Holiday Shopping Trends for 2024

7 holiday shopping trends for 2024.

Use insights from these key retail trends to sell more over the Christmas shopping season.

Related: We'll cover retail shopping trends in this article. If you're looking for design trends, check out the report, Crafts that Sell Well, updated with trend forecasts for the current year.

1. Spending Outlook

How much do shoppers plan to spend for their holiday shopping in 2024?

Holiday season spending is expected to grow compared with 2023 levels. Growth will be particularly strong in online holiday season spending, which is expected to grow by 8.4%. ^{(source Adobe)}

On average, most shoppers plan to spend between $100 and $500 on holiday gifts in 2024. There's a distinct difference between the spending levels for younger shoppers compared with older consumers.

Gen X and Boomers generally have higher holiday budgets, while Gen Z shoppers have the lowest holiday budgets. While Gen Z shoppers have the lowest holiday shopping budgets, 34% of them plan to spend more than they spent in 2023. ^{(source Tinuiti)}

2. In-Store vs. Online Shopping

Where will consumers shop?

Online shopping will be the star of holiday shopping in 2024, and mobile shopping will be particularly strong.

The expected growth in spending this holiday season will be seen most strongly in online shopping as 34% of shoppers plan to spend more online. Only 29% of consumers plan to do most of of their holiday shopping in-store, while 70% plan to shop mostly online or equally in both locations. ^(Tinuiti)

Purchases made on mobile devices are forecast to make up 53.2% of online holiday spending, with Gen Z and Millennials leading the way in shopping via smartphone. ^(Adobe)

3. Shopping Timing

When do consumers plan to do the majority of their holiday shopping?

The trend toward earlier holiday shopping that we've seen over the past few years will continue in 2024.

31% of people plan to start their holiday shopping in October or sooner. And 48% plan to complete half of their shopping or more before Thanksgiving. Only 30% will wait until Thanksgiving or later to start shopping. ^(Tinuiti)

The search for great deals will drive a lot of the holiday shopping timing, with Amazon's Prime Event Big Deals motivating consumers to start holiday shopping in October. The desire to spread spending across several months is another motivating factor for shoppers who plan to start early.

Black Friday & Cyber Week

While plenty of holiday shopping will be complete before Thanksgiving, plenty of consumers, particularly younger shoppers, will be drawn by the promise of deep discounts and plan to shop between Thanksgiving and Cyber Monday.

70% of consumers will be on the lookout for great deals during the Cyber Five (Thanksgiving, Black Friday, Saturday, Sunday, and Cyber Monday). ^(Tinuiti)

Last Minute Shoppers

When holiday shopping is left to the last minute, many consumers will turn to in-store shopping, gift cards, and online shops that have a reputation for fast shipping.

4. Product Discovery

How will consumers research gift ideas?

Social media is the top source of holiday gift ideas, with 38% of consumers finding inspiration on social platforms. Gen Z leads the way in this trend, with 64% of Gen Z consumers finding gift ideas on social media, particularly TikTok.

TikTok is the smallest platform (Compared with Facebook and Instaragram), but it is also, by far, the fastest growing platform ^(Tinuiti)

5. Popular Product Categories

What types of products will consumers buy?

We can examine the popularity of product categories in a couple of different ways.

1. Most popular product categories for 2024.

This data tells us what percentage of shoppers plan to buy gifts from a particular product category in 2024. Information about the most popular product categories provides insights about current demand for a category of gifts.

2. Sales growth within categories compared to the previous year.

This information gives insight into popularity trends and whether a particular gift category is becoming more or less in demand over time.

Popular Product Categories for Christmas 2024

Distinct differences exist among generations.

Over half of shoppers across all generations plan to buy gifts in the apparel & accessories group, making it the most universally popular category.

Boomers are more likely to buy gift cards than any other generation.

Gen Z plan to purchase gifts fairly evenly across the top seven categories.

Millennials will be the top shoppers buying toys this holiday season. ^(Tinuiti)

Product Categories Projected Sales Growth for 2024

6. Shopper Priorities

What factors will influence purchasing decisions?

Price and discounts will influence shoppers' buying choices more than any other factors in 2024.

Discounts

Throughout 2024, consumers have shown growing price sensitivity, resulting in more shopping during traditional major sales dates. This trend is expected to continue through the 2024 holiday shopping season.

Holiday discounts will be an effective strategy to promote sales this year.

Price Points

In 2024, shoppers will spend, but they will also be trading down across several categories.

What does trading down mean?

When shoppers are trading down, it means they are buying products, but they are not buying the most expensive items available within that category of product. It may involve switching to a lower cost brand, or buying a smaller amount of a luxury product.

As shopper seek to enjoy a little bit of luxury for themselves and loved ones, holiday shopping will provide a bit of a boost to sales of some higher-end items.

7. Generative AI

How will generative AI influence purchasing decisions?

Generative AI is making a mark on consumers' shopping habits.

Roughly half of all shoppers plan to use AI tools to assist with their holiday shopping in 2024. That number is significantly higher amount younger shoppers as 67% of Gen Z shoppers plan to use AI-powered tools in some capacity to assist with their holiday shopping.

How will shoppers use AI tool in their holiday shopping?

• 28% to find product deals
• 25% to compare products
• 19% to summarize product reviews or information
• 10% to navigate online stores and make purchases
• 16% to generate personalized gift ideas
• 11% to virtually try on or visualize a product
• 46% don't plan to use AI-powered tools to assist with holiday shopping

^(Tinuiti)

KEY TAKEAWAYS for Christmas 2024

Here are a few key takeaways from the 2024 holiday shopping trends.

Discounts & Lower-Priced Alternatives:

Overall, shoppers plan to spend more than they did in 2024, but they are still price sensitive. Offering discounts or lower-priced alternatives may help boost sales this holiday season.

Online, Particularly Mobile, Shopping:

Online shopping continues to grow in popularity, particularly among younger shoppers. Consider prioritizing your business' online presence, including mobile shopping capabilities.

Early Preparation & Promotion:

Shoppers are starting significant holiday shopping in October, or sooner. Make sure you holiday season products and promotions are available in time to catch these early shoppers.

Generative AI:

The use of AI tools to aid shopping decisions has grown significantly in 2024. It may not have a large image on your sales currently, but keep a close eye on this trend to see how it may impact your business in future years.

Generational Differences:

There are significant differences in the way different generations embrace these trends. Be sure you understand who you target customer is, so you can respond to holiday shopping trends in ways that resonate with your particular customers.

You can see further breakdowns of several trends by generation in the data sources linked below.

HOLIDAY SHOPPING TRENDS AND STATISTICS

Sources used for this article:

• Adobe: 2024 US Holiday Shopping Forecast
• Tinuiti: 2024 Holiday Shopping Trends (register for the full report)