The holiday season is typically one of steady rhythms and familiar patterns, but PwC’s Holiday Outlook 2025 suggests this year will feel different — more like jazz than a well-rehearsed melody. Consumers are adjusting their habits in the face of rising costs, tariffs, and shifting generational priorities, leading to the first notable dip in holiday spending since 2020.
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PwCThe holiday season is typically one of steady rhythms and familiar patterns, but PwC’s Holiday Outlook 2025 suggests this year will feel different — more like jazz than a well-rehearsed melody. Consumers are adjusting their habits in the face of rising costs, tariffs, and shifting generational priorities, leading to the first notable dip in holiday spending since 2020.
Spending Slows, Celebration Stays
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Average spend per person: $1,552, down 5% from 2024.
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Gift spending: Down 11% to $721.
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Travel & entertainment: Holding steady with a modest 1% increase.
Even with economic pressure, most consumers intend to preserve holiday traditions — hosting family gatherings, exchanging gifts, and traveling to see loved ones.
Generational Divide
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Gen Z: Cutting budgets by 23%, the sharpest pullback, reflecting job market struggles, life transitions, and limited savings. Nearly 40% of their spend will go toward self-gifting.
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Millennials: Spending nearly flat, down 1% year-over-year, balancing peak earning years with high expenses.
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Baby Boomers: Planning to spend 5% more, focusing heavily on family gifts.
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Households with children: Driving the highest spend at $2,349 — more than double those without kids.
Value Tops the List
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78% are seeking cheaper alternatives.
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65% expect deeper discounts post-holiday.
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Gift cards are rising in popularity, with 52% giving to friends and 47% to family.
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Technology is shaping shopping: 43% of Gen Z use social media to discover gift ideas, while AI tools are increasingly used for recommendations.
Flexible Shopping & Payments
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Shopping channels are now nearly balanced: 51% online, 53% in-store.
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Payment habits are shifting: credit card use has jumped to 52%, cash is up to 48%, and PayPal use has grown steadily.
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Fulfillment preferences: 70% prefer home delivery, while 39% will buy online and pick up in store.
The Five Days That Matter Most
Between Thanksgiving and Cyber Monday, nearly 40% of holiday gift spending will occur, with almost 80% of budgets spent by the end of Cyber Monday.
Food Over Fashion
Consumers are prioritizing food and shared experiences over discretionary goods like apparel.
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72% plan to gather for a home-cooked meal.
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Grocery spending is set to rise, driven by both inflation and tradition.
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Food and consumables are now among the top five gift categories, appealing across generations.
Travel Holds Steady
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44% of U.S. consumers plan to travel this holiday season.
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Top reason: Visiting family and friends (48%).
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Gen Z shows the biggest pullback, with only 55% planning to travel (down from 61% in 2024).
Key Takeaways for Retailers
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One-size-fits-all doesn’t work: Strategies must be tailored by generation, region, and family structure.
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Value-driven choices dominate: Price sensitivity is high, but consumers still want meaningful, personal, and sustainable options.
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Experiences matter: Food, travel, and self-care continue to capture discretionary dollars.
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Tech influences discovery: Social media and AI are rising as key shopping tools, particularly among younger shoppers.
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Timing is critical: Most budgets will be spent before December is halfway through.
Holiday 2025 spending is expected to dip for the first time in years, but the spirit of the season endures. Consumers are more deliberate, blending cost-conscious choices with the desire to celebrate and connect. Retailers that recognize these nuances — focusing on value, personalization, and timing — can build loyalty that extends beyond the holidays.
Source: PWC
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