Afterpay’s Festive Forecast Reveals Early Holiday Shopping Patterns for 2024 Season

Annual holiday survey uncovers the commerce trends that are resonating most with today’s budget-conscious consumers, including nearly 1 in 3 considering using BNPL this season. 

As the holiday season approaches, new research commissioned by Afterpay and conducted by Morning Consult highlights evolving consumer behaviors and preferences, signaling a shift in how and when shoppers plan to tackle their holiday purchases. This year, a significant portion of consumers are gearing up for early shopping, driven by inflation, financial management, and a desire to avoid the stress of last-minute purchases. 

This season, the survey reveals nearly one-third of shoppers are more stressed than they were last year when it comes to their holiday shopping. Inflation is a primary source of this stress, cited by 60% of shoppers. Generationally, Gen Zers are less likely to feel financial stress (30%) compared to Millennial parents (43%), and Gen X and Boomer Grandparents (41%). To combat financial stress, shoppers are looking into various strategies, including spending less (40%), starting to shop early (38%), creating a budget (37%), and saving up in advance (36%). 

More than half of shoppers are planning to complete the bulk of their holiday shopping well before the traditional shopping season starts, with 10% starting as early as summer (July, August) and 41% planning to shop in early fall (September, October). Shoppers cite various reasons for this trend: 

“To avoid holiday crowds in the stores. To spread out the financial drain over several months instead of one.”Female, Boomer

“The prices of everything are already skyrocketing, and I want to be able to get the things I already planned on buying, so I’m not gonna wait till they get even higher during the holidays.”Male, Millennial

“We have decided to shop as early as possible to give us time to find the best deal.”Male, Gen X

“I want to start shopping earlier for many reasons. Mostly to get great discounts on gifts. Then I will be less stressed out over shopping with chaotic and rude people around me!”Female, Millennial

Mindful shoppers are turning to the flexibility and convenience Buy Now, Pay Later (BNPL) affords, with nearly 1 in 3 shoppers (30%) saying they are considering using BNPL for their holiday shopping this year. When analyzing Afterpay considerers, nearly a quarter (23%) cited it helps them stretch their holiday budget when compared to the average shopper. 

Of those who plan to use BNPL this year, 57% plan to lean into BNPL even more this upcoming season. Millennial parents and Gen Zers are more likely to consider BNPL essential for their holiday shopping, with 41% of Gen Zers being likely to consider BNPL this year and 42% of Millennial parents emphasizing its importance to them.

More Key Festive Forecast highlights include: 

• In-season shoppers: Despite a majority of folks who want to finish their holiday shopping early, 34% of shoppers plan to focus their shopping efforts in late fall (November), while 15% admit they will be down to the wire, shopping in early to mid-December. 
• Giving season: The most popular gifting categories are clothing, shoes, and jewelry (60%). Followed by toys (35%), electronics (34%), health and beauty products (33%), and video games (31%).
• Parents vs. Grandparents: For parents, toys are the leading choice at 62%, followed by clothing, shoes, and jewelry (55%), video games (49%), and electronics (38%). Meanwhile, grandparents are likely to focus on gifting toys (60%), clothing, shoes, and jewelry (46%) for their grandchildren. 
• The season for experiences: Dining experiences and event tickets are topping the list for experiential gifts. Millennials, in particular, are more likely than the average shopper to consider vacation or travel as potential gifts. 
• Holiday travels: About a quarter of shoppers plan to make travel-related purchases for holidays, with Millennial parents leading the charge at 35%, followed by Gen Zers (33%) and Millennials at large (30%).  
• A case for free shipping: Nearly half of all shoppers say they would try to only purchase from brands with free shipping to reduce the burden of shipping costs. 
• Digital shopping takes different forms: Online shoppers are likely to make purchases via store/brand websites (69%), apps (60%), ecommerce platforms (47%), and social media (18%). 

As holiday shopping trends continue to evolve, these findings offer valuable insights into consumer behavior, spending patterns, and the growing reliance on flexible payment options like BNPL. Retailers and brands that adapt to these trends are likely to resonate with today’s early-shopping consumers.

For more holiday insights unwrapped, visit our report here. 

Methodology:

Morning Consult’s Afterpay Holiday Survey (July 2024) was conducted between July 24th – 27th, 2024 among n2,226 Adults in the U.S. All interviews were conducted online. Results from the full survey have a margin of error of +/- 2% and the margin of error among subgroups is greater. All subgroups highlighted in reporting have a readable base size.