Originally published: AdNews, 26 October 2026
Australians plan to spend more on food and drink than this Christmas, with planned gift spending falling for the first time since 2023, according to research from Pureprofile.
The ASX-listed data and insights company said food and drink spending is expected to average $518, up $12 on 2025, while gift spending is expected to average $487, down from $491.
Pureprofile said the cost of living is dampening festive sentiment, with 62% of Australians reporting a moderate to high impact and cutting back on essential and non-essential purchases.
The 2026 Christmas Report, now in its eighth year, is based on a survey of 1,015 Australians aged 18 to 64 through Pureprofile’s online research panel.
Less than a quarter (24%) think the economy is strong, down from 29% in 2025, and a third (33%) report having had a “good” or “fantastic” year, down from 36%.
Some 79% of Australians are adjusting their Christmas spending accordingly. Some 35% plan to spend less on gifts, and 30% are choosing more budget-friendly food and drink, up from 21% in 2025.
Among the 62% under moderate to high cost-of-living pressure, 90% expect to adjust their expenses, 44% plan to spend less on gifts and 34% will look for cheaper food and drink.
To protect food and drink spending, the top categories Australians plan to cut are decorations (70%), eating out (65%) and experiences (58%).
Pureprofile CEO Martin Filz said consumers are increasingly focused on genuine value for money and budget-friendly options as they look ahead to 2027.
“Brands and retailers that enter 2027 seeking to meet people where they are will be tapping into the dominant mood over the vital Christmas retail period,” Filz said.
“Given the ongoing cost-of-living crisis facing many Australians, this means offering comfort, reassurance and affordable options.”
Some 58% of Australians plan to use sales to bridge the Christmas budget gap, rising to 76% for families with children aged 0 to 12. Appeal among those feeling the cost-of-living squeeze is up to 61% from 48% in 2025.
But 47% of Black Friday shoppers admit they often spend more than planned, rising to 58% for young families and 51% for both Gen Z and Millennials.
Some 44% said the sales create pressure to spend money they hadn’t planned to, up from 34% in 2025, and 37% find the sales period “too overwhelming”, up from 29%.
“As Black Friday becomes the major sales event of the year, Australians are increasingly experiencing both choice fatigue and the fear of missing out,” Filz said.
“Retailers can win trust by showing they understand the pressure shoppers are under and helping them stay in control.
“Clear and honest discounts, easy comparisons, price-match promises and flexible returns are keys to seeing carts fulfilled.”
One in five (21%) Gen Z are buying more directly from social platforms such as TikTok, Instagram and Facebook than a year ago. Gen Z are also more likely than Millennials to prefer shopping for gifts in store (65% to 50%).
“With a desire for experiential environments, ‘third spaces’ to hang with friends, and tactile product evaluation, Gen Z are redefining what in-store shopping means and turning it into a cultural moment,” Filz said.
“Mecca, Kmart and Glassons are key examples of retailers catering to Gen Z, and retailers should take note of these elements to streamline and entice in-store visits, as it no longer suffices to merely have products on display.”
Pureprofile said Gen Z should be targeted through social media or in store, while Google search and retailer emails will have more impact with older generations.
Gen X (37%) and Boomers (35%) are around twice as likely as Gen Z (18%) to respond to retailer emails and newsletters. Gen Z (57%) are about twice as likely as Gen X (29%) and Boomers (24%) to discover deals through social media.
Boomers (33%) are the main audience for deals found through TV, radio and print advertising, compared with 11% of Gen Z.
One in five Australians may use AI assistants to find deals. More than one in four Millennials (26%) and Gen Z (26%) plan to use AI this year to help with Christmas plans and gifts. Among those likely to use AI, the top uses are comparing prices or finding deals (41%), getting gift ideas for specific people (31%) and getting product recommendations while shopping online (28%).
The most wanted gifts are gift cards (45%), clothes or shoes (44%), money (37%) and food and drink (33%). Some 15% plan to give homemade gifts, up from 11% in 2025, rising to 20% among Gen Z, but only 17% hope to receive one.
Pureprofile said economic instability is forecast to continue into 2027 and priorities are shifting to things people feel they can control.
The top personal priorities for the new year are saving more money (53%), improving health and fitness (39%) and spending time with family (37%). Travel (25%) and career advancement (14%) rank lower.
Download the Australia & New Zealand Christmas & Black Friday Report 2026 here.
