IGD report reveals Christmas confidence boost

New research from IGD (Institute of Grocery Distribution) reveals that Christmas 2025 was a season of contrasts as many shoppers found ways to indulge, despite the period being marked by cautious spending.

Growing confidence fails to drive volume

The IGD ShopperVista report, ‘Unwrapping Christmas 2025’, reveals that confidence rallied from November to December, delivering a three-point uplift in shopper sentiment - the second-largest increase in 13 years.

Although trading results showed record sales[1], volume was flat, which is reflected in 40% of shoppers feeling they bought less than a year before. This was particularly true of low-income post-families, with nearly half (45%) claiming to have bought less overall compared to Christmas 2024.

Cost worries create selective indulgence

This festive boost came even as 47% of shoppers admitted they were worried about the cost of Christmas, up from 43% in 2024. Loyalty schemes played a critical role, with half of all shoppers using loyalty points to offset costs, and 41% choosing retailers based on loyalty benefits.

Claimed spending patterns show a clear shift toward selective indulgence. Premium own label products were particularly popular in treat categories such as mince pies bought by 40% of shoppers, desserts by 35% and biscuits by 30%. Alcohol and confectionery saw the sharpest cutbacks overall, yet these were also the categories most likely to see trade-ups, with 69% of chocolate tins purchased as branded or premium private label.

Socials influence as offline retail wins

The Christmas success stories reflect the mixed picture. Nearly half of shoppers (45%) chose multiple small shops over one big basket trip, continuing the trend toward little-and-often shopping.

Social trends also shaped spending as younger shoppers drove a rise in gatherings, with 42% of 18–24-year-olds enjoying more celebrations than last year.

Value and loyalty remain paramount

Rosie Young, Insight Analyst at IGD, commented:

"Christmas 2025 showed us that even in a cost-conscious climate, the desire to celebrate remains strong as most spent freely. Shoppers were savvy, however, using loyalty schemes and promotions to manage budgets without compromising on quality.

“Value and loyalty will remain critical in 2026, alongside opportunities for premiumisation in treats and mission-based shopping. Retailers and suppliers that combine strong value cues with inspiration for smaller, in-home occasions will be best placed to succeed.”

The full findings from IGD’s ‘Unwrapping Christmas 2025’ report are available at the IGD website to subscribers of its ShopperVista service. ShopperVista provides food and drink industry businesses with up-to-date shopper data and insights to support effective strategic decision-making. To enquire about a subscription, visit: https://www.igd.com/subscription-interest-commercial.

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Notes to editors:

1.        All content is owned by IGD. If you use or refer to any content in this press release, please credit IGD.

2.       Follow us on LinkedIn: https://www.linkedin.com/company/igd/

3.       IGD brings together stakeholders from across the food system, fostering action across on critical challenges across a broad cross section of forums. Through evidence-based insights, credible research, and thought leadership, IGD guides businesses to make informed decisions that not only benefit their operations but also contribute to the collective good of society.  As a charity with a long-standing commitment to the food and grocery industry, IGD does not advocate for any single commercial interest but works towards fostering alignment on shared goals that can have a positive, lasting impact on both the industry and the communities it serves. Its neutrality and impartiality are key to its role in facilitating collaboration, whether through policy development or addressing emerging risks and opportunities. By staying connected to the changing dynamics of the world, IGD ensures that the food system remains robust and sustainable, creating tangible benefits for businesses, consumers and society.

 

[1] https://www.kantar.com/uki/inspiration/fmcg/2026-wp-promo-premium-own-label-and-no-alcohol-options-inside-britains-13-8-bn-xmas-grocery-shop