Young Canadians will be driving holiday spending this year, according to PwC’s 2024 Canadian Holiday Outlook Survey.
The poll says Gen Z and Millennials plan to spend an average of $2,296 and $2,233, respectively, spending increases of 55% and 51% compared to 2023.
Meanwhile, Gen X and Baby Boomers are expected to spend an average of $1,766 and $1,412, respectively, a decrease of 11% and 9% compared to 2023.
This year, Gen Zs and Millennials, on average, plan to outspend Gen X and Baby Boomers by over 40%.
On average, Canadians say they’ll spend $1,853 on gifts, travel and entertainment this holiday season, a 13% increase over last year.
Respondents from the Prairies and B.C. expect to spend the most ($2,188 and $2,126, respectively,) while Quebecers appear to be the most frugal, spending an average of $1,474.
“Retailers across Canada are poised to benefit from a clear spending surge from younger Canadians this holiday season, despite the affordability challenges that make headlines every day,” Elisa Swern, national retail and consumer leader at PwC Canada, said in a statement.
“If they adapt their business strategies to align with these shoppers’ values and buying preferences, such as prioritizing quality and sustainability, and embracing digital payment platforms, retailers are poised to capitalize on the spending plans of these younger shoppers.”
While many Canadians expect to spend more this year, they don’t necessarily have the cash to do so with 31% saying they would dip into their savings.
Consumers in Ontario and Quebec are most likely to use retail financing options (19% and 18% respectively), and 20% of Ontarians said they would take on more debt.
Gen Z is leading the charge in using digital payment methods like PayPal (44% compared to 31% overall), Apple Pay and Android Pay (35% compared to 14%), and buy now, pay later platforms (11% compared to 5%).
The poll also shows Gen Z shoppers are more likely than their older counterparts to complete their holiday shopping early with 21% planning to have it done before Thanksgiving, compared to just 11% of shoppers overall.
PwC’s 2024 Canadian Holiday Outlook Survey polled 1,000 Canadian consumers, ensuring a representative sample across demographics like age, gender, income, and region.