The Christmas ads have been released and festive food lines are on the shelves: we’re slap-bang in the middle of the most wonderful time of the year.
However, the 2025 Christmas season may not all be merry and bright. Our annual ’12 Trends of Christmas’ research has looked at a number of factors shaping this year’s seasonal period, and financial pressures remain front of mind for many households across the UK.
A combination of international (Trump’s tariffs, ongoing conflicts) and domestic (Reeves’ tax rises, sluggish growth) factors has meant this year, only 1% of Brits have moved into our ‘Healthy Households’ (21%) cohort in the UK: people who have restabilised their finances after the recent cost of living crunch. Meanwhile, 2% more have joined the ‘Recovering Residences’ (48%) group, who are still having difficulty making their household finances stretch as we come into the Christmas season.
While some 13% of Brits expect to spend more on Christmas food this year, for the 31% who say they are struggling, this year looks worse than 2024. For them, spend on food is expected to be down by 6%, while they’ll be spending 28% less on general Christmas frivolity.
So yes, there are more opportunities for brands to capitalise on the increased prosperity of certain consumer groups this year, but increasing fragmentation means that those who were struggling in 2024 are struggling even more now. This emphasises the importance of retailer loyalty schemes that reward more strategic Christmas planning. Supermarkets can expect increased demand.
Meeting millennial needs
Notable demographic shifts in recent years mean millennials are the largest generation in the UK, overtaking baby boomers. They are becoming the ‘typical family’ at Christmas – parents with young kids. Millennials are a diverse bunch, with different attitudes towards family life, food and ethics.
‘Meeting the needs of millennials’ is the second key trend of note. Reflecting them in product repertoires and advertising will be increasingly important for Christmas 2025. When it comes to hosting, millennials are more open to ‘twists’ on traditional recipes, meat alternatives, or eco-conscious options, and are keener to provide unique experiences for guests (75% vs 60%). They also have a stronger preference for social and experiential presents (25% vs 15%).
Finally, millennials are also more likely to be ethnically diverse, members of the LGBTQ+ community and living in rented accommodation. A combination of all these factors needs to be considered for successful festive strategies to engage with this dominant grouping.
Last but not least, the major development of the less healthy foods (LHF) regulations is already impacting Christmas planning. Beyond the legislation itself, many Brits are already cutting back on unhealthy foods (57%) and are generally supportive of more regulation (49%). These behaviours have filtered into their Christmas habits. Some four in 10 Brits will be trying to ‘have a healthier Christmas’ this year, our third trend, rising to six in 10 among millennials.
Christmas is often associated with over-indulgence, but indulgence doesn’t have to be a dirty word. Brands may benefit by leaning into healthier portrayals of Christmas with healthy food and drink options, encouraging healthier festive moments (ie breakfasts) and by highlighting activities that can be healthy, fun and promote mental wellbeing across the whole season.
This festive season may be fragmented, but opportunity still shines bright. A smart media mix, powered by deep audience insight, will help retailers and brands to connect with the right shoppers at the right time – driving loyalty, engagement, fuelling the Christmas spirit, and, potentially, sales that sparkle.
Luke Hand is the insight director at Mail Metro Media
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