Younger Americans are steering Santa’s sleigh when it comes to holiday spending this year. Insights from Ipsos reveal that 18- to 34-year-olds are planning to spend more on gifts than their older counterparts.
The holidays can be stressful—scrambling for last-minute deals, facing crowded stores, or discovering that the perfect gift is sold out. But younger shoppers seem to be ahead of the game. They’re spending more, starting earlier, and showing confidence in their shopping choices.
At the same time, they face challenges, like keeping up with trendy gifts, balancing convenience with supporting local businesses, and shopping for the hard-to-please people on their lists.
What’s behind this surge in spending, and how are younger Americans navigating the season differently? Let’s explore how they’re sleighing the sales this year.
53% of 18- to 34-year-olds say they will spend more on holiday gifts this year compared to last year
Younger Generations Are Outspending Older Groups
Younger shoppers are spending more this holiday season. More than half of 18- to 34-year-olds (53%) say they will spend more on holiday gifts this year compared to last. But older groups aren’t feeling the same way. Less than a third (29%) of those aged 35 to 54, and less than one in five (18%) of those over 55, plan to spend more.
Younger Americans have always been enthusiastic about holiday shopping. Last year, Millennials and Gen X were a bit more willing to splurge, but their excitement has cooled off a bit (from 39% down to 29%).
Early Birds: Younger Shoppers Started Sooner
Younger shoppers aren’t just spending more. In fact, they also got a head start.
Have you ever waited too long and found that popular items are sold out, shipping delays make it impossible to deliver gifts on time, or the stores are just too crowded to even consider stepping foot into?
Putting holiday shopping off until the last minute can be frustrating and stressful!
Younger shoppers are avoided that by starting early. Many had already begun their holiday shopping by late October, looking for early deals, reducing stress, and snagging those gifts before they’re out of stock.
Why Younger Americans Are Spending More
So why are younger shoppers spending more?
Is it the excitement of giving?
Or maybe they’re just more in tune with what’s hot right now.
One big reason younger shoppers are spending more is that they know where to look. When asked, about one-third (33%) of those aged 18 to 34 strongly agreed that they know exactly where they’ll shop this holiday season. Compare that to older shoppers: only 22% of those aged 35 to 54, and just 12% of those over 55, felt the same confidence.
Think about it.
When you know where to go, everything feels easier. You save time, you grab deals before they’re gone, and it’s just less overwhelming. Younger shoppers are ready and focused, while many older shoppers are still figuring it out.
Another reason is that fewer younger Americans have opted out of holiday shopping altogether. Only 7% of 18- to 34-year-olds said they wouldn’t be buying holiday gifts. In comparison, 9% of those aged 35 to 54, and 17% of those over 55, said they’re skipping it.
Younger people are more committed to celebrating the holidays with gifts, and that’s driving up their spending.
33% of younger Americans strongly agree that they know exactly where they’ll shop this holiday season.
Popular Trends Among Younger Shoppers
Trendy gifts are keeping younger shoppers excited. They’re all about getting what’s hot right now. Think sherpa belt bags, phone charms, platform boots, tumblers, gaming gear, and all those cool accessories that everyone’s talking about.
These gifts are, perhaps, a way to connect, follow the latest styles, and make the holidays fun.
Imagine getting your best friend those platform slippers they’ve been eyeing, or finding the perfect gaming headset for your sibling. Younger shoppers want their gifts to be meaningful and exciting, and following the trends helps them do just that.
A Shift Toward Online Shopping
Another big trend is online shopping.
Younger Americans love it. About two-thirds (67%) of them plan to make most of their purchases online this year. It makes sense. It’s easy, you have tons of options, and you can compare prices without running from store to store.
But online shopping has its challenges. Shipping delays, unreliable stores, and tricky return policies can make things tough. Still, younger shoppers are ready to take on these challenges. They’re willing to deal with the potential headaches if it means getting the convenience they want.
67% of 18- to 34-year-olds planned to make most of their holiday purchases online this year.
What About Shopping Local?
Younger shoppers care about supporting local businesses, but not as much as older generations. Just over two-thirds (67%) of younger Americans say supporting locally-owned stores is important during the holidays. But for those over 55, over three-quarters (79%) put an emphasis on shopping locally.
This shows that while younger shoppers like the idea of buying local, they may be more focused on convenience and budget. If buying locally is easy and fits their plans, they’ll do it. But they won’t go out of their way for it as much as older shoppers will.
Final Thoughts on Holiday Shopping
Younger Americans are changing how we do holiday shopping. They’re spending more, starting earlier, and turning to online stores—all while keeping an eye on trendy gifts that mean something to the people they love.
What’s your approach to holiday shopping? Want to share your thoughts about gift buying and seasonal trends?
Join the conversation with Ipsos iSay and make your voice heard by taking surveys on these topics and more. Visit your dashboard today and share your perspective!
The Ipsos research shared in this article has been sourced from: https://www.ipsos.com/en-us/younger-americans-are-spending-more-holiday-gifts-heres-why-matters
