Winning the Holiday Season: Consumer Behavior Insights

Every holiday season reveals something new about how people think, feel, and spend, but 2025 stands out as a year of quiet transformation. After several years of post-pandemic recovery, consumers are rebalancing their priorities, redefining what value means, and choosing experiences that matter over excess. According to PwC’s 2025 Holiday Outlook survey, average holiday spending is expected to decline by 5% compared to 2024, marking the first notable dip since 2020. Yet the story behind this number is not one of retreat, but of intention.

Consumers are becoming more deliberate. They are searching for balance between cost and meaning, adjusting where they spend without abandoning the traditions that give the season purpose. For food and beverage brands, this shift opens a space to connect not through price alone, but through authenticity, cultural resonance, and shared emotion.

Generational Behavior and the Search for Meaning

Consumer behavior in 2025 is shaped by generation, but also by mindset. PwC’s data shows a clear divide: Gen Z plans to reduce its holiday budget by 23%, while baby boomers plan to spend 5% more, and millennials remain nearly flat year over year. Each generation is navigating a distinct financial reality, and those realities shape what “value” means to them.

Gen Z, still early in their careers and facing higher living costs, is rethinking how and why they shop. 63% are opting for resale or upcycled products, while one in three factor sustainability or wellness into their holiday choices. Their purchases signal self-expression and social awareness more than luxury. A beverage brand could tap into this mindset by launching a limited seasonal line made with ethically sourced ingredients and recyclable packaging, promoted through social storytelling that blends flavor, wellness, and purpose. A holiday campaign that ties every purchase to a local food-donation initiative would speak directly to Gen Z’s desire to align enjoyment with impact.

By contrast, boomers are leaning into nostalgia and family, spending more to preserve rituals they associate with togetherness. Millennials, as we explored in “Millennials at 40: Values, Behaviors, and What It Means for Brands,” continue to blend financial caution with a desire for meaningful indulgence. They are loyal to brands that simplify their routines and deliver consistent quality.

Across all generations, the common thread is intention. Whether through wellness-driven purchases, comfort foods, or reliable staples, shoppers are expressing values through their baskets. Understanding those values is no longer optional for marketers, it is central to building trust.

The Psychology of Value and the New Holiday Mindset

Although overall spending is slightly lower this year, consumers are not disengaging but recalibrating. PwC reports that 78% of shoppers are seeking less expensive alternatives, while 65% expect deeper post-holiday discounts. Yet despite cost sensitivity, 72% still plan to share a home-cooked meal with loved ones. This duality captures the essence of 2025: moderation without sacrifice.

Gift cards and consumables illustrate this balance perfectly. More than half of consumers plan to give gift cards, while 26% list consumables among their top gift categories. Rather than extravagant presents, shoppers are focusing on practical gifts that carry emotional meaning. Food sits at the intersection of thrift and generosity, offering comfort and connection without excess. Shared meals, handmade treats, or edible gifts allow people to express affection while staying within their new spending boundaries.

A premium pantry or snack brand can capture this sentiment through thoughtful presentation and storytelling. A holiday kit featuring small-batch sauces, holiday spices, or regional snacks, packaged for easy gifting and paired with recipe cards that encourage sharing. Such products meet consumers’ emotional and economic needs simultaneously, reinforcing that value and warmth can coexist. This approach also redefines loyalty: instead of pledging allegiance to one brand, shoppers curate combinations that reflect both pragmatism and aspiration. The challenge for marketers is to understand the subtle triggers behind those decisions and design experiences that nurture emotional attachment long after the holidays end.

Technology and the Flexible Path to Purchase

If value defines the “why” behind purchases, technology defines the “how.” According to PwC, 43% of Gen Z now use social media as often as search engines to discover gift ideas. This shift toward visual discovery transforms how people encounter brands. Content has become commerce, and the line between entertainment and shopping continues to blur.

Consumers are also diversifying how they shop. Fifty-one percent plan to buy online, while 53% will shop in stores. This near parity means channel preference is no longer fixed. The same person may research a product on Instagram, compare prices via mobile, and buy in a physical store to ensure immediate gratification. Convenience, control, and trust now drive every decision.

Even payment methods reflect behavioral flexibility. Credit card use has climbed to 52%, cash to 48%, and gift card use to 27%. Shoppers are blending digital and traditional payment options to manage spending while maintaining a sense of control.

For food and beverage brands, this blended behavior opens the door to create omnichannel experiences that feel both personal and seasonal. For example, a sparkling beverage company introducing a limited-edition holiday flavor and using digital storytelling to build anticipation weeks before launch. A short video could follow the journey from ingredients to celebration moments, while an in-store display invites shoppers to scan a QR code that unlocks a curated holiday playlist or cocktail guide featuring the new product. The campaign creates a multi-sensory experience that connects digital curiosity with physical enjoyment.

When studied through behavioral research, these interactions reveal where emotion meets function. Observing how people move between channels, what triggers them to click, visit, or buy, helps brands design journeys that remove friction and heighten satisfaction.

Tradition, Food, and the Meaning of Connection

Despite economic caution, the holiday table remains sacred. PwC notes that 45% of consumers expect to spend more on groceries for celebrations, even as other categories decline. Food has emerged as both a necessity and an emotional anchor, representing stability and shared joy.

While apparel or electronics may compete for attention through novelty, consumables connect through ritual. They are tied to family memories, cultural heritage, and sensory pleasure. In multicultural households, especially Latino families, cooking is an act of identity. Recipes are passed down, flavors are personalized, and shared meals reinforce belonging.

A brand that understands this can move beyond transaction to participation. For instance, a frozen foods company could collaborate with local chefs to recreate traditional holiday dishes using accessible ingredients, offering bilingual content that connects flavor with story. Such initiatives do more than sell products, they strengthen emotional equity by aligning with cultural authenticity.

This blend of practicality and meaning defines 2025’s consumer mindset. Shoppers are reimagining celebrations. The brands that succeed will be those that honor tradition while adapting to modern behavior, connecting through emotion as much as through function.

Understanding the Behavior Behind the Basket

The 2025 holiday season is less about how much people spend and more about how consciously they spend it. Behind every purchase lies a story of adaptation: consumers making choices that reflect who they are and what they value most.

For brands, the challenge is not only to keep up with changing preferences, but to anticipate them. This requires a holistic understanding of motivation, culture, and perception.

At DataSense, our research integrates behavioral and cultural insight to help companies in the food and beverage industry see beyond transactions. By combining segmentation, AI-powered analytics, and qualitative methodologies, we help brands decode what truly drives consumers and translate that knowledge into lasting loyalty.

Let's talk about how DataSense turns consumer behavior insights into strategies that grow your brand with purpose and precision.

Sources:

Holiday Outlook 2025 - PwC, 2025.