A new report from global consumer insights firm Pureprofile suggests Australians are set to spend more on Christmas gifts and festive food and drink in 2024, with gift budgets expected to increase by $80 and food and drink budgets are to rise $100 during the festive season.

The average gift budget for 2024 is projected to be $468, up from $388 in 2023. Similarly, food and drink budgets are expected to average $406, a significant increase from the previous year's $306.

The report, now in its sixth year, is based on the responses of over 4,300 panel members from Australia, New Zealand, the UK, the USA, and Singapore.

Despite these increased spending intentions, 67% of Australians are looking to save on Christmas expenses this year, with 45% expecting to take advantage of Black Friday and Cyber Monday deals.

The report also reveals that 60% of Australians are feeling emotionally positive about the festive season as inflationary pressure eases. However, only 7% of Australians plan to use AI for holiday planning this year.

When it comes to wishlists, gift cards (46%) and money (41%) top the list for Australians. The majority of Aussie shoppers (70%) plan to start shopping in November or earlier. While 59% of Aussies are embracing the in-store experience this year, 41% still prefer online shopping.

Interestingly, price-consciousness remains high among Australians, with 80% ranking it higher than quality (68%) in their Christmas purchasing decisions. The report also indicates that 20% of working Australians anticipate rising costs will shrink their year’s workplace Christmas party. However, 73% of working Australians are looking forward to their workplaces closing over the Christmas period.

In terms of festive celebrations, 55% of Australians prefer to spend Christmas enjoying a meal with family at home. While 41% of Australians are expecting to travel for Christmas 2024, only 8% plan to travel internationally.

CEO of Pureprofile, Martin Filz, said: "This is the first time in five years that we’ve seen a loosening of the Australian purse strings and a noticeable uplift in holiday spirit. This shift is remarkable and suggests we may be emerging from the long shadow of cost-of-living concerns. However, a cautious sentiment persists, with shoppers actively seeking savings and bargains. Retailers should take note that Australians are inclined to shop in-store, making it essential to offer more substantial in-store discounts to drive foot traffic."