Consumers Entering the Holiday Season in Good Spirits—and Ready to Spend

Consumers Entering the Holiday Season in Good Spirits—and Ready to Spend

Survey: US Consumers Set to Spend an Average of $1,022 on Holiday Gifts and Related Items

After navigating a second year of pandemic uncertainty, Americans appear ready to celebrate—and open their wallets—this holiday season. Based on its annual Holiday Spending Survey, The Conference Board estimates consumers intend to spend an average of $648 on holiday gifts this year—plus an additional $374 on related non-gift items.

Total gift spending is on par with 2020—but purchasing patterns are shifting

The $648 consumers planning to spend on gifts in 2021 is down slightly from the $673 they spent last year. Nevertheless, this year’s gift budgets remain historically high—and on par with pre-pandemic spending levels. Compared to last year:

• Gift cards are set to see the biggest spending increase, followed by Footwear & Apparel
• Sporting Goods are forecast to see the largest decline, followed by Tools & Hardware

These trends likely reflect the shift from last year’s pre-vaccine holidays, when surging infection rates and social distancing favored gifts enjoyed at home. By contrast, consumers this year are anticipating increased social activity that widens their gift-giving and entertaining circles. Meanwhile, about 6 in 10 expect to pay more for gifts and food. Thus:

• Spending on non-gift holiday items—such as food, decorations, and wrapping paper—is expected to reach $374 this season. These costs may help explain the slight decline in total spending intention on gifts compared to 2020, and suggest some consumers may spend more than they initially budgeted.

Holiday Travel—and a Return to the Mall?

The easing of pandemic restrictions is also set to alter where consumers spend their holidays—and make their purchases:

• Back to the mall: Just 42% of consumers intend to make at least half of their gift purchases online this year—down from 52% in 2020, and the first year-over-year decline recorded in a decade.
• Holiday travel plans: Nearly a third of consumers (30%) plan on traveling away from home this holiday season. Of those, 48% intend to drive, with slightly less—42%—choosing to fly.

“Consumers are entering the holidays in a festive mood this year,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “The Conference Board Consumer Confidence Index® increased in October, after three months of declines fueled by the summer Delta surge. With COVID-19 infections now easing—and vaccinations rates continuing to climb—consumers are more willing and able to return to shopping in person. 

“However, these spending intentions may be thwarted by severe supply-chain challenges and transportation issues. If these problems persist, Americans may face bare shelves that send more shoppers back online, and could also mean delays in receiving products purchased in time for the holidays.”

Source: The Conference Board Consumer Confidence Survey®, October 2021   

About The Conference Board

The Conference Board is the member-driven think tank that delivers trusted insights for what’s ahead. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org