Brands eye festive bonanza as shoppers plot £600 spend

They say Christmas comes earlier and earlier but those marketers enjoying a well-earned summer break will be heartened by the fact that this year the average British consumer expects to spend almost £600 on core festive-related products and activity, including food, gifts, decorations, socialising and travelling.

That is according to the IPA’s “2024 Christmas Consumer” report, carried out by Opinium among 2,000 UK adults, which shows expected spend is highest among 35-44s (£723.40) and over 75s (£607.60) and lowest among 65-74s (£486.60) and 55-64s (£489.60). Parents also expect to spend considerably more (£654.40) than those without children (£397.90).

The majority (55%) of UK adults expect to spend most of their Christmas 2024 budget on gifts for others, followed by food and drink (18%), travel (6%), gifts for themselves (4%), socialising (4%) and decorations (2%). The remaining percentage of Brits – around 12% – are not sure what they will spend the most money on during Christmas 2024.

When it comes to timings, almost a third (31%) of all consumers expect to still be shopping during December, while 43% plan to have finished their shopping before Black Friday.

Parents are more likely to do their shopping early (18% in September and October and 20% in the first half of November 20%) than those without kids (13% in September and October and 14% in early November).

Meanwhile, younger generations are most likely to take advantage of the Black Friday sales with 82% of 18-24s and 75% of 25-34s planning to spend at least a quarter of their budget during this time. Some 85% of over 75s and 73% of 65-74s do not intend to spend any of their budget during the period.

Young people are also the most open to buying gifts from new or emerging brands, with almost two-thirds (61%) of 25-34s and more than half of 18-24s (54%) and 35-44s (56%) considering this.

And when it comes to gift ideas, 56% of 18-24s and 25-34s hope to receive practical or essential gifts rather than luxury items this Christmas. This is lowest among over 75s (28%) and 55-64s (32%).

IPA insight manager Eric Kreis said: “We know that Christmas is a critical time for brands in all categories. While consumers’ Christmas budgets appear healthy, we imagine that with the cost-of-living crisis continuing to grip, they will want to make sure every penny counts.

“This data therefore provides helpful insights into the habits, feelings and plans of UK adults around Christmas 2024 to help brands and agencies appeal best to their consumers.”