Amid rising recession concerns, Southern California holiday spending is expected to decline by double digits this year. Households in the region plan to spend an average of $1,627, down 14% from last year and 21% below the 2021 peak, according to Deloitte’s “2025 Holiday Consumer Survey” released on November 3, 2025.
Retail goods such as apparel and electronics are projected to total $888, a 15% year-over-year drop and 32% below 2021 levels. Meanwhile, spending on experiences such as travel and entertainment will reach $739, down 11% year over year. Goods will make up 55% of total holiday spending, compared with 63% in 2021. Nationally, average holiday spending is $1,595, down 10% from last year.
By category, Southern California consumers plan to allocate 21% of their budgets to apparel (-10% YoY), 15% to food (-22%), 13% to toys and hobbies (+2%), 10% to electronics (-15%), 9% to wellness (-41%), and 8% to home interior products (-32%).
Deloitte said the trend reflects not just reduced budgets but also a shift toward values-based spending. Summer Taylor, managing director in Deloitte’s retail practice, noted that many households “are feeling the cost-of-living strain and are preparing for the holidays in more creative and efficient ways,” adding that personalized approaches—such as AI-driven budgeting and handcrafted or experience-based gifts—are emerging as new consumer trends.
Economic anxiety is growing: 62% of Southern California respondents expect the economy to worsen, nearly double last year’s 34%. Nationally, 57% foresee a slowdown, up from 30% in 2024.
Consumers are increasingly practical and budget-conscious. Gift cards are expected to account for 20% of all holiday spending, the largest increase among categories, up 9% year over year. To save money, 61% of respondents plan to switch brands if prices rise, 56% intend to regift items, and 51% will reuse wrapping paper or gift bags. Additionally, 40% said they would make handmade gifts, while 31% plan to give homemade food.
An industry source said that even as overall spending declines, value-driven choices are defining Southern California holiday spending, with consumers “closing their wallets but opening their hearts” to enjoy a meaningful yet frugal holiday season.
By EUNYOUNG LEE (lee.eunyoung6@koreadaily.com)
