Aussie Christmas spending to hit $23.9b in 2021

This festive season, people plan to fork out on the usual suspects –gifts, booze and travel – but some are worried supply chain issues could prompt panic buying.

Aussies are expected to spend over $1000 on average for Christmas. Picture: NCA NewsWire/David Crosling

Aussies are set to shell out a whopping $23.9 billion on Christmas this year, with the average person expected to spend $1232, according to new research.

Gifts are the top of the spending list, with Aussies expected to fork out $374 each on presents – however this is down from $391 in 2020, comparison website Finder found.

Women, on average, will spend around 39 per cent more on presents than men, splurging $434 compared to $313.

However, supply chain disruptions have nearly one-third of Australians concerned their purchases will not arrive on time, a survey by software provider Emarsys found.

Additionally, two-fifths wished for more time to think about selecting and purchasing presents this holiday season, with 14 per cent worried they will end up panic buying.

Shoppers are seen in Pitt Street Mall in Sydney. Picture: NCA NewsWire/Flavio Brancaleone

Australian Retail Association CEO Paul Zahra has warned shoppers they should steel themselves for heftier price tags as supply chain pressures – including shipping bottlenecks and international flight restrictions – boost expenses and limit the amount of product arriving in the country, forcing businesses to pump up prices.

Adding to the bill is a rolling staff shortage that is putting pressure on bosses to lift employees’ wages.

However, Sarah Megginson, senior editor of money at Finder, said this year’s Christmas is different to most, with millions of Australians coming out of lockdowns with stashed savings and pent up demand.

“We’re keen to see our families and loved ones so travelling is going to be high on the agenda,” she said.

“Aussies have started their shopping earlier this year thanks to irresistible Black Friday/Cyber Monday deals which will help to alleviate supply chain setbacks and shipping delays.”

Christmas shopping in the Melbourne Bourke St Mall last year. Picture: NCA NewsWire/ David Crosling

As freedoms increase heading into December, Australians plan on spending $269 each on travel over the holiday season.

Finder’s research shows some Australians will also be having a boozy Christmas, spending $107 per person on alcohol over the silly season – a collective $2 billion across Australia.

Consumers are expected to spend $308 each on food, and $174 on eating/drinking out.

Crowds gather around the Myer Christmas windows in the Bourke Street Mall in central Melbourne. Picture: NCA NewsWire/Andrew Henshaw

But Ms Megginson urged consumers to avoid going into debt.

“Christmas can be costly, so it’s important that households prepare accordingly and don’t blow their budgets,” she said.

“Try to offset higher spending with savings in other areas, such as switching car insurance for a better deal or refinancing to a cheaper home loan to reduce monthly repayments. You may even be able to get a new home loan with a cashback offer to give your savings a boost.

“If you aren’t cashed up this Christmas, families could replace gifts with things like acts of service or experiences, like a picnic at the beach.”

Originally published as Aussie Christmas spending to hit $23.9b in 2021