Due to the rising cost of living, over half of Brazilian consumers said they would be looking for the cheapest prices and best offers when holiday shopping in 2022. Another ** percent of consumers planned to take advantage of promotional events like Black Friday that holiday season.

Inflation is set to impact many consumers over the holiday season in the United Kingdom in 2022 and there are certain behaviors that consumers who are worried about inflation are likely to engage in. One of the main examples is that around 85 percent of consumers said that they planned to buy fewer items in 2022. The majority of this demographic also said that they would mostly buy things which are on sale or discounted.

In 2024, a considerable share of consumers in the United States intended to look for ways to save money when buying products and gifts during the Christmas season, due to the impact of inflation. Notably, about ** percent of surveyed U.S. shoppers said they would look for sales more than usual, while about ** percent said they would buy less expensive gifts this time around. Four in ** respondents said they would not change how they shopped for the holidays. Inflation across the globe The ripple effect of COVID-19, the Russian invasion of Ukraine, as well as other contributing factors, had been felt all over the world in 2022 and 2023. In the United States, for example, the average price of a basket of goods went up by some ***** percent in 2022, a considerable jump compared to previously measured annual inflation rates. In similar fashion, the European Union contended with an inflation increase of over **** percent. ”This used to be cheaper” It comes to no surprise that a sudden and lingering spike in consumer goods prices leads to changes in consumer spending and behavior. From making changes to how much one spends on non-essential goods to being extra mindful when browsing in-store, the average shopper remains, and is likely to remain, concerned about rising prices and their ability to purchase goods for the foreseeable future.

Between November 1 and December 31, 2022, online shoppers globally are expected to spend an estimated 209.7 billion U.S. dollars on holiday shopping. Cyber Monday alone is forecast to generate approximately 11.2 billion dollars in online sales.

The effect of economic uncertainty on holiday shopping

In 2022, the twin evils of inflation and economic stagnation threaten to affect consumer demand during this year's festivities. In a survey conducted in August 2022, nearly a third of consumers worldwide stated that galloping inflation was their  prime concern this holiday season. Other issues like uncertainty about the global economy and lack of savings also came up as areas of concern. Since many people wait for the holidays to buy big-ticket items, these categories are forecast to witness the highest rates of e-commerce discounts, with e-retailers anticipating grim consumer sentiment to affect this year's peak season sales. Categories like computers and electronics could see double-digit discount rates that online shoppers can benefit from.

Impact of inflation on e-commerce

During the holiday season and beyond, the global macroeconomic outlook for 2022 is spelling bad news for e-commerce businesses across the globe. In the United States, that rapidly grew and thrived during the pandemic got hit by a wave of e-commerce layoffs that dealt a blow to the industry. One way consumers are dealing with rising inflation and economic uncertainty is by resorting to recommerce: In a May 2022 survey, around 93 percent of U.S. shoppers reported that inflation impacted their decision to buy and sell secondhand products online in the past twelve months. The recommerce market in the U.S. is set to reach nearly 180 billion U.S. dollars in 2022.

For 2022's holiday season, a significant share of consumers intended to cut back on spending due to inflation. In the United Kingdom (UK), for example, roughly **** in ** shoppers said they expected to reduce all of their Black Friday and Christmas spending this year. Only about ** percent of surveyed UK consumers said they would not cut back on their holiday spending. According to the same report, European holiday season spending in 2022 was expected to see a considerable drop in comparison to 2021.

Why do consumers shop on Black Friday?

Black Friday takes place on the Friday after Thanksgiving in the United States and is the largest discount shopping event of the year. While Thanksgiving is not celebrated overseas, the shopping event did become an international phenomenon over time. When asked why they planned to shop during Black Friday, about ***** in ** consumers in the United Kingdom said the sales event offers better deals and prices for buying gifts.

The impact of inflation on holiday shopping

Unsurprisingly, consumers are more cautious about their spending due to the wave of rising consumer prices. This applies especially during the holiday season, which is typically a time of year that involves more expenses than usual. According to a survey conducted in Germany, roughly half of consumers planned to pay closer attention to offers during Black Friday as a result of rising prices and the effects of the energy crisis in 2022. Close to the same number of German shoppers said they intended to buy less overall.

With the cost of living having risen in the United Kingdom in 2022, inflation is set to impact holiday shopping for many consumers over Christmas 2022. Over a third of consumers said that this impact would be major, while only ********* of consumers think that inflation will not have any impact on their Christmas shopping.

The inflation rate for both Africa, the Middle East, and Latin America and the Caribbean reached more than 12 percent in 2023. Among the provided continents or regions, Asia and the Pacific had the lowest inflation rate that year. Consumer prices increased around the world following the COVID-19 pandemic and the Russian invasion of Ukraine. Inflation and food security Increases in food costs are one of the most prominent impacts of inflation globally. In the United Kingdom, for example, consumers have indicated that they have worried more about food costs in 2023 than in previous years. Meanwhile, in Canada, only a small fraction of survey respondents have said that inflation has had little impact on household food costs. Consumers have responded to rising food costs through various coping mechanisms. For example, Italian consumers have indicated that they purchase less unnecessary products, cut down on waste, and buy more discounted items in order to save costs. Changing consumer behvaiors Outside of food consumption, consumers have changed their purchasing behaviors with other types of goods and services. Surveying has indicated that nearly 60 percent of consumers have adjusted their shopping habits due to inflation. When holiday shopping in 2023, over 50 percent of Americans and over one third of British consumers said inflation had considerable impact on their holiday shopping. By generation, the Millenial generation has suffered the most due to rising inflation, while older generations have experienced less serious impacts.

Across the globe and in the United States, consumers tend to spend a considerable amount of money during specific festivities and seasonal events. During the winter holiday season of 2024, for instance, consumers in the United States expected to spend an average of about *** U.S. dollars per person, making it one of the top U.S. shopping events of the year. That said, the top spot went to the back-to-college season, when average per capita spending was projected to reach nearly ***** U.S. dollars. What do back-to-college shoppers buy? Getting students ready for an academic year at college can be an expensive ordeal in the United States. In addition to paying tuition and rent, it is frequently the first time young adults leave their parents’ homes, which can translate to an array of items needing to be purchased. In 2024, U.S. consumers planned to spend a total of more than ** billion U.S. dollars on back-to-college dorm and/or apartment furnishings. Only five years earlier, planned college furniture spending in the United States stood at less than ***** billion U.S. dollars in total. The impact of inflation on consumption Although consumers consistently spend more money on products and services during specific seasonal events, the wave of inflation that has hit the world in the last couple of years has thrown a wrench into many consumers’ shopping plans. For instance, increasing numbers of holiday shoppers in the United States have been looking for more sales than usual or said they would be buying less expensive gifts.

Despite the rising cost of living, half of Brazilian consumers said they would be less stressed during the 2022 holiday season, compared to the previous year. Still, almost a third of survey respondents said they would be more stressed.

In 2022, nearly half of Chilean consumers indicated that, due to the rising cost of living, their stress levels during the holiday season will increase, compared to the previous year. Only ******* of surveyed consumers in Chile indicated to be less stressed about inflation during the Christmas season 2022.

In 2024 the biggest holiday shopping challenges for online retailers were rising inflation rates and increasing costs. In third was meetng profitability goals. In contrast, only **** percent of retailers reported enhancing fulfillment efforts as a challenge.

In 2022, over half of Spanish consumers indicated that, due to the rising cost of living, their stress levels during the holiday season would increase compared to the previous year. Only one in 10 surveyed consumers in Spain indicated to be less stressed despite inflation spikes during the Christmas season 2022.

In 2024, about ** percent of French consumers taking part in a survey stated that they agreed or somewhat agreed that they had to reduce their holiday budget because of inflation. Only a small percentage of respondents disagreed.

According to a survey conducted in 2024, about ** percent of respondents planned to increase their spending by ** to ** percent this festive season. Comparatively, ** percent of consumers reported no change in spending. Despite inflation, Indians are keen to indulge in holiday shopping, with a greater interest in gifts, clothes, and home décor.

For 2023's holiday shopping season, a whopping three-quarters of consumers in Canada felt that the rising cost of goods (inflation) would have an impact on their ability to purchase holiday gifts. Less than 20 percent believed that this would not be the case.

This statistic shows the change in holiday spending behavior among U.S. consumers in 2023. That year, about ** percent of shoppers in the United States claimed they would spend more on holiday purchases than they did one year before. Many of these survey respondents have said that inflation is the reason why they would be spending more than usual.

In case prices for goods and services go up significantly in 2023, over ** percent of consumers around the world said they would shop less in general and cut down on spending as a response. A fifth of survey respondents said they would look for and purchase cheaper and better value products. Less than **** percent of those surveyed worldwide believed inflation would be unlikely to impact their habits. What does inflation look like? The world entered a new inflation crisis in 2021, driven by a confluence of factors including the COVID-19 pandemic which restricted global supply chains, and the Russian-Ukraine war which exacerbated food and energy shortages. In 2022, global inflation hit **** percent, the highest annual increase in decades. The rate of inflation is estimated to remain high in the near future, at around *** percent in 2023 and *** percent in 2024. Inflation dominated the list of most important problems facing the world according to a survey conducted in October 2023 – leading ahead of poverty and social inequality, crime and violence, and unemployment. In a global consumer trends survey, the majority of respondents said that inflation impacted them completely or a lot – for instance, ***** in ** respondents in the United States admitted they had been seriously impacted. Inflation’s impact on the holidays The end-of-year holiday season is typically regarded as a period of increased retail spending, driven by a series of major shopping events such as Black Friday and Cyber Monday, as well as the public holidays Thanksgiving and Christmas. However, inflation has put a damper on the holiday cheer, with consumers expressing their intentions to cut back spending amid the cost-of-living crisis. In 2022, a significant share of consumers in Europe said they planned to cut at least some related expenses. In fact, ** percent of respondents in the United Kingdom planned to cut all expenses related to Black Friday and Christmas.

According to a 2023 survey conducted among consumers in Australia regarding their holiday season shopping habits, around ** percent of respondents based in South Australia felt that interest rates and inflation would significantly impact their Christmas spending decisions. On the other hand, only ** percent of respondents based in Queensland felt that inflation and interest rates would have a profound affect on their expenditure over the Christmas period.

The rising cost of living and inflation rate worldwide have had a considerable impact on shopping behavior. A recent survey suggests that consumers' holiday season spending could see reductions during the busiest time in retail. In the United States, it is projected that spending cuts will reach as high as 30.6 billion U.S. dollars this holiday season. In Germany, consumers were less reluctant to cut back on their holiday season spending, with spending forecast to see a decrease of only two billion U.S. dollars.

Due to the spike in inflation that erupted in 2022, many consumers around the world and in the United States are keeping a closer eye on their spending habits. As a result, many consumers planned to cut back on their spooky spending that year. Around ** percent of surveyed Halloween shoppers in the U.S. intended to cut back spending on holiday decorations, as well as clothing and festive costumes.