A striking generational divide is emerging in German consumer behavior as the holiday season approaches, according to a new survey released this week by FOM Hochschule. The research reveals a planned average expenditure of €502 per person on Christmas gifts, but the figures belie significant discrepancies based on age and gender, raising questions about the broader economic pressures impacting different demographics.
The survey highlights a particularly stark contrast between generations. Generation X, aged 45 to 60, intends to allocate €598 for gifts, demonstrating a considerably higher spending capacity compared to Generation Z (18 to 28), who plan to spend just €270. This disparity suggests a growing financial strain on younger individuals, potentially linked to concerns regarding job security, rising living costs and student debt. The planned expenditures of Generation Z reflect a more cautious approach shaped by economic anxieties, a trend commentators see mirroring broader social and political shifts toward financial prudence amongst young adults.
Gender also plays a significant role in spending habits, with men planning to spend €590 on average, while women anticipate spending €416. This difference, while not wholly unexpected, underscores persistent inequalities in income and financial decision-making.
The study’s scientific director, Oliver Gansser, pointed to the influence of economic conditions and the life cycle stage, noting, “Older generations generally have more financial flexibility, while Generation Z is noticeably prioritizing a more restricted budget”. Gansser’s observation coincides with growing concerns about intergenerational wealth disparities and the challenges facing younger Germans in securing their financial future.
The rise of online retail continues its dominance, with 67% of respondents intending to purchase gifts online, alongside 51% opting for brick-and-mortar stores. This digital preference is particularly pronounced among younger generations, reflecting evolving consumer habits and the convenience offered by e-commerce platforms.
Despite the digital landscape, traditional gift choices remain popular. Books lead the way, with 64% of respondents selecting them as a likely purchase. Experiences, including travel and concert tickets, are also highly desirable (51%). Food and drink gifts remain a solid choice (50%), followed by toys and gaming (47%). However, a decline in the popularity of gift cards (27%), cash gifts (25%) and smartphones (16%) suggests a shift in gifting trends, potentially reflecting concerns about overconsumption and a search for more meaningful presents.
The survey also revealed that partners, children and parents remain the primary recipients of Christmas gifts, with more than a quarter of respondents planning to treat themselves. This last point, while seemingly innocuous, highlights a growing trend of self-gifting among consumers aiming to compensate for perceived shortcomings or simply indulging in a moment of economic reprieve amid ongoing financial pressures.
