New research with 2,000 adults* delves into spending habits over the festive period compared to previous years, with more than £2.2 billion extra expected to be spent this Christmas on fancy party food, decorations, and trivia games across the nation.
The findings, released by Virgin Money, show that 47% of people intend to enjoy Christmas more than ever before following a ‘miserable’ 2024. The study also highlights that 30% of respondents are eager to indulge in luxury, while 29% are looking to treat loved ones to bigger and better gifts. Additionally, 32% plan to spend more on physical presents, with an average of £479 per person.
The biggest festive spending increases include extra spend of £14 per family day out over the festive period, an additional £10 on snacks and £6.40 on luxury items for the Christmas dinner. However, less is being spent than usual on Christmas jumpers, party outfits and cheese boards compared to previous years.
Virgin Money also recently revealed their Autumn Customer Spend Trends report, showing that customer spending is up year-on-year by more than £27 million on lifestyle purchases, from dining out to entertainment.
Andrew Carter, head of personal banking at Virgin Money, said: “The results have shown spending is on the rise this Christmas, as people look to add extra magical touches this year.
“While desire and expenditure for physical gifts is on the increase, respondents also expressed a desire to give and receive more experiential presents too, such as theatre and concert tickets and spa days.
“Wherever people are spending their money, it seems as though a little extra here and there is being spent to elevate elements of the festivities this year.”
When it comes to shopping strategies, 27% of respondents are looking to spend more ‘strategically’, taking advantage of sales and discounts, while the same percentage set strict budgets to avoid overspending. Additionally, 25% are focusing on more thoughtful and personalised gifts, and 15% are prioritising experiences over physical presents, according to the data from OnePoll.com.
Respondents were divided on whether physical or experiential presents mean more, with theatre and concert tickets, spa day vouchers, and entry to sports events being the top experiential gifts purchased.
Andrew Carter, head of personal banking at Virgin Money, added: “We always want to get more for our money and the research has shown that people want to find the best deals to help their budget go further.
“And gifts that have more meaning seem to be taking centre stage this Christmas.”
“Getting a lot more for spending a little extra seems to be the name of the game – and after a challenging year for many, Christmas is clearly a natural fit for enjoying some of the finer things."
TOP 10 THINGS ADULTS ARE SPENDING MORE ON COMPARED TO LAST CHRISTMAS:
- Trips away over the Christmas period: +£13.60
- Fancy party food and festive snacks: +£9.66
- Luxury items for Christmas dinner: +£6.40
- Hosting dinner parties: +£6.01
- Physical gifts: +£6.00
- Christmas decor for your home: +£5.64
- Party games and trivia sets: +£3.13
- Experiential gifts: +£2.60
- The Christmas tree: +£2.51
- Travel to visit family: +£1.73
*About the research
Survey carried out by OnePoll with 2,000 UK adults who celebrate Christmas, nationally representative on age, gender, region, between 28th November and 3rd December 2024.