Festive spending forecast to increase and reach £24.6 billion in the UK this year, PwC research shows
According to PwC research, UK consumers are set to spend £24.6 billion on presents and celebrations over the Christmas period this year, a 3.5% increase from the £23.7 billion spent in 2024. Average spending per adult is forecast to rise from £449 to £461.
This year, 15% of shoppers say they will increase their spending compared with last Christmas, with an almost equal number (14%) saying they will spend less. This is a slightly more pessimistic outlook than this time last year, when 20% of consumers said they would spend more on festivities and 16% spend less.
Younger shoppers are set to splash out more on the festive period this year than other age groups, with 32% of 18 to 24-year-olds saying they will stump up more than last year and, as in previous years, they are forecast to be the biggest spenders per head with an estimated £541. Those aged 25 to 34 follow and will have the second highest estimated spend per head of £476, with 21% saying they will increase their festive spend.
In contrast, older shoppers expect to spend less this year, with 18% of 35 to 44-year-olds and 14% of 45 to 54-year-olds saying they will keep a closer eye on the purse strings this year. The 45 to 54-year-olds are also the group forecast to spend the least per head, at £436.
In contrast to Black Friday, women are forecast to hand over more than men, with a £471 outlay per head forecast. Men are projected to spend £452 per head.
Of those consumers who said they are planning to spend less, the cost of living was cited as the main reason. 36% have less money to spend, with 34% saying their personal finances have been negatively affected over the past year. 24% are less confident about their finances.
Although the survey was undertaken three weeks before the budget, only 15% of those consumers cutting back mentioned concerns over what would be announced by the Treasury as a reason to spend less.
This year, the highest proportion of consumers since the pandemic (67%) have said they will be hosting or visiting extended family this year, and the fewest (21%) say they will be staying at home with immediate family.
While overall spending on Christmas is predicted to see a slight uplift, consumers’ net spending intentions (those who say they will spend more vs those who say they will spend less) are broadly in line with last year. However, there are winners and losers amongst the categories shoppers say they will be buying.
The biggest winners over Christmas are expected to include:
Food and drink will be the top spending priority again, with 27% of consumers planning to spend more compared to last year. Both food and drink (+13) and Christmas dinner (+11) categories see higher net spending intention than last year due to a combination of grocery price inflation, more family gatherings, and trading up to extra special products.
18% will spend more on health and beauty products, making it the third most prioritised category, overtaking both adult and children’s clothing and electricals and technology. Health and beauty has become particularly important for younger shoppers.
Fashion is the fourth highest priority for consumer spend this Christmas, with 17% planning to spend more on adult clothing this year.
Most consumers plan to do their spending for the festive season online with 55% of purchases being carried out online for home delivery. Together with Click and Collect (9%), that leaves only a third of shopping taking place in physical stores (36%). The combined 64% of Christmas presents bought online is an increase on the last two years, and the highest proportion spent online since the end of the pandemic.
Jacqueline Windsor, Head of Retail at PwC UK, says: “Retailers, and particularly supermarkets, will be encouraged to see consumer net spending intentions for food and drink in positive territory. Post-budget, we should see clarity on personal finances easing some of the caution we have seen this autumn, which has contributed to a slow start to the critical Golden Quarter for some retailers.”
“For retailers, the challenge is to balance competing consumer priorities. Those who succeed will need to offer a mix of practical and joyful products at different price points to meet the needs of shoppers managing their wallets and celebrating special occasions. With almost two-thirds of festive shopping expected to take place online this year, retailers will also need to bridge digital and offline channels across the customer journey.”
““The good news is that despite the slow start to the festive shopping period, we know that the majority of Christmas shopping is done in December, and that consumers always spend more than they expect on festive presents and celebrations. So, it’s still all to play for the retail and hospitality sectors as we come into the final weeks before Christmas.”
2025 RTIH INNOVATION AWARDS
Online retail was a key focus area at the 2025 RTIH Innovation Awards.
We received a record number of entries and many fantastic examples of the continued resilience and dynamism of the retail space during hugely challenging times.
For a full rundown of all of the shortlisted entries, click here.
Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC in Central London on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.
In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”
“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”
He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”
Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.
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