The average price of a Christmas dinner for 4 people has increased again this year to £32.57, up £1.99 vs last year (+6.5%) which is 2.5 times higher than total food and drink inflation. 39% of us are claiming to feel stressed (YouGov. 4th Dec 2024) and consumer confidence remains low at -18 (GFK Consumer Confidence Barometer Nov 2024), so how are people approaching the festive season this year...?
Stepping into Christmas early
Take home sales are +2.5% over the 4 weeks to 1st December 2024 (Kantar Worldpanel Online) as shoppers try to spread the cost over November and December. With ambient seasonal products appearing on our shelves as early as August in some retailers, shoppers can get started early. 8% of consumers had already purchased a Christmas pudding by the end of November.
Trade up to a point
Whilst trade up is custom at Christmas, Levercliff consumer research unveiled how shoppers are selective where they trade up. Whilst treating, indulgence and novelty are key drivers to trading up at Christmas, so too are social expectations and the pressure to impress guests. However shoppers are less likely to trade up in categories where the quality difference is too subtle and therefore not deemed worth the price premium. This is where brands and manufacturers need to be confident of their point of difference and communicate it effectively.
(Don’t) drink and be merry
22% of adults in the UK claim not to drink alcohol up from 20% last year (YouGov Dec 2024) and three out of four adults who drink alcohol state that they have been actively moderating their alcohol consumption across 2024 (KAM Insights Low & No Alcohol 2024 Report). The top driver for cutting back in almost half of consumers was to save money.
As for the rest of us, champagne, wine and spirits saw the biggest levels of buying on deal over the last 4 weeks to 1st of December, as savvy shoppers seek the best offers of their favourite tipple (Kantar 10th December 2024).
Box-ing Day
Iceland is helping shoppers out this year with the launch of Christmas dinner in a box, priced at £25 to serve 4 people, which is almost £8 under the average cost of a Christmas dinner. Not just appealing to customer on a budget, this novel concept may also hold appeal with air-fryer enthusiasts, with a complete cook time of 90 minutes.
Christmas Offer-ings
December is the peak time for deals, and the pricing battle has already commenced with 30% of sales going through on promotion in November, the highest since Christmas last year. Tesco and Sainsbury’s have changed the face of promotions over the last couple of years through loyalty cards pricing – a tactic soon replicated across other retailers with price cut offers. The top mults continue to win the race with a combined market share of 44% (Kantar 10th December 2024). However, observed in-store this year is the noticeable lack of exciting brand displays and seasonal shippers. Gone are the days of impressive, disruptive off-feature displays with flashing LED lights, in its place a sea of uniform purple price offers.
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Written by Nia Salisbury, Category Director
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