What Holiday Shopping Trends Will We See for the 2024 Season?

We know what we can expect from a typical holiday shopping season – in-store and online deals, trendy “must-have” gifts and Christmas music everywhere – but what new shopping trends can retailers and consumers expect this year?

Here, Montclair experts in marketing and economics weigh in on the trends we may see in the 2024 holiday shopping season.

How will election hot topics impact retail?

• Tariffs: Post-election, shoppers may wonder whether President-elect Donald Trump’s plan to tax imported goods will impact prices. “Companies have rushed to front load imports for next year before a round of tariffs may come about,” says Luis Portes, Professor of Economics. “This could put price pressures now, as orders pile up.”
• Supply chain and port workers strike: Supply chain issues may also arise given concerns that the port workers strike is not fully resolved, “This may resurge in January as negotiations on automation take place,” Portes says. Jin-A Choi, Assistant Professor of Advertising and Director of Data Analytics for the Joetta Di Bella and Fred C. Sautter III Center for Strategic Communication at Montclair, analyzed recent online and social media data for topics relating to holiday shopping. Echoing Portes, Choi says data showed the potential strikes are anticipated to impact holiday gift prices and cause shortages, among larger supply chain disruptions. “The economic impact and challenge of delivering goods to households could negatively affect consumers’ shopping experiences this holiday season.”
• Inflation: According to Professor of Marketing Patrali Chatterjee, retail analysts are reporting consumers are seeing less inflation, which is giving them more confidence in spending. Nevertheless, says Associate Professor of Marketing Manveer Mann, inflation will impact consumer inclination to spend, particularly lower-income consumers who are more likely to pull back and look for discounts and cheaper alternatives.

Despite concerns about the economy and inflation, Choi says social media data shows a joyful holiday shopping frenzy is expected, with joy being the most prominent sentiment in the social media data set.

‘Slow shopping’ makes for mindful shopping

More consumers are taking their time before making purchases. According to Chatterjee, “slow shopping” emphasizes taking the time to think through each purchase as a need vs. want and making more mindful and level-headed buying decisions. The trend, especially popular with Gen Z, gives shoppers a chance to move past that initial rush of emotion that provokes a purchase, such as “FOMO” over missing a good deal.

Of course, a major part of holiday shopping does involve taking advantage of deals and discounts, which leads to at least one impulse purchase during the season, Chatterjee adds.

‘Wicked’ marketing is a win

If 2023 was the year of all things “Barbie” pink, this is the year for the musical film “Wicked” and everything Glinda pink and Elphaba green. Chatterjee says Universal’s marketing strategy is a win for them and any retail partners this holiday.

AI continues to power shopping habits, marketing strategies

Retailers have developed AI-powered shopping tools to more acutely influence consumer preferences, while shoppers use AI to find deals and personalized brand recommendations, Chatterjee says. “AI tools are influencing consumer behavior and boosting e-commerce growth.”

With the anticipation of increased spending on online shopping, Choi says retail strategies are centered around leveraging AI technology to enhance personalized experiences, optimize reach and sales, and boost consumer trust. “AI-driven insights are increasingly becoming essential for maximizing the seasonal ROI,” Choi says. “With changes in consumer data tracking (i.e. opt-in) accurate algorithms and models are more important than ever.”

Mann agrees that AI can serve as an effective gift guide and drive purchase decisions. One good example is Etsy’s Gift Mode, Mann adds.

TikTok is a major player in driving holiday sales

TikTok is not just a fun social media video platform, anymore – and it hasn’t been for some time. TikTok Shop has been generating momentum since it launched in 2023, and is especially popular for Gen Z, who are more likely to buy goods promoted by influencers and content creators, Chatterjee says.

Change in alcohol consumption during the holidays

Noticing less alcohol consumption at parties and gatherings? Chatterjee says wine and spirit consumption has declined post-Covid, and the trends are expected to continue for the foreseeable future. “Brewers are responding by creating and promoting lower or no-alcohol options and expanding into new categories like hard seltzers and ranch water.”

Mann also cites reporters of younger consumers’ inclination to abstain from alcohol. “We may continue to see a growth in non-alcoholic drinks, as the popularity has been steadily increasing,” says Mann. “Additionally, legalization of cannabis may also have some impact on alcohol consumption as some consumers may reduce alcohol consumption due to access to cannabis products.”

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