Despite larger Christmas budgets, many Australians are still having to look for bargains to afford the holiday season, finds new research from Pureprofile.

78% of surveyed Australians are adjusting their Christmas spending to stretch their budgets (up from 67% last year), with 38% intending to spend less on gifts overall (versus 41% in 2024) and 18% focusing gift-giving on children (similar to 20% in 2024).

Over half (55%) intend to take advantage of Black Friday and Cyber Monday sales events, a growing trend in recent years (up from 45% in 2024). For retailers looking to capture consumers, percentage off discounts are the most popular with Australians (48%), followed by free shipping (15%). Australians will also look for brick and mortar bargains, as they increasingly prefer to shop in-store (61% vs 59% in 2024) over online (38% vs 41% in 2024).

Now in its seventh year, Pureprofile’s Christmas report is a global report based on the insights of over 4600 panel members from Australia, New Zealand, the UK, the US and Singapore.

Among various nations, Australians show stronger intentions to buy gifts than receive them, with those planning to stretch budgets adopting a value-driven and cautious mindset. On average, Australians expect to spend $491 on gifts ($23 more than 2024) and $506 on food and drinks ($100 more than 2024). The majority will spend between $301-$1,000 on gifts, and notably, 15% plan to spend over $1,000, a figure skewed towards those aged 45-54 (22%).

This year, Australians are also expected to shift their methods of payment, with debit card use climbing to 56% (up from 50% last year), while credit card use has dropped to 40% (down from 47% last year).

“Australians are heading into Christmas spending with a blend of practicality and cautious optimism,” says Pureprofile CEO Martin Filz.

“A shift from credit card to debit card use signals a strong intent to celebrate within tighter financial control, and more creativity in utilising budgets underscores our resolve in keeping with traditions albeit challenging financial circumstances.”

Gifts  

Gift cards (43% vs 46% in 2024) and money (36% vs 41% in 2024) remain the most desired gifts among Australians, though slightly less so than last year.

Growing in popularity are clothing and shoes (41%), up from 33% last year and up 24% points among 18-24-year-olds. There’s a big rise in high value gifts such as technology (28%), up from 22% in 2024 and 17% in 2023, and jewellery (26%), up from 23% in 2024 and 19% in 2023.

Preference for skincare and beauty products (29%), in particular, are becoming trendier among 25-34-year-olds, up from 13% in 2024.

Feasting 

In line with a value-driven mindset in budgeting this year, three in five respondents plan to spend under $500 on festive food and drink this festive season, while 21% are opting for budget-friendly food and drink options to save on cost (versus 27% in 2024).

A third of surveyed Australians, up from 30% last year, also hope to receive food, confectionery and drinks (including alcohol) as a gift this festive season.