Originally published: Nine.com.au, 26 October 2026
With just 60 sleeps until Christmas, new data has shown exactly how Australian households plan to make ends meet during the festive season as cost of living pressures continue.
This follows a frugal 2025 in which consumers pulled back on spending across November and December. With lessons learned, planned spending this year is looking a little better, Nine money expert Effie Zahos reports, citing the Pureprofile Festive Report.
Now in its eighth year, the 2026 Christmas Report is based on insights from 1015 residents aged 18-64 who participated in the research through Pureprofile’s online research panel.
Almost two in three (62 per cent) said they are experiencing moderate to high cost-of-living impact.
Among those who feel the crunch, 90 per cent expect to adjust their expenses, 44 per cent plan to spend less on gifts, and 34 per cent will look for cheaper food and drink options.
On average, consumers have budgeted $518 for festive foods, an increase thought to be due to higher food prices.
Where shoppers are planning to save is with gifts, with the average planned presents spend down to $487.
That means in 2026, Aussies plan to spend $31 more on food than on gifts, which is almost double the difference seen in 2025 when the average food spend was $506 and the planned budget for gifts was $491.
Zahos said this is the first time Christmas gift spending has dropped since 2023, when the food spend was $406 and the budget for presents was $486.
To keep the holiday feast on track, 30 per cent of shoppers are turning to budget food options, which she describes as a “massive win” for supermarket home brands.
Rabobank has revealed Coles and Woolworths home brands are outpacing same store growth, surging more than 6.5 per cent at Woolworths, and 6.6 per cent at Coles in the first half of 2026.
Aussies will focus firmly on family, health and saving in 2027, shifting away from aspirational areas like travel and career advancement due to economic instability.
Top choices for planned presents this year are gift cards, with 45 per cent of those surveyed saying they will be including them on their Christmas gift lists.
Forty-four per cent plan to gift of clothing, and 37 per cent plan to give cash, focused on “necessities and/or the freedom to choose”.
Seventy-six per cent of those surveyed plan to purchase gifts at the Black Friday Sales on November 27. However, this plan has been described as a “double-edged sword”, with nearly half (47 per cent) of Black Friday shoppers admitting they usually spend more than planned at the sales.
Zahos’ advice is to “channel your inner Santa” by making a list, checking it twice, and using a grocery price comparison app to ensure your food spend goes further.
Martin Filz, CEO of Pureprofile, said consumers are increasingly focused on genuine value for money and budget-friendly options as they navigate the festive season and look ahead to 2027.
“Brands and retailers that enter 2027 seeking to meet people where they will be tapping into the dominant mood over the vital Christmas retail period,” he said.
“Given the ongoing cost-of-living crisis facing many Australians, this means offering comfort, reassurance and affordable options.”
Download the Australia & New Zealand Christmas & Black Friday Report 2026 here.
Read the full article and watch the ‘Money Minute’ segment with Effie Zahos, 9News Money Editor
