The festive season is now underway, with calendars packed with Christmas parties, festive meet-ups, and long-overdue reunions. Traditionally, pubs, bars, and restaurants have played host to the lion’s share of these occasions, but consumers may have other ideas this year.
Data from Barclays shows two in five (38%) expect that they’ll drink less than usual this Christmas, rising to 48% for 18-34s, and 27% of this group say they’re doing so to cut costs.
On the topic of value, 37% say they have noticed alcoholic drinks being impacted by ‘drinkflation’, where drinks become smaller or contain less alcohol, yet cost the same or more than they used to. When this question was asked at the end of 2023, just 22% agreed, Barclays said.
‘Shrinkflation’ is also on consumers’ minds. Seven in 10 (70%) have noticed festive products, such as chocolate tubs and biscuit tins, being impacted by ‘shrinkflation’, while 57% have noticed festive ‘skimpflation’ taking effect (where product or ingredient quality declines without a corresponding fall in price).
‘Shrinkflation’ has emerged as shoppers’ number one bug-bear, named by 44%, while 41% listed hard-to-cancel subscriptions and 38% named drip pricing, where brands add extra and hidden charges at the checkout.
Over one in four (27%) chose dynamic or surge pricing, where prices increase based on demand, while 39% say they support the Government’s plan to ban the resale of event tickets for a profit.
A dip in spending
Data from Barclays shows consumer uncertainty led to both essential and discretionary spending declining in November.
Overall card spending fell by -1.1% year-on-year – the greatest fall recorded since February 2021, when the UK was still grappling with lockdown restrictions and card spending dropped by 9.5%. This decline is also considerably lower than the latest CPIH inflation rate of 3.8%.
Essential spending’s fall, which came in at -2.9%, marks seven consecutive months of decline, while non-essential spending fell for the first time since July 2024, down -0.3%.
“Even with a boost from Black Friday, consumer spending remained muted as we moved through the final quarter of the year. 2025 has been defined by this economic deceleration,” said Jack Meaning, Chief UK Economist at Barclays.
“The question remains as to whether easing interest rates and falling inflation can offset this trend and spur a rebound in consumer spending, or whether tightening fiscal policy and continued uncertainty will see the malaise continue in 2026.”
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