Heading into the holiday selling season, half of Thanksgiving food shoppers and holiday gift-givers say inflation will impact their spending plans, according to “Holiday Spending 2023: Consumers Share Food- and Gift-Shopping Plans”, based on an Oct. 23, 2023, survey of more than 1,100 U.S. adults aged 21 and over.
Fifty percent of surveyed adults say inflation will alter their Thanksgiving food spending. Among that group, nearly six in 10 say they anticipate spending more money compared to last year, with 28% anticipating spending more to buy the same amount of food and 13% planning to spend more on less food. Only about two in 10 of these shoppers plan to spend more and buy more food.
One-fourth of those who say inflation has affected their Thanksgiving food budgets expect to spend the same amount as last year but buy less food. Sixteen percent plan to spend less and buy less.
Big picture, one-third of respondents (34%) expect to spend more on Thanksgiving food this year than they did in 2022, including 14% who say they’ll spend “much more.” About half anticipate spending the same amount on their Thanksgiving dinners and one in 10 say they’ll spend less compared to last year.
For December holidays, four in 10 of respondents expect to spend more on food for Christmas, Hannukah and/or New Year’s Eve celebrations, with 16 percent anticipating spending “much more.”
“Even in tougher economic times, when customers are struggling to make ends meet, a preponderance of shoppers will stretch their budgets to make holiday feasts enjoyable and memorable,” says Gil Phipps, senior vice president, global customer solutions for Advantage Solutions. “These are the meals that bring us together, that will provide cherished memories for years to come. Credit cards may carry a heavier load or corners may be cut elsewhere, but most shoppers are unwilling to curb these celebratory feasts.”
Holiday Gift-Giving: Spending Adjustments and Shifting Priorities
Nearly half (47%) of holiday gift buyers say inflation is altering their spending plans this year. Among that group, 63% expect to buy fewer gifts this year compared to last year, including:
- 13% who plan to spend more money but buy fewer presents
- 26% who expect to spend the same but buy fewer gifts
- 24% who will spend less and buy fewer gifts
Twenty percent say they’ll spend more on the same number of gifts, and 13% will spend more to buy more gifts. Just 3% say inflation will prevent them from buying gifts at all.
Overall, 36% of survey respondents plan to spend more on gifts this year, while 45% plan to spend the same and 14% will spend less. (4% say they don’t typically buy or spend money on gifts.)
“Shoppers are expecting inflation to meaningfully impact their gift purchases this holiday season,” Phipps says. “Many say they will shop around and even look to alternative channels to find value. This will add additional pressure to already busy times. Shoppers will feel the dual stresses of stretched budgets and, with more time spent searching for bargains, less time to savor the season.”
Additional Highlights From the Holiday Survey
The report also looks at when gift buyers begin their holiday shopping and what types of gifts they’re buying.
These findings provide timely shopper insights into how economic pressure is shaping holiday behaviors — from gifting decisions to channel choices and store formats.
