Australians Set to Break Christmas Spending Records in 2025—Here’s How Experience Gifts Are Taking Over!

Published on September 24, 2025

By: Paramita Sarkar

With the 2025 Christmas season fast approaching, Australians are predicted to significantly increase their spending, focusing more on experience gifts rather than traditional presents. A surge in consumer confidence, coupled with a slight easing of the cost of living and falling interest rates, means Australians are expected to spend nearly 14% more this holiday season compared to the previous year. This shift in consumer behavior is outlined in Deloitte’s annual Retail Holiday Report, which surveyed 150 retail executives and 1,000 consumers. The findings reveal that Australians, especially the younger demographic and blue-collar workers, are opting for experiences like holidays and events over physical gifts, signaling a major retail trend for 2025.

What’s Driving This Shift in Consumer Behavior?

The dramatic increase in consumer spending, particularly in the experience category, can be attributed to a combination of factors. As Australians feel more confident about their financial outlook, they are eager to spend on memorable experiences, such as vacations and unique activities, which they deem more valuable than material gifts. Experience gifts are expected to rise by nearly 30% in 2025, while traditional gift spending will grow by a modest 4.2%. This shift reflects a broader trend where consumers prioritize enriching moments over material possessions.

For the 2025 holiday period, Deloitte forecasts that the average Australian will spend $1,140 per person. This represents a sharp increase from 2024, with 33% of consumers expecting to spend more than last year, up from 24% in 2024. Among the most eager spenders are young Australians aged 18-24, with 59% of them planning to increase their holiday shopping budget.

Who Is Leading the Charge in Holiday Shopping?

Young Australians and blue-collar workers are leading the way in increased spending for the 2025 holiday season. Consumers aged 18-24 are particularly eager to spend more, with 59% of respondents in this age group indicating that they are increasing their budgets for this year’s Christmas shopping. Additionally, 38% of blue-collar workers are also expecting to spend more, reflecting the growing confidence in the Australian economy.

Interestingly, higher-earning households are expected to contribute significantly to the rise in overall spending. Consumers with incomes above $100,000 are notably more likely to spend more this holiday season, while those in households earning under $50,000 are more cautious, with 34% indicating they will spend less. The overall holiday spending is thus being driven by those with greater disposable income, further amplifying the economic recovery narrative.

What Are the Key Insights for Retailers in 2025?

Retailers in Australia are poised for a banner year in 2025, thanks to the renewed confidence among consumers. More than 80% of retail executives expect sales growth this holiday season. Moreover, approximately 74% of retailers anticipate that consumer confidence will improve over the next year, compared to just 41% in 2024. This positive outlook comes as cost pressures begin to ease. The survey showed that only 24% of retailers cited rising costs as their greatest concern, a significant drop from the nearly 40% who highlighted this risk in 2024.

Retailers are also expected to adapt to this shift by focusing more on offering experiences rather than just traditional products. This could include travel packages, concert tickets, and exclusive events that cater to the growing demand for experiential gifts. As Australians increasingly favor these gifts, retailers who can tap into this trend will likely see greater returns.

Where Is the Spending Going?

Most of the spending will be concentrated in major cities like Sydney, Melbourne, and Brisbane, where consumers are likely to spend more on luxury travel, events, and experiences. This trend is particularly prevalent among younger Australians who are embracing a lifestyle shift, opting for travel and entertainment over tangible gifts. However, domestic tourism is expected to see a significant boost, as Australians look to explore their own country in the face of still-high international travel costs.

Why Are Australians Choosing Experiences Over Gifts?

The choice to give experience gifts rather than material goods can be attributed to the growing desire for memorable experiences that bring people together. As people recover from the financial strain of the past few years, they are prioritizing quality time over physical items. Experience gifts are seen as more personal, meaningful, and often more sustainable, which aligns with a broader global movement toward conscious consumption.

How Is This Affecting Retail?

The rise of experience-based spending presents a unique opportunity for retailers. Those who can offer products that align with the growing demand for personal experiences, such as curated travel packages, adventure tours, and unique local events, will stand to benefit. Retailers who fail to adapt may risk losing out to competitors who offer more immersive and personalized experiences.

A significant shift towards experience gifts

As 2025 Christmas shopping approaches, Australians are set to spend more than ever before, with a significant shift towards experience gifts. This trend reflects a broader global movement toward experiential consumption, where holidays and adventures replace traditional material gifts. The combination of rising consumer confidence, falling interest rates, and easing cost-of-living pressures will likely propel Australian retail to new heights. Retailers who understand this trend and tailor their offerings to meet the growing demand for experiences will emerge as the winners in the 2025 holiday season.