Gen Z hot to purchase luxury brands as gifts for the holidays

A growing number of younger consumers are planning to buy luxury gifts this holiday season, with the share of Gen Z respondents planning to do so rising to 72% from 57% last year and millennials jumping to 61% from 50%.

So finds a new holiday report from Deloitte, which surveyed 4,000 US consumers from August 26 to September 10.

Deloitte found that the two cohorts will together account for 50% of holiday spending this year, up from 41% last year. Deloitte defines Gen Z as ages 18–29 and millennials as ages 30–45.

Versace topped Gen Z’s luxury-brand rankings, followed by Chanel, Louis Vuitton, Dior, and Gucci, according to a 2025 consumer sentiment survey by AlixPartners. For millennials, Louis Vuitton topped the list, followed by Hermès, Dior, Gucci, and Chanel.

Overall, Deloitte projects household holiday spending to increase to $1,654 this year, up 4% YoY. That breaks down even better for retail goods, expected to rise 10% YoY to $988, while spending will drop 4% for holiday activities to a figure that’s more Satan than Santa: $666.

Gas prices and the economy generally seem to have dampened consumers’ enthusiasm for holiday travel and events, planned spending on which is down for all household incomes, topped by households earning $100,000–$199,000, down 15% YoY, and sub-$50,000 households, down 12% YoY.

On the flip side, these trends could be a boon for supermarkets and home decor purveyors: All income brackets below $200,000 plan to up their spending on hosting at home, topped by $50,000–$99,000 households, who plan to increase spending 29% YoY on hosting-related purchases, and sub-$50,000 households, which plan to up spending by 15%.