Source: iStock | NATHANAEL KIEFER
Americans are projected to spend a record $22.9 billion to celebrate Father’s Day this year, following a slightly down year in 2022, according to research from the National Retail Federation and Prosper Insights & Analytics.
Father’s Day revenues last year came in at $20 billion, following the previous high of $20.1 billion in 2021.
About three-fourths of Americans, about the same as in recent years, plan to celebrate the holiday with an average expenditure of $196.23. That is also a new record, surpassing 2021’s $174.10. The average spend in 2019, the last year before the start of the novel coronavirus pandemic, was $138.97.
NRF says the new records are being driven primarily by an increase in consumers’ choice of gifts with a higher percentage planning to buy apparel, electronics and personal care products. More will also be spent on special outings such as brunch or dinner, product subscription boxes and events such as sports or concerts as gifts.
Greeting cards will be the most widely purchased Father’s Day gift with 61 percent planning to do so. Clothing (55 percent), a special outing (52 percent), gift cards (48 percent), a product subscription box (42 percent), personal care items (32 percent) and giving a gift to an event (29 percent) follow on the list.
The percentages of people planning to gift a product subscription box and giving a gift to an event were higher than previously recorded. NRF began tracking subscription boxes in 2019 and events as gifts in 2016.
“The big spenders this Father’s Day are consumers aged 35-44 who are expected to outspend other consumers by nearly $100,” said Phil Rist, executive vice president of strategy at Prosper. “Those aged 45-54 plan to increase their spending the most, by spending $57.04 more than they planned last year.”
Numerator’s Q2 Holiday Report found that 79 percent of those it surveyed plan to celebrate Father’s Day with food/meal (64 percent), gifts (57 percent) and alcoholic (27 percent) and non-alcoholic beverages (17 percent).
Thirty-two percent said inflation will affect their Father’s Day shopping and celebration plans.
Consumers buying gifts will try to save money by purchasing items on sale (42 percent), using coupons (23 percent) and preparing meals with “budget-friendly foods” (22 percent).