Most Australians to cut festive spending, focus on gifts & food

New research from GumGum has found that many Australians plan to curb their spending this Christmas, with a majority intending to prioritise gifts and food over other festive expenses.

The 2025 Global Holiday Shopping Survey from GumGum, which included responses from 3,000 consumers across Australia, the United States, United Kingdom, Canada, Germany and Belgium, indicates that 63% of Australians will reduce their holiday spending this year. Of these, 21% aim to spend less than AUD $200, 33% expect to allocate between AUD $200 and AUD $500, while 26% plan to set aside AUD $500 to AUD $1,000 for gifts and celebrations.

Holiday priorities

Despite the focus on trimming costs, Australian consumers remain intent on celebrating. The findings suggest that 43% of Australians are prioritising gifts as their top spending category this festive season. This is followed by travel at 25% and food and drink at 23%.

Matt Coote, Managing Director, Australia, at GumGum, commented on these shifting behaviours.

"Aussie shoppers are financially prudent but still deeply value the moments that make the season special," said Matt Coote, Managing Director, Australia, at GumGum.

Spending on decorations appears most vulnerable, with one third (33%) reporting this would be the first area to be cut if they needed to reduce expenses. Other discretionary spends are expected to be put on hold as Australians focus primarily on meaningful and necessary celebrations.

Shopping habits

Consumer behaviours regarding how Australians plan to shop are also evolving. According to the research, 72% intend to make purchases both online and in physical stores, compared to just 8% who will shop exclusively online.

These shifts are requiring brands to reassess their messaging and engagement strategies. "With 63% planning to spend less this year, brands will need to be more sophisticated in how they deliver the right message at the right time. Every impression needs to add value, not just create noise. This is where GumGum's Mindset Graph can help brands understand the consumer mindset and show up when people are most receptive," Coote added.

Attitudes to advertising

The research looked at consumer attitudes towards holiday-themed advertising. While most Australians described their attitudes to holiday ads as neutral, about one in five reported actually enjoying them.

The study also explored the emotions associated with the holiday season. It found that 42% of Australians identified 'joy' as their predominant feeling during the holidays.

Coote observed,

"It's proof that timely, well-crafted ads still have the power to capture attention in a cluttered market. With nearly half of Aussies associating 'joy' with the holidays, brands that tap into that emotion and show up with messaging that matches the mindset will win. With contextual and attention-based advertising, brands can connect meaningfully, even when budgets are under pressure," Coote added.

GumGum's survey provides a snapshot of how Australians are responding to economic pressures during this festive period and offers insight into the ongoing importance of both tradition and adaptability in seasonal consumer behaviour.