Christmas 2025 was a season of contrasts as many shoppers found ways to indulge, despite the period being marked by cautious spending, a recent report has found.
According to IGD ShopperVista report, "Unwrapping Christmas 2025", confidence rallied from November to December, delivering a three-point uplift in shopper sentiment - the second-largest increase in 13 years.
Although trading results showed record sales, volume was flat, which is reflected in 40 per cent of shoppers feeling they bought less than a year before. This was particularly true of low-income post-families, with nearly half (45 per cent) claiming to have bought less overall compared to Christmas 2024.
Cost worries create selective indulgence
This festive boost came even as 47 per cent of shoppers admitted they were worried about the cost of Christmas, up from 43 per cent in 2024. Loyalty schemes played a critical role, with half of all shoppers using loyalty points to offset costs, and 41 per cent choosing retailers based on loyalty benefits.
Claimed spending patterns show a clear shift toward selective indulgence. Premium own label products were particularly popular in treat categories such as mince pies bought by 40 per cent of shoppers, desserts by 35 per cent and biscuits by 30 per cent.
Alcohol and confectionery saw the sharpest cutbacks overall, yet these were also the categories most likely to see trade-ups, with 69 per cent of chocolate tins purchased as branded or premium private label.
Socials influence as offline retail wins
The Christmas success stories reflect the mixed picture. Nearly half of shoppers (45 per cent) chose multiple small shops over one big basket trip, continuing the trend toward little-and-often shopping.
Social trends also shaped spending as younger shoppers drove a rise in gatherings, with 42 per cent of 18–24-year-olds enjoying more celebrations than last year.
Value and loyalty remain paramount
Rosie Young, Insight Analyst at IGD, commented, "Christmas 2025 showed us that even in a cost-conscious climate, the desire to celebrate remains strong as most spent freely. Shoppers were savvy, however, using loyalty schemes and promotions to manage budgets without compromising on quality.
“Value and loyalty will remain critical in 2026, alongside opportunities for premiumisation in treats and mission-based shopping. Retailers and suppliers that combine strong value cues with inspiration for smaller, in-home occasions will be best placed to succeed.”
The full findings from IGD’s ‘Unwrapping Christmas 2025’ report are available at the IGD website to subscribers of its ShopperVista service. ShopperVista provides food and drink industry businesses with up-to-date shopper data and insights to support effective strategic decision-making.