2025 is shaping up to be a very chaotic and scary year for the stock market. Tariffs are threatening economies and geopolitical conflicts are escalating. Naturally, this is bad news for Canadian stocks. But thankfully, there is a group of stocks that investors can turn to for relief: consumer defensive stocks.
Without further ado, here are two such stocks that should help Canadian portfolios weather the storm.
Source: Getty Images
Jamieson Wellness
The defensive wellness industry is booming. As a leading brand in the alternative healthcare industry, Jamieson Wellness (TSX: JWEL) is also booming. The momentum that Jamieson continues to experience has been far-reaching and greatly impactful in its financial results.
For example, Jamieson’s revenue has increased 82% in the last five years. This equates to a compound annual growth rate (CAGR) of 13%. Also, in 2024, the company achieved record cash flow generation and earnings. This growth was driven by a sustained consumer interest in health products and innovative natural solutions — not just in North America but globally as well. For example, China saw an 80% growth rate in revenue from this market.
The global health and wellness secular trend is here to stay, and the momentum is, in fact, continuing strong. Yet, as you can see from the graph below, the stock has gotten hit in 2025 and is down 19% in three short months.
Importantly, the company has stated that potential tariffs are not likely to have a significant impact on Jamieson. This is due to the fact that the products that are sold in Canada are mostly manufactured in Canada. Likewise, the products sold in the U.S. are mostly manufactured in the U.S.
For 2025, the company is expected to generate earnings per share (EPS) of $1.90. That’s 18% higher than the prior year, and it equates to a price-to-earnings ratio of a mere 15 times.
Loblaw Companies
As one of the most, if not the most recognizable, defensive consumer stocks, Loblaw Companies (TSX: L) is well set up. In this uncertain world, one thing that cannot be sacrificed is food and drugs. This is where Loblaw comes in.
Loblaw is Canada’s largest food retailer and leading pharmacy outlet, with more than 2,400 stores across Canada and a wide range of banners and product lines that cater to different tastes and budgets. This is what allows Loblaw to continue to thrive under any economic scenario.
For example, the pain that consumers have been feeling lately has been evident in Loblaw’s results. But it shows up in the distribution of revenue across the company’s banners, not in an overall revenue hit. In 2024, consumers favoured discount offerings. This showed up as double-digit sales growth in Loblaw’s discount banners like No Frills and Maxi.
In 2024, Loblaw reported $61 billion in revenue. During the last five years, Loblaw’s stock price has soared almost 180% to over $190 per share. Today, the stock trades at an attractive 18 times next year’s expected earnings.
The bottom line
While tariffs will negatively affect even the defensive consumer stocks I discussed in this article, spending in this category is more of a necessity than in other non-defensive consumer categories. This leaves them well-positioned in this economic environment.
