2024 was a big year for holiday spending, leaving individuals to wonder what 2025 will bring. Trends vary across generations, with the largest changes in spending habits being amongst Gen Z. In fact, 2025 holiday spending is down 23% for Gen Z shoppers when compared to 2024. On the other hand, Millennials, Gen X and Baby Boomers are spending roughly the same as they did in 2024. Let’s explore these holiday shopping trends below.
There are several potential explanations for Gen Z’s reduced spending. For starters, the typical US customer has seen a 12% decrease in their median total assets over the last 3 years. Gen Z in particular has seen a 5% decrease in value in its Market Pulse Index.
However, customers still want to make holiday purchases, and may do so using new methods. Trends to look out for include early shopping and Buy Now, Pay Later plans. Consumers are also priortizing personalized interactions from companies, which may impact where they shop. For business owners, tapping into personalized and data-driven marketing can go a long way in connecting with modern spenders.
Overall, spenders in 2025 are feeling financial constraints, but are still hoping to spend money on their loved ones during the holiday season. For lenders and retailers alike, understanding holiday shopping trends and consumer behavior is vital to making the most of the holiday shopping season.
Source: Equifax