Thanksgiving spending trends in the U.S.: spending to drop to $125 billion, beauty products and other products become popular gifts

According to a survey released recently by the International Consumer Council (ICSC) and Circana, consumers plan to spend about $125 billion during the Thanksgiving weekend, which is about $5 billion less than the $129.5 billion expected in 2023.

The survey of 1,013 respondents was conducted from November 8 to 10, and the results showed that millennials and Generation X were the main spending groups, with average spending of $628 and $629 respectively, while baby boomers spent an average of $444.

Data shows that beauty products performed strongly during holiday shopping. This year, 29% of American consumers plan to buy beauty products as gifts, a slight increase from last year. From January to September, sales of high-end beauty products in the United States increased by 7% year-on-year to US$22.8 billion, while mass-market beauty products only increased by 2%. Cosmetics are one of the fastest-growing high-end categories, with sales increasing by 5% in the first nine months of this year. High-end fragrances are the fastest-growing category so far in 2024, with sales increasing by 14% as of September.

The survey found that 41% of families with children plan to buy beauty products as gifts, 11 percentage points higher than the overall consumer population. This trend reflects the preferences of Generation Alpha in the beauty market, especially in the high-end beauty sector. Driven by social media, the demand for high-end beauty products among young consumers continues to increase.

57% of respondents said their main reason for shopping during this period was to look for deals and discounts. The majority (88%) said they visited stores during these five days.

Consumers are looking to buy items for the holiday season as concerns about inflation and other economic uncertainties remain.

66% of respondents said they will take advantage of deals and discounts to buy daily necessities, and 84% of consumers plan to buy holiday gifts for others, followed by food and beverage (76%), other holiday-related items (73%), entertainment and activities (56%) and personal services (56%).

Forecasts indicate that this year's Black Friday discounts are expected to hit a four-year high.  

Author✎ Summer/
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