Holiday spending trends: affordable gifts, experiences and premium foods take center stage

SpendingPulse – which measures physical and online retail spending – together with the Mastercard Economic Institute’s macroeconomic forecasts show the expected shopping patterns for the holiday season.

Shoppers are turning to affordable categories

This season, shoppers are looking for gifts that are lower-cost, yet popular and easily accessible. According to Mastercard data, beauty products and fashion accessories have increased in several European countries, while the role of second-hand clothing is also constantly strengthening. In Spain, this segment already accounts for 4.9% of holiday spending. The trend is driven by both increasing price sensitivity and the spread of more sustainable consumption habits, which are pushing consumers towards smaller, yet valuable gifts.

Experiences: sustained demand for hospitality and events

Experience-based spending has been stable since the pandemic and will continue to be one of the most significant areas of non-essential spending this year. Demand for hospitality, cultural programs and live music events remained strong in several countries, with Germany, for example, where consumers are spending particularly heavily. Spending is often concentrated around the end of the year, as many people indulge in experiences to close out the year or organize a joint program around the holidays.

Premium foods: significant year-end surge

The holiday season is traditionally the most important food shopping period, and this year several markets have seen spectacular growth in this area. In the United Kingdom, seasonal food spending is 69% higher than in November, in the Czech Republic by 73%, while in Italy the average holiday basket value reaches 39 euros. The strengthening of premium categories is partly fueled by tradition, and partly by the strengthening of the euro against the dollar, which makes it more favorable to purchase certain imported foods. Consumers are increasingly opting for higher-quality, holiday-themed products.

Demand for far-flung destinations is growing

According to Mastercard flight booking data, far-flung, sunny destinations will continue to grow in popularity during the holiday season in 2025. Bangkok is showing the highest growth rate among bookings from Europe; but six of the ten fastest-growing destinations are located outside Europe. Several cities in Thailand and Egypt are also on the list, which is also partly supported by the strengthening of the euro against the dollar: the more favorable exchange rate makes longer, more distant trips more attractive for many at the end of the year.