UK saw a rise in grocery spending over Christmas 2025 despite continued pressure on household budgets, with shoppers becoming more deliberate about where they traded up and where they held back, according to a new report from Worldpanel by Numerator released on Monday (Jan 26).
The latest Christmas Viewpoint 2025 report shows total Christmas spending rose 3.2 per year on year, delivering a record £14.5bn in take-home grocery sales. However, the uplift was driven in part by inflation and a shift in behaviour rather than unrestricted festive spending.
Worldpanel found shoppers brought more occasions back into the home, cutting back on eating out and stretching grocery budgets further. As a result, Christmas baskets became leaner, with fewer packs and fewer categories, alongside a stronger reliance on promotions and price-led deals.
Fresh and ambient grocery spend was increasingly shaped by trade-offs, with shoppers prioritising value across much of the shop while selectively upgrading for key moments.
Premium private label performed strongly.
"Premium private label benefited from that in a big way. Shoppers trusted it with the main event of the Christmas meal, using it as a way to upgrade without feeling reckless.
"That trade-up was deliberate, further enhancing a strong year for premium private label," states the report.
Brands, however, continued to play a central role, accounting for 60% of Christmas category spend.
"The result was a Christmas table shaped by restraint and release. Careful, value-led shopping across much of the basket, punctuated by moments of deliberate indulgence where tradition still carried weight."
Promotions emerged as a defining feature of the festive period. The share of spend on deals reached its highest level since before the pandemic, with growth in many Christmas categories coming almost entirely from discounted sales.
Price cuts did most of the heavy lifting, while coupons played a supporting role in specific missions. Discounters and several major supermarkets increased promotional intensity, reinforcing price competition during the key trading weeks.
The report adds, "Within this heavily promoted environment, familiar patterns re-emerged. Some categories absorbed the pressure better than others. Chocolate and Christmas nibbles benefited from sustained promotional support, while alcohol felt the strain, with promotional spend down year on year despite remaining outside HFSS (high fat, sugar, salt) restrictions."
Away from food, general merchandise accounted for one-fifth of total Christmas spend, highlighting its role in growing basket size.
Homeware and beauty led value growth, while toys, entertainment and arts and crafts were among the fastest-growing categories, supported by demand for affordable gifting and strong online sales.
The report concludes that Christmas 2025 was defined by precision rather than excess, with shoppers preserving traditions that mattered most while carefully managing overall spend. For retailers and suppliers, Worldpanel says future growth will depend on understanding where shoppers are still willing to flex, and where value limits have already been reached.