With the holiday rush fast approaching, how are different generations approaching holiday shopping this year? This is exactly what Coveo set out to explore in our “Gift or Grinch” 2024 Holiday Shopping Report, where we surveyed 4,000 U.S. and U.K. shoppers aged 18 and over to uncover the forces shaping holiday shopping trends in 2024.
Introducing our latest infographic, packed with exclusive, never-before-seen data from our 2024 Holiday Shopping Report. Released to coincide with Shoptalk Fall, this new asset uncovers fresh insights into generational and demographic shopping habits. From social media-driven purchases to a renewed emphasis on value and tradition, these findings offer retailers a sneak peek into the trends shaping the upcoming holiday season.
Get ready as we unwrap this year’s most anticipated holiday shopping trends!
Gen Z & Millennials: Leading the Holiday Shopping Surge
Move over Baby Boomers, Gen Z and Millennials are gearing up to be the most active gift-buyers this year! These younger generations are not just ready to shop; they’re ready to buy more. With more spending power at their disposal, our survey revealed that Gen Z shoppers are twice as likely as the average shopper and a surprising 10.5 times more likely than Baby Boomers to purchase more gifts this season than last year.
So, where are Gen Z and Millennials finding their gift inspiration? When it comes to finding special deals, 65% of Gen Z shoppers lean heavily on social media — nearly double the rate of other generations, which stands at 35%. This highlights a big shift in holiday shopping where trends, influencers, and social ad campaigns have become key drivers in the gift-buying process. In comparison, Baby Boomers prefer a more traditional approach: 79% of Boomers say that cost is their primary concern when making purchasing decisions, significantly influencing their choice of brands and whether they’ll make repeat purchases.
Spending Priorities: Adjusting Budgets for Holiday Gifting
While Gen Z and Millennials are eager to splurge on gifts, they’re also mindful of how they allocate their holiday budgets. Younger shoppers are willing to make sacrifices, cutting back on non-essential spending like dining out, social events, travel, and entertainment to prioritize their gift-giving.
However, it’s not just about spending — it’s also about the environmental and personal impact of excess. An emerging trend among Gen Z shoppers is the concern about the clutter that often accompanies gift-giving. 18% of Gen Z shoppers worry that their holiday purchases could contribute to unnecessary accumulation of items, a sentiment shared by higher-income households earning over $100K annually.
Baby Boomers and Gen X: Focused on Value and Tradition
While younger generations are making waves with their socially-driven shopping habits, Baby Boomers and Gen X are taking a more familiar path this holiday season. For these groups, value remains the cornerstone of their shopping strategy. As noted earlier, Baby Boomers are especially cost-conscious, allowing price to heavily influence their entire holiday purchasing strategy.
On the other hand, Gen X shoppers, particularly those in higher-income households, are more invested in the joy of the gift-giving process itself. According to our survey, 53% of higher-income families, largely led by Gen X, report that finding the perfect holiday gift brings them joy. This group of shoppers is more likely to put time and effort into planning their holiday purchases, savoring the hunt for that ideal present that will make their loved ones’ holidays extra special. In contrast, other groups are less likely to spend time planning ahead.
Popular Holiday Gifts for 2024
As we head into the holiday season, some gift categories are already proving to be more popular than others. 36% of shoppers across all demographics are gravitating toward classic gift options like jewelry, cosmetics, and perfume – the top gift category for both the U.S. and UK cohorts. These tried-and-true categories remain holiday favorites for those looking to make a memorable, timeless gesture.
Interestingly, the way younger shoppers approach holiday gift searches is also evolving. 69% of Gen Z and 70% of Millennials find curated search categories, such as “gifts under $50,” especially helpful when browsing retailer websites. This preference for clear, structured categories suggests that these generations are looking for efficiency when it comes to shopping. They want to find the right gifts quickly, and they appreciate suggestions that help them do so. Retailers should take note: offering streamlined, intuitive search options that help shoppers locate the perfect gift faster is a great way to improve customer experience and boost holiday sales.
Evolving Preferences and Shopping Behaviors
Beyond the specific gifts themselves, our survey also points to broader shifts in how different generations approach the holiday shopping experience. Younger shoppers, in particular, are more likely to respond to targeted marketing strategies that leverage social media and influencer endorsements. Meanwhile, older shoppers are more likely to be influenced by promotions emphasizing savings, value, and reliability.
These evolving preferences signal an important opportunity for retailers to fine-tune their approaches for different customer segments.
Wrapping it Up
The 2024 holiday shopping season reveals a blend of tradition and modern trends. While Gen Z and Millennials are embracing social media-driven gift discovery, Baby Boomers and Gen X are sticking to tried-and-true methods with a focus on value. Across all demographics, shoppers are focused on making meaningful purchases that resonate with both their values and their wallets.