According to Mastercard Economics Institute, overall holiday spending is projected to increase by 2.9%* year-over-year (excluding automobile sales) during the months of November and December across Europe. This anticipated growth reflects the resilience of European consumers as they navigate a complex economic landscape, balancing aspirations with pragmatic approaches to spending.

Natalia Lechmanova, Chief Economist Europe at Mastercard Economics Institute says: "European consumers enter the 2024 holiday season with higher confidence than last year yet remain mindful in their spending.  When spending, shoppers are prioritizing key gifting categories such as fashion, beauty, and electronics, with heightened sensitivity to price—evidenced by a strong focus on Black Friday deals to maximize value.”

Key trends to watch in 2024 include: 

• Season’s Spending: Holiday spending is projected to increase by 2.9% year-over-year (excluding automobile sales) from November to December, according to SpendingPulse insights on in-store and online retail sales across all payment methods.  

• Making The Most Of Black Friday Sales: Clothing, Jewlery & Accessories, and Electronics are at top of consumer wish lists this year for Black Friday promotions happening on November 29th. Anticipated clothing increases are most prevalent in Hungary (+5.9% YoY), Spain (+4.5% YoY), Czech Republic (+4.5% YoY), while spend on Electronics is set to see the strongest growth in the UK (+5.5% YoY), Germany (+4.5% YoY), Czech Republic (+3.2% YoY).

• Gifting Categories: Beauty, fashion and electronics are also popular gifting categories poised to grow further during this holiday season. From Nov 1st to Dec 24th 2024, spending in the Electronics sector is expected to increase most in the UK (+4.7% YoY), Germany (+3.9%), Hungary (+1.8% YoY) and Netherlands (+1.5% YoY).

• Consumer Confidence: Improved sentiment regarding personal finances has led to a rise in consumer confidence, particularly in southern, central, and eastern European countries that have experienced stronger economic growth, where confidence has returned to long-term trends.

• Trending Travel Destinations: This year’s popular holiday destinations include sunny spots in Morocco, Portugal, and Spain,  with more distant beach destinations (Abu Dhabi and Thailand) also gaining traction, as well as more affordable winter locations like Hungary and Poland

*The projections are made according to Mastercard Economics Institute’s comprehensive spend data set – including Mastercard SpendingPulse which measures in-store and online retail sales across all forms of payment, including cash and cheque, and is not adjusted for inflation. SpendingPulse looks at nine European markets, including: Czech Republic, France, Germany, Hungary, Italy, Netherlands, Poland, Spain, United Kingdom.