Key Takeaways
- Holiday shoppers are projected to spend an average of $1,595 each, which is 10% less than in 2024.
- All income groups are cutting back — even those earning over $100,000.
- By demographic, Gen Z is seeing the biggest shift, with a 34% drop in spending.
- 89% of survey respondents will be “searching for deals,” while 77% will be “trading down on brands and retailers.”
Businesses beware: Holiday shoppers are set to spend 10% less this holiday season, compared to the same time period in 2024.
That’s according to a recent Deloitte survey, which found consumers will likely be spending an average of $1,595 each for the 2025 holidays.
Granted, a 10% reduction isn’t a huge drop. Still, it’s a sign that businesses can’t count on a holiday boom like they saw in the past two years, and should start preparing to weather a slower holiday season.
Fewer Retail Goods and Fewer Experiences
The survey, which polled 4,270 consumers across a range of income levels and age demographics, was just released by audit and consulting company Deloitte.
Consumers are buying fewer retail goods (which are down 14% year-over-year) but they’re also paying for fewer experiences (those are down 6% since last year).
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All income groups are decreasing their spending: Even those earning over $100,000 are planning to reduce retail purchases.
Gen Z Is Spending the Least
Most demographics are reducing shopping, too.
Broken down by demographic, Gen Z, Millennials, and Baby Boomers are all projected to spend less, although the amount of belt-tightening varies widely by generation. Boomers are spending 6% less than last year, Millennials are spending 13% less, while Gen Z is making the biggest shift with a 34% drop in spending.
This makes Gen Xers the only big generation that will likely spend more on presents and other holiday expenditures this year (3% more, to be precise).
This might just be a recession indicator, as the kids say. The younger generations have fewer funds saved in general, and are cutting down in spending when they can in order to set their savings on the right path.
How the Price Hike Stole Christmas?
Granted, other factors may be impacting US consumers as well. Tariff increases over the past year may be pushing prices higher.
In fact, the CEO of the National Tree Co. stated in a recent interview that tariffs have pushed them to hike prices by 10% — the exact percentage by which consumers are projected to decrease spending.
In fact, the survey’s press release notes that most consumers expect higher prices this season: “More than three-quarters (77%) of surveyed consumers expect higher prices on holiday items, and 57% expect the economy to weaken in 2026 — the least optimistic outlook since Deloitte started tracking economic sentiment in 1997.”
It’s not all bad news, however. Businesses looking for a way to maintain sales this holiday season should start issuing and advertising their best deals: 89% of survey respondents say that they’ll be “searching for deals,” while another 77% say they’ll be “trading down on brands and retailers,” which will also open up some markets to new customers hunting for bargins.
