The Christmas spending in the United States will experience its first significant fall from the pandemic in 2025. This is anticipated by the “Holiday Outlook 2025” report, prepared by PWC, which reveals a 5% contraction in the average budget for consumer compared to the previous year, placing it at $ 1,552. This figure includes gifts, trips and entertainment, and highlights a season marked by containment, emotional planning and a strong focus on value.
Households with children under 18 will be the ones who drive a good part of the Christmas spending: they plan to pay an average of $ 2,349, more than double the households without children, who stay at $ 1,089. This difference responds to both the need to cover more gift profiles and to the desire to keep family traditions alive.
And, despite moderation, the Christmas spirit is maintained. More than 70% of consumers plan to maintain their traditions, including trips and family gatherings, although adapting the expense to the economic situation. In the words of the report, “The celebration persists, but consumption becomes more deliberate.”
72%will celebrate with a homemade meal, driven for economic reasons (39%) or cultural traditions (56%)
Faced with spending adjustment, most consumers keep their plans to meet and cook at home. 72%will celebrate with a homemade meal, driven for economic reasons (39%), cultural traditions (56%) or the simple pleasure of cooking (44%). Also in the gastronomic field, generational differences are reflected: GEN Z and millennials bet on functional and healthy products, while boomers opt for traditional indulgences.
The Z gene changes the compass of the season
Among the most prominent findings of the study is the change in behavior between generation Z (from 17 to 28 years), which will cut its Christmas spending by 23%, in contrast to the 37% growth recorded the previous year. This generation, marked by precarious access to the labor market and the increase in fixed costs, prioritizes sustainability and self -care: 63% will bet on second -hand or recycled products, and one in three will reduce their consumption for environmental reasons.
The report also indicates that 39% of the GEN z budget will be allocated to “self-regals”, while millennials and baby boomers guide their purchases mostly to relatives (62% and 67%, respectively).
The differences between generations extend to all fronts: generation Z reduces spending and focuses on sustainability and self -care; Millennials balance budget and convenience with the use of AI and digital channels; and Baby Boomers prioritize human contact, traditional consumption and spending in third parties. They also vary in their payment methods – with the boomers leaning on the phone and effective, and the gene z per digital and BNPL – and in food preferences: health and functionality for the youngest against classical indulgence for the elderly.
The price matters, but it is not everything
The decrease in spending is especially concentrated in gifts, which fall by 11% and stand at $ 721 on average. However, products such as food gain ground as a gift option: “consumables” appear in the top 5 of family categories (26%), friends (28%) and oneself (23%). The report suggests that these products connect with three key factors this year: price, utility and emotional closeness.
The gift cards are consolidated: 52% plan to give them to friends and 47% to relatives
On the other hand, gift cards are consolidated as a practical and emotional option: 52% plan to give them to friends and 47% to relatives.
The delay of Black Friday and Cyber Monday to the period between November 27 and December 1 has further compressed a demanding season. PWC estimates that about 80% of gift spending will be completed before Cyber Monday finishes, and 40% will be concentrated exclusively on those five key days.
Technology, AI and omnichannel as allies
In a context marked by efficiency, the report highlights the growing role of technology. Generation Z uses social networks as well as search engines (43%) to discover gift ideas, and 15% of them (and millennials) plan to use artificial intelligence to seek inspiration. In addition, 76% of millennials will use AI for travel recommendations.
As for purchase channels, almost total parity is reached: 51% will buy on online marketplaces and 53% in physical stores. Delivery options are also diversified: 70% prefer to receive at home, while 39% will choose to collect in store. Payment in cash and prepaid cards increase their popularity, while the use of BNPL platforms stabilizes around 9%.
In a season marked by inflation, new rates and price sensitivity, the “Holiday Outlook 2025” invites brands to leave generic approaches behind. Precise segmentation, emotional connection and flexibility will be key to responding to the different realities of each consumer.“The Christmas season is no longer a common experience, but a mosaic of different profiles”concludes the report.
More info.: Holiday outlook 2025
