factor driving this shift is increasing concerns about price. As tariffs on foreign goods raise the cost of products made in the U.S., consumers are increasingly choosing affordability over loyalty to domestic manufacturing. This trend is particularly evident as consumers face rising costs of living and inflation.

• Value Over Loyalty: While country-of-origin still matters, its influence on purchasing decisions is declining. Consumers are prioritizing value and affordability more than ever, and for many, "made in the U.S.A." is now often associated with higher prices due to the costs of domestic production and tariffs on imported goods.

• Generational Differences: The survey indicates a generational divide in attitudes toward buying American-made products. While loyalty to U.S.-made goods has decreased across all age groups, younger consumers, particularly those under 35, are still somewhat more inclined to support domestic production, possibly due to sustainability concerns and interest in job creation.

Detailed Findings: Declining Loyalty Across Origins

• Overall Decline in Loyalty: Loyalty to products made in other countries also decreased significantly, with repurchase rates falling for items made in Japan (from 21% to 16%), the U.K. (from 21% to 16%), Mexico (from 17% to 11%), and China (from 12% to 9%).

• Price Sensitivity in Older Consumers: Among consumers aged 55 and older, loyalty to domestic products plummeted from 69% to 47%, the largest drop among age groups. This suggests that older generations, who were once more likely to prioritize "buy American," are now more influenced by price concerns.

• Sustainability and Job Creation Among Younger Consumers: For those under 35, loyalty to American-made products slightly increased, rising from 49% to 50%. This could indicate a growing interest in supporting domestic production tied to sustainability and job creation.

Key Success Factors of the Trend: What’s Driving the Change

• Economic Pressures and Inflation: As consumers grapple with inflation, price remains a dominant factor in purchasing decisions. Domestic products, often more expensive due to higher production costs, are becoming less appealing to price-conscious consumers.

• Sustainability and Job Creation: Younger consumers’ growing interest in sustainability and job creation may offer opportunities for brands that can connect domestic production to environmental and economic benefits.

• Globalization and Access to Alternatives: As global supply chains expand, consumers have more access to affordable foreign-made goods, making "made in America" less of a determining factor when making purchasing decisions.

Key Takeaway: Price Trumps Loyalty to Domestic Products

The decline in interest in the "buy American" movement reflects a broader trend where price and value are prioritized over loyalty to domestic manufacturing. While country-of-origin labels still matter, affordability is becoming the key driver of purchasing behavior for many consumers.

Main Trend: Shifting Priorities from Nationalism to Value and Affordability

The main trend is a shift from a strong preference for domestic products to a focus on value and affordability. As price sensitivity increases, consumers are more willing to buy imported goods, even if it means sacrificing loyalty to "made in America" labels.

Description of the Trend: A Decline in National Loyalty for Price and Value

The "buy American" movement is fading as consumers increasingly prioritize value and affordability over the origin of products. This shift is driven by rising production costs, tariffs, and inflation, prompting many consumers to opt for cheaper alternatives regardless of where they are made.

Key Characteristics of the Trend

• Price Sensitivity: Rising costs are pushing consumers to seek the most affordable options, regardless of where the product is manufactured.

• Generational Shifts: Older generations are moving away from prioritizing U.S. products, while younger consumers are still somewhat inclined to support domestic production, particularly for sustainability reasons.

• Global Alternatives: The increasing availability of affordable foreign-made goods is diminishing the influence of domestic production preferences.

Market and Cultural Signals Supporting the Trend

• Inflation and Economic Pressures: As economic uncertainty and inflation rise, consumers are looking for ways to save, which often leads them to choose less expensive foreign-made goods.

• Sustainability Movements: The growing interest in sustainability may help maintain some level of support for domestic manufacturing, especially among younger consumers who see it as tied to environmental responsibility.

What Is Consumer Motivation?

• Affordability Over National Loyalty: As consumers face economic challenges, the desire to save money has become a more significant motivator than supporting domestic manufacturing.

• Value for Money: Consumers are increasingly seeking the best value for their money, whether the product is made domestically or abroad.

What Is Motivation Beyond the Trend?

• Sustainability and Ethical Consumption: Consumers, particularly younger ones, are increasingly focused on the broader impacts of their purchases, including sustainability and job creation, which may drive interest in supporting domestic manufacturing tied to these values.

Descriptions of Consumers: Who Are They? What Drives Them?

• Consumer Summary:U.S. consumers are increasingly prioritizing price and value over loyalty to American-made products. While older generations are moving away from supporting domestic production, younger consumers show some interest in products made in the U.S. if they align with sustainability goals.

• Demographics and Lifestyles:

  • Who Are They: A broad cross-section of consumers, though younger generations (under 35) are more likely to show some interest in domestic products if linked to sustainability.

  • What is Their Age: Consumers across all age groups, with a notable generational divide.

  • What is Their Gender: Both male and female consumers, with no significant gender differences in the trend.

  • What is Their Income: All income levels, with price-sensitive consumers driving the trend.

  • Lifestyle: Consumers are increasingly budget-conscious and value-oriented, prioritizing affordability over national loyalty when shopping.

How the Trend Is Changing Consumer Behavior: A Shift Toward Price Over Nationalism

• Increased Price Sensitivity: As economic pressures mount, consumers are focusing more on getting the best value for their money rather than buying based on a product's country of origin.

• Globalization and Access to Affordable Alternatives: The ability to purchase goods from around the world at competitive prices has made consumers more willing to explore options beyond domestic products.

Implications Across the Ecosystem

• For Consumers: Consumers will continue to seek out the best prices, often opting for imported goods if they are more affordable, even if that means sacrificing loyalty to U.S.-made products.

• For Brands and CPGs: Brands will need to balance the demand for affordable products with the growing interest in sustainability, especially among younger consumers.

• For Retailers: Retailers should focus on offering products that provide the best value and consider integrating sustainability messaging to appeal to younger, eco-conscious shoppers.

Strategic Forecast: What's Next for the "Buy American" Movement?

• Increased Focus on Sustainability: Brands that can tie domestic manufacturing to sustainability and job creation will likely fare better, especially among younger consumers.

• Continued Price Competition: The trend toward prioritizing affordability will continue, forcing companies to compete on price and value more than on origin.

Areas of Innovation (Implied by Trend)

• Sustainable Domestic Manufacturing: Companies may innovate in ways that make domestic manufacturing more affordable and eco-friendly to appeal to younger, value-driven consumers.

• Transparent Pricing Models: Retailers could implement pricing models that highlight the cost-effectiveness of domestically produced goods, showcasing the value proposition over imported products.

• Global Sourcing Strategies: Brands will need to refine their global sourcing strategies to ensure they can offer competitive prices without compromising on quality or sustainability.

Summary of Trends:

• Core Consumer Trend: Value Over National Loyalty: Consumers are increasingly focused on affordability and value, leading to a decline in loyalty to American-made products.

• Core Social Trend: Price Sensitivity and Globalization: Economic pressures and globalization are shaping consumer behavior, making price a more critical factor than country of origin.

• Core Strategy to Follow Trend: Compete on Price and Value: Brands need to focus on providing affordable products, whether domestic or imported, and communicate the value to consumers.

• Core Industry Trend: The Decline of the "Buy American" Movement: As price sensitivity grows, loyalty to domestic manufacturing is declining, leading to a shift in the purchasing behaviors of U.S. consumers.

• Core Consumer Motivation: Affordability and Value: Consumers are motivated by the need to save money, choosing products that offer the best value regardless of where they are made.

Final Thought: A Shift Toward Practicality in Consumer Behavior

The fading of the "buy American" movement reflects the reality of a more price-conscious and value-driven consumer landscape. As consumers prioritize affordability over national origin, brands must adapt by offering competitively priced products that meet evolving expectations for value, quality, and sustainability.

Source: https://www.axios.com/2025/08/11/buy-american-products-study