Australians cut festive budgets, but still protect gifts and food

Australian consumers are tightening festive spending, but not abandoning the season, according to new data from GumGum’s 2025 Global Holiday Shopping Survey.

The study shows 63% of Australians plan to reduce their holiday spend this year, driven by cost-of-living pressure and more intentional budgeting. Yet core traditions remain intact: gifts (43%) and food and drink (23%) are still where money flows.

Mid-tier spending also persists, with a third planning to spend between $200 and $500, and another 26% budgeting up to $1,000. Travel remains a priority for a quarter of Australians.

The cuts, instead, fall on non-essentials - holiday décor is the first thing to go for a third of shoppers. Hybrid shopping remains dominant, with 72% planning to split purchases across online and in-store channels.

“Aussie shoppers are financially prudent but still value what makes the season meaningful,” said Matt Coote, managing director Australia at GumGum. “With budgets tightening, every impression has to work harder. Brands need to show up when consumers are most receptive.”

At the same time, festive sentiment endures: 42% associate Christmas with joy, and nearly one in five say they actively enjoy holiday advertising - suggesting there’s still room for emotional creative that aligns with mood and context.

Coote said brands must shift from volume to relevance. “Every impression needs to add value, not just noise.”