More than half of consumers surveyed by Jungle Scout said they planned on spending the same amount of money on gifts this year as last year.
A majority of consumers plan to buy presents from Amazon this holiday season while still aiming to support small, local businesses.
More than two-thirds (67%) of the 1,000 U.S. shoppers surveyed in Jungle Scout’s Q4 Consumer Trends Report said they will turn to the e-commerce giant this year for gifting needs. Amazon ranked as the top online gift destination, followed by Walmart and Target’s website, eBay and Etsy. The most popular in-store gift destinations included Walmart, Target, Kohl’s, specialty or boutique retailers and Costco.
One-in-five shoppers said they planned on buying gifts from small and local businesses as much as possible this holiday season, a stat that has doubled since 2022.
Younger consumers are most likely to shop local businesses this holiday season, with 14% and 10% of Gen Z and Millennials saying so, respectively. In the face of high prices, 20% of consumers across each four age groups (Gen Z: 13%, Millennial: 20%, Gen X: 20%, Baby Boomers: 24%) said they plan on giving homemade or DIY gifts this year.
More than half of consumers surveyed (52%) said they planned on spending the same amount of money on gifts this year as last year, with 34% reporting that they plan to cut back. On holiday decorations, 40% planned to spend the same amount, while 51% are planning to cut back. Travel was the area where consumers said they plan to cut back the most, with 52% of respondents saying so.
“The U.S. inflation rate spent much of 2023 retreating from record highs seen throughout 2022, but the cumulative impact remains a concern for most consumers,” said Jungle Scout. “As we head into the holiday season, that impact is being felt by 85% of shoppers who have modified their spending due to rising prices. And while many are cutting back on holiday expenses such as travel or decorations, a much smaller portion are extending that approach to gifts: Two-in-three expect to spend the same or more than they did last year.”