New research from the Institute of Grocery Distribution (IGD) has revealed that Christmas 2025 was a season of differing outcomes, as many shoppers found ways to indulge despite the period being marked by cautious spending.
IGD’s new report, Unwrapping Christmas 2025, reveals confidence rallied from November to December, delivering a three-point uplift in shopper sentiment - the second-largest in 13 years.
Although trading results showed record sales, volume was flat, reflected by the 40% of shoppers who felt they bought less than the year before.
This was particularly true of lower income families, with nearly half of these (45%) claiming to have bought less overall when compared to Christmas 2024.
This festive boost came even as 47% of shoppers polled by the IGD admitted they were worried about the cost of Christmas - up from 43% in 2024.
Key for the convenience sector, the data shows nearly half of shoppers (45%) chose multiple small shops over one big trip. Social trends also shaped spending, as younger shoppers drove a rise in gatherings, with 42% of 18- to 24-year-olds enjoying more celebrations than in 2024.
Loyalty schemes played a critical role, with half of shoppers using loyalty points to offset costs, and 41% choosing retailers based on their loyalty benefits.
The claimed spending patterns reported to the IGD show a clear shift toward selective indulgence. Premium own label products were particularly popular in treat categories such as mince pies, desserts and biscuits.
Alcohol and confectionery saw the sharpest cutbacks - yet these were also the categories most likely to see trade-ups, with 69% of chocolate tins purchased as branded or premium private label.
Rosie Young, Insight Analyst at IGD, said: “Christmas 2025 showed us that even in a cost-conscious climate, the desire to celebrate remains strong as most spent freely. Shoppers were savvy, however, using loyalty schemes and promotions to manage budgets without compromising on quality.
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