Australians are budgeting $80 more for Christmas gifts this year and $100 more for food and drink during the festive season, according to new Pureprofile research.
Total gift budgets for 2024 average $468 (up from $388 in 2023), with food and drink budgets sitting at $406 (up from $306 in 2023).
Now in its sixth year, Pureprofile’s 2024 ‘Christmas Report’ is a global report based on the insights of over 4300 panel members from Australia, New Zealand, the UK, the US and Singapore.
Despite higher spending intentions, many Australians will still be on the lookout for bargains, with 67% of respondents looking to save on Christmas expenses this year. Almost half of the Australians surveyed (45%) also expect to take advantage of Black Friday and Cyber Monday deals. Other money-saving tactics include buying fewer presents (41%) and cheaper food alternatives (27%).
There is high positivity towards the festive season in Australia, with 60% of respondents feeling emotionally positive as inflationary pressure eases. This is a marked increase from previous years (54% in 2023, 57% in 2022 and 56% in 2021).
“This is the first time in five years that we’ve seen a loosening of the Australian purse strings and a noticeable uplift in holiday spirit,” says Pureprofile CEO Martin Filz. “This shift is remarkable and suggests we may be emerging from the long shadow of cost-of-living concerns.
“However, a cautious sentiment persists, with shoppers actively seeking savings and bargains. Retailers should take note that Australians are inclined to shop in-store, making it essential to offer more substantial in-store discounts to drive foot traffic.”
Gifting gets practical
Money and gift cards dominated the list of gifts people wished for across all countries, except the UK where there was a stronger desire to receive clothes, shoes and food.
For Australians, practical gifts that may help relieve the household budget were prioritised with gift cards (46% vs 44% in 2023) and money (41% vs 36% in 2023) topping the wish list. Other desired gifts include clothes or shoes (33% vs 28% in 2023), food or drinks (30% vs 27% in 2023) and skincare and cosmetics (28% vs 22% in 2023).
Festive preparations
Globally, most people intend to shop between November and early December.
Over two-thirds (70%) of surveyed Australians plan to start in November or earlier (up from 67% in 2023), while few (9%) plan to leave it until the middle of December.
Australian respondents are also embracing the in-store experience this year (59%), but a large portion still prefer online shopping (41%), with very few (7%) using AI to help them with Christmas plans or gifts.
Most surveyed Australians are price-conscious this year (80%), ranking it higher than quality (68%) with regard to Christmas purchasing decisions. Factors such as brand reputation (26%) and recommendations or reviews (20%) also had less impact. Shoppers report that retailers offering a promotion with a percentage off (50%) held significantly more appeal than free shipping (17%) or buy one get one free offers (12%).