Australians are budgeting $80 more for Christmas gifts this year and $100 more for food and drink during the festive season, according to new research conducted by global data and insights company Pureprofile Limited.
Total gift budgets for 2024 averaged $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 4,300 panel members from Australia, New Zealand, the UK, the USA and Singapore.
Despite higher spending intentions, many Australians will still be on the lookout for bargains, with 67 per cent looking to save on Christmas expenses this year. Almost half of Australians (45 per cent) also expect to take advantage of Black Friday and Cyber Monday deals. Other money-saving tactics include buying fewer presents (41 per cent) and cheaper food alternatives (27 per cent).
There is high positivity towards the festive season in Australia, with 60 per cent feeling emotionally positive as inflationary pressure eases. This is a marked increase from previous years (54 per cent in 2023, 57 per cent in 2022 and 56 per cent 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. 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,” said Martin Filz, CEO of Pureprofile.
“Interestingly, despite the prevalence of AI, only 7 per cent of Australians plan to use it for holiday planning this year. It seems that some aspects of Christmas cheer remain untouched by technology, proving that perhaps not everything can be enhanced by ChatGPT — except maybe tackling that endless list of Christmas cards!”
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 per cent vs 44 per cent in 2023) and money (41 per cent vs 36 per cent in 2023) topping the wishlist. Other desired gifts include clothes or shoes (33 per cent vs 28 per cent in 2023), food or drinks (30 per cent vs 27 per cent in 2023) and skincare and cosmetics (28 per cent vs 22 per cent in 2023).
Festive preparations
Globally, most people intend to shop between November and early December. Those in the UK are more likely than other countries to start shopping in September or October. Over two-thirds (70 per cent) of Aussie shoppers plan to start in November or earlier (up from 67 per cent in 2023), while few (9 per cent) plan to leave it until the middle of December.
Aussies are also embracing the in-store experience this year (59 per cent), but a large portion still prefer online shopping (41 per cent), with very few (7 per cent) using AI to help them with Christmas plans or gifts.
Most Australians are price-conscious this year (80 per cent), ranking it higher than quality (68 per cent) with regard to Christmas purchasing decisions. Factors such as brand reputation (26 per cent) and recommendations or reviews (20 per cent) also had less impact. Shoppers reported that retailers offering a promotion with a percentage off (50 per cent) held significantly more appeal than free shipping (17 per cent) or buy one get one free offers (12 per cent).
All work and no sleigh
One in five working Australians (20 per cent) anticipate rising costs will shrink their year’s workplace Christmas party. Around half of working Australians expect their company Christmas party to be similar to last year, but one in four (25 per cent) do not expect to be treated to a workplace celebration at all.
Most working Australians (73 per cent) are looking forward to their workplaces closing over the Christmas period and enjoying their hard-earned leave. However one in ten (9 per cent) do not appreciate being compelled to take their annual leave at Christmas, possibly because of limited and expensive travel choices over the peak period.
Time for turkey and travel
Globally, there is a consensus that the ideal Christmas is one spent enjoying a meal with family, preferably at home. Those in Australia (55 per cent) and New Zealand (55 per cent) are most likely to agree with this sentiment. Those in Singapore (16 per cent) and America (14 per cent) were the most likely to prefer to spend the day alone.
Other popular Australian Christmas choices were a wilderness cabin in the snow (12 per cent), a hot day at the beach (11 per cent) or celebrations at a fancy restaurant (11 per cent).
Australians are looking to travel again for Christmas 2024, with 41 per cent expecting to travel this year. However, only 8 per cent plan to travel internationally.
