Australian consumers are continuing to scale back their Father’s Day spending, marking the third consecutive year of decline, according to new data released by gift retailer DadShop.
While early economic indicators suggest cautious optimism, persistent cost-of-living pressures remain the dominant influence on seasonal gift budgets. Data reviewed by DadShop, drawing on seven years of retail trends, shows that Father’s Day spending fell to an estimated $820 million in 2024, down from $860 million in 2023 and $872 million in 2022. This represents a 6% drop since the post-lockdown high of 2022.
“The cost-of-living crisis has had a very real impact on how Australians approach Father’s Day gifting,” said Benjamin Teo, Director of DadShop. “People are still celebrating, but budgets are clearly tighter.”
A Roy Morgan study found that even in 2022, 42% of Australians cited financial concerns as a key factor influencing their Father’s Day purchases. Since then, discretionary spending has been further constrained. Average spending per buyer declined from $113 in 2022 to $101 in 2024, despite participation remaining steady at more than 8 million gift-givers last year.
Popular gift categories such as alcohol, food, clothing, books, and gift cards continue to perform well. Spending habits also vary by region. In 2023, Tasmanians and Queenslanders led in per capita spending, while Victoria and South Australia recorded the lowest figures.
Early shopping has emerged as a notable trend. Around 800,000 Australians reportedly spent $75 million during mid-year sales in 2024, highlighting a growing preference for pre-planned, cost-saving purchases.
Looking ahead, there are signs of a slow recovery. The Consumer Confidence Index reached 87.5 in January 2025, its highest level in three years. Discretionary spending also rose, with a March index reading of 101.6 and a 4% year-on-year increase in retail sales. The Reserve Bank of Australia began cutting interest rates in early 2025, and GDP growth is projected at 2.1% for the year.
Inflation is easing, and sentiment toward major purchases has improved. Analysts at ANZ believe this could lead to a gradual return to discretionary spending, especially in categories associated with gift-giving. However, any recovery is expected to be modest.
Retailers are being advised to adapt by offering competitive pricing and value-oriented promotions. Early sales and clear messaging around affordability will likely remain important in capturing cautious consumer interest during the Father’s Day season.
