Holiday Spending in 2024: Navigating the Cost-of-Living Crisis
How the Cost-of-Living Crisis is Shaping Consumer Behaviour
The holiday season has always been a time of giving and celebration. However, in a recent study we conducted between January and February 2025 amongst n=589 Australians aged 18+, consumers tightened their wallets over the 2024 holiday period, becoming more intentional with their purchases and prioritising financial stability over festive splurging.
Consumers Are Spending Less
More than one in three consumers (38.7%) reported spending less on holiday gifts this year, while 36.3% maintained their usual budget and only 24.9% increased spending. Younger consumers (18-30) cut back the most, feeling the effects of rising living costs, financial insecurity, and job market concerns.
This shift isn’t just about saving - it reflects growing financial pressures. Inflation, debt, and the cost of necessities weighing on households, prompting many to rethink their approach to holiday gifting.
Figure 1 - Holiday spending in 2024 relative to previous years - total sample
| % of Australians who spent... | Before 2020 | 2022 | 2023 |
| Less $ | 36% | 38% | 39% |
| The same $ | 32% | 35% | 36% |
| More $ | 32% | 28% | 25% |
Figure 2 - Holiday spending in 2024 relative to previous years - A18-30 years
| % of Australians who spent... | Before 2020 | 2022 | 2023 |
| Less $ | 30% | 32% | 34% |
| The same $ | 16% | 20% | 24% |
| More $ | 54% | 49% | 42%⬇️ |
The Emotional Toll of Financial Stress
Beyond spending habits, financial strain took a toll on mental well-being. When consumers were asked about their daily mood, many spontaneously mentioned financial insecurity. Amongst the comments that mentioned financial insecurity, key themes included:
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Inflation concerns (27.9%) remained prominent but declined from their peak in 2022.
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Financial insecurity (19.2%) was a persistent worry about the future.
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Debt and bill stress (12%) rose, reflecting heavier financial obligations.
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Affording basic necessities (11.7%) remained a major concern.
Women were disproportionately affected, expressing higher levels of stress related to debt, household expenses, healthcare costs, and holiday spending. This suggests they are carrying much of the mental load of the cost-of-living crisis.
How Holiday Spending Changed
Consumers adjusted their holiday spending in three key ways:
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Prioritising Value: Shoppers made more thoughtful, practical, and cost-effective gift choices.
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Stabilising Budgets: More people kept spending steady rather than indulging in extravagant purchases.
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Growing Financial Stress: Financial strain was an ongoing burden, with 10% of consumers spontaneously mentioning it as a key concern when reflecting on their daily mood.
What This Means for Brands and Retailers
These shifting behaviours present challenges and opportunities for businesses. Brands that acknowledge financial concerns and offer budget-friendly, high-value options will resonate with consumers. Particularly with the looming impact of tariffs, transparent pricing, thoughtful promotions, and messaging that aligns with shoppers’ realities will be key to engagement in 2025.
The holiday season remains a time for giving, but consumers are redefining what that means. Thoughtfulness, financial mindfulness, and stability are shaping this year’s shopping trends, marking a clear shift in how people celebrate.
If you’d like to learn more about the above research, or have any other research enquiries, please feel free to get in touch!
