Introduction

The holiday season is a pivotal time for brands, marked by a surge in consumer spending. Understanding the distinct purchasing behaviors of various generations—generation Z, millennials, generation X, and baby boomers—is essential for businesses aiming to tailor their marketing strategies effectively.

Each generation exhibits unique preferences and habits influenced by technological advancements, economic conditions, and cultural trends. By analyzing these generational differences, businesses can develop targeted approaches that resonate with each group's specific needs and expectations, ultimately enhancing customer engagement and driving sales during this festive season.

Generation Z (Born 1997–2012)

Gen Z consumers are expected to spend an average of approximately €1,650 during the holiday season, reflecting a 37% increase from the previous year. Fashion and beauty remain top categories on Gen Z's holiday wishlists, with social media like TikTok, instagram being the true source of their inspiration.

They value technological integration in shopping experiences, with 72% emphasizing the importance of self-checkout technology, 70% favoring mobile payments, and 68% preferring brand apps during their holiday shopping. Additionally, 40% of Gen Z consumers consider celebrity and influencer endorsements important in their purchasing decisions, higher than the 28% average across all consumers

Millennials (Born 1981–1996)

Millennial consumers plan to spend an average of €2,118 during the holiday season, reflecting a 16% increase compared to 2023. Notably, 47% of millennials include electronics, tickets, apparels, and classes in their holiday shopping lists, allocating 20% of their total holiday budget to entertainment.

Contrary to popular belief, Millennials are leading the shift to online shopping, with 28% planning to shop exclusively online, ahead of Gen Z at 24%. Additionally, 42% favor purpose-driven brands, and 65% prefer businesses that show understanding and empathy in their advertising. For brands, authenticity and meaningful engagement are key to winning Millennial loyalty.

Generation X (Born 1965–1980)

Generation X shoppers are trimming their holiday budgets, cutting spending by 9% to an average of €1,383. Practical and value-conscious, they favor gift cards as their top choice, offering convenience and flexibility. While e-commerce dominates, 49% still prefer in-store shopping for a hands-on experience to ensure quality and value.

Unlike younger generations, Gen X takes a deliberate approach to spending, prioritizing practical considerations. Shipping costs are a major factor for 66%, while 59% focus on delivery speed and ease. Retailers appealing to Gen X must balance affordability, convenience, and efficient logistics while maintaining the reliability of traditional shopping.

Baby Boomers (Born 1946–1964)

Baby Boomers are also approaching this holiday season with a more cautious mindset, planning to reduce their spending by 2%, averaging €1,074. Despite the common belief that older generations favor traditional shopping, Baby Boomers are increasingly embracing e-commerce, with 90% having made at least one online holiday purchase in the past year. Still, they value personalized service and hands-on experiences, which are often best delivered through in-store shopping.

And, similar to Generation X, Baby Boomers gravitate toward purchasing gift cards, but also, household items, while remaining price-conscious. Known for their strong brand loyalty, 80% of baby Boomers prefer to stick with trusted brands more than younger generations. However, their loyalty is not unconditional—it is built on trust and hinges on consistent, high-quality experiences.

Keytake aways

1. Digital Integration and Omnichannel Preferences

• Generational Shifts in Shopping: Gen Z and Millennials are driving the digital shopping trend, fueled by mobile payments, apps, and social media-driven purchases, while Gen X and Baby Boomers are embracing e-commerce for its convenience—though continue to prioritize personalized experience in-store service.
  
  

• Key Brand Opportunity: Retailers must create seamless omnichannel experiences that integrate user-friendly technology (self-checkout, mobile apps) while maintaining strong in-store experiences that accustom older generations.

2. Product-Conscious Behavior Across Generations

• Generational Spending Habits: Gen X and Baby Boomers prioritize affordability and practical purchases, favoring gift cards for their flexibility and value, while Gen Z and Millennials, though inclined to spend more on premium products like clothing and entertainment, remain keen on finding discounts and promotions.
  
  

• Key Brand Opportunity: Highlight promotions and competitive pricing while offering practical gifting solutions like gift cards for older generations. For younger shoppers, blend value with aspirational product messaging, and brand reputation

3. Social Media Influence and Brand Authenticity

• Generational Influences on Purchasing Decisions: Gen Z relies on platforms like TikTok and Instagram, with influencer endorsements shaping their purchases. Millennials value brands with authenticity, empathy, and purpose-driven messaging. Gen X and Baby Boomers, less swayed by influencers, turn to reviews, product demos, and trusted content on YouTube and Facebook for buying decisions.
  
  

• Key Brand Opportunity: Invest in authentic storytelling and influencer collaborations for younger audiences while ensuring reliable, high-quality content and reviews for older generations.

4. Generational Loyalty and Trust

• Generational Brand Expectations While Baby Boomers show the strongest brand loyalty, driven by consistent quality and experiences, Gen X prioritizes reliability but remains price-sensitive, seeking practical value. In contrast, Millennials and Gen Z are less loyal, favoring brands that align with their values, like sustainability and purpose-driven goals, while also delivering a seamless digital experience.
  
  

• Key Brand Opportunity: Build trust with Baby Boomers and Gen X through consistency and reliability through optimal customer experience, while fostering loyalty among Millennials and Gen Z through purpose-driven initiatives and digital engagement.

Conclusion

Generational differences in holiday purchasing behavior offer key opportunities for businesses to optimize marketing, product, and sales strategies. Younger generations, like Gen Z and Millennials, prioritize digital experiences, social media influence, and purpose-driven brands, while Gen X and Baby Boomers value practicality, affordability, and trusted experiences. To succeed, businesses must deliver seamless omnichannel solutions, highlight value-driven products, and balance authentic storytelling with personalized service to engage each generation effectively and drive holiday sales.