NEW YORK — U.S. consumers are bracing for their first holiday spending dip since 2020, according to PwC’s 2025 Holiday Outlook survey. Shoppers expect to spend an average of $1,552 this season, down 5% from last year, with gift budgets falling 11%. Gen Z is pulling back the most, planning to reduce spending by 23%, while baby boomers expect to spend 5% more.
Even with tighter wallets, traditions remain strong. Families still plan to travel, gather, and exchange gifts, with food and gift cards among the most resilient categories. Nearly three-quarters of respondents say they’ll celebrate with a home-cooked meal, and gift cards remain a go-to way to preserve generosity while sticking to budgets.
Value is driving choices. Seventy-eight percent of consumers say they’ll seek less expensive alternatives, and nearly 40% of planned gift spending will occur during the five-day stretch from Thanksgiving to Cyber Monday.
Generational shifts are shaping behavior. Gen Z is prioritizing sustainability and wellness in their purchasing decisions, often using social media or AI to discover products, while Baby Boomers lean on traditional indulgences and in-store shopping. Households with children are powering holiday demand, spending more than twice as much as those without.
Retailers face a more fragmented season, where price promotions alone aren’t enough. The winners will be those who recognize the nuances — balancing discounts with personalization, values, and experiences that resonate with different life stages.
