A good majority of U.S. consumers, 67%, plan to spend under $500 on holiday expenses, nearly 40% less this year compared to a 10-year national average.
That’s a prime finding of Jungle Scout’s Q4 Consumer Trends Report that polled more than 1,000 consumers on spending and behavior during the holiday season.
Additional findings, according to a press release, include:
- 33% are reducing holiday expenses, and the top ways they plan to cut back include spending less on gifts and decorations.
- More than half (58%) are searching for deals and discounts when holiday shopping.
- 20% get holiday gift ideas from social media, with Facebook leading as a source of inspiration, followed by Instagram and TikTok.
- Virtual gifts like streaming and music subscriptions are among the most popular gifts of 2022.
- 54% are making travel plans for 2023 — up 16% from last year.
While re-evaluating finances is a priority for 79% of consumers, some say things like dining out, getting manicures and smoking or vaping remain non-negotiable expenses in 2023.
“Consumer expectations and priorities will shift in 2023 as inflation continues to impact spending,” Michael Scheschuk, president of small and medium business at Jungle Scout, said in the release. “As e-commerce advances, consumers will seek personalization at every stage of the customer journey. Brands should diversify sales channels and consider expanding into social commerce through popular platforms like TikTok, allowing them to engage with new audiences in more authentic and memorable ways.”