Stars, Stripes, and Savings: 4th of July Spending Trends for American Consumers
With the Fourth of July right around the corner, let’s dive into an analysis of consumer spending habits from last year, and see how they compare against how Americans are planning to celebrate this year. From fireworks and barbecues to considering the rising costs of inflation, we’ll explore the ways in which people across the country are opening their wallets, or holding back, to celebrate Independence Day. Whether you’re a data-driven consumer, curious observer, or a business looking to understand the market, this analysis will provide valuable insights into Fourth of July spending trends.
According to the National Retail Federation (NRF), the average adult spent $93.34 on food for July 4th 2022, and this average food spending per person increased 11.0% year-over-year (YoY) from July 4th 2022 to 2023 (Capital One Research). This research from Capital One also shows that Americans were 3.57% more likely to celebrate in 2023 than they were in 2022, which may account for the fact in 2023 American consumers spent an estimated $13.5 billion on food and beverage ($9.5 billion on food and $4.02 billion on alcohol).
However, with most consumers recently tightening their budgets due to rising costs, it’s no surprise that only 73% of American consumers plan to celebrate the holiday this year, down 16.1% from 2023 (Capital One Research). In fact, according to Lending Tree, almost 1 in 5 (18%) Americans say they regret overspending on prior July Fourth celebrations.
Don’t worry, there are still ways to celebrate the holiday this year, even if you are planning to cut back on spending due to inflation. Many consumers, Gen Zers, millennials, and all, plan to take advantage of special Fourth of July deals and sales. Last year, despite concerns about rising inflation, consumers still found creative ways to celebrate. Many of these strategies remain relevant and can be applied this year as well.
Last year:
- 31% planned more budget-friendly snacks and meals due to inflation
- 27% used coupons to shop for the holiday
- 20% shopped at dollar and discount store
- 16% opted for generic or store brand purchases and 11% purchased smaller items
From all of us here at Vested, we hope this Independence Day you find ways to celebrate that are meaningful to you, and for more insights into consumer spending habits for holidays, market trends, developing financial news, and more, subscribe now to VestED!
