UK festive spending set to rise to £24.6bn, PwC survey finds

UK consumers are expected to spend £24.6bn on presents and celebrations this Christmas, a 3.5% increase on last year, according to new research by PwC.

PwC’s Festive Predictions Survey forecasts average spending of £461 per adult over the period, up from £449 in 2024, despite continued pressure on household finances and a more cautious outlook among some age groups.

The survey found that 15% of shoppers plan to increase their festive spending compared with last year, while 14% expect to spend less. That represents a more subdued picture than in 2024, when one in five consumers said they would spend more.

Younger adults are forecast to be the biggest spenders. Almost a third of those aged 18 to 24 said they would increase their spending this year, with average outlay in the group expected to reach £541 per head. Those aged 25 to 34 are projected to spend £476 on average, with 21% planning to spend more than last Christmas.

By contrast, older consumers are more likely to rein in spending. PwC found that 18% of 35 to 44-year-olds and 14% of 45 to 54-year-olds expect to cut back, with the latter group forecast to spend the least per head at £436.

Women are expected to spend more than men overall, with average festive spending forecast at £471 per head, compared with £452 for men.

Among consumers planning to spend less, the cost of living was the most commonly cited reason. More than a third said they had less money available, while a similar proportion reported that their personal finances had worsened over the past year. Fewer pointed to concerns about government policy or the Budget as a reason for cutting back.

Food and drink is again expected to be the largest area of festive spending, with 27% of consumers planning to spend more than last year. Health and beauty products are forecast to be the third-highest priority, overtaking clothing and technology, particularly among younger shoppers.

PwC found that consumers continue to favour early Christmas shopping, with 46% saying they had finished buying gifts before the start of December. More than half of shoppers expect to complete most of their spending in early to mid-December, while 8% plan to leave it until the final week before Christmas.

Online shopping is set to dominate, with 64% of festive purchases expected to be made online, including click-and-collect orders. That is the highest proportion since the end of the pandemic, leaving just over a third of spending taking place in physical stores.

Jacqueline Windsor, head of retail at PwC UK, said: “The challenge is to balance competing consumer priorities by offering practical and joyful products at different price points.

“Despite a slow start to the festive period, the majority of Christmas shopping is done in December, and consumers tend to spend more than they expect. It’s still all to play for the retail and hospitality sectors in the final weeks before Christmas.”