Father’s Day spending to reach record $24 billion

Father’s Day spending is set to reach a record-breaking 24 billion dollars this year, according to data from the National Retail Federation and Prosper Insights & Analytics. This number is up from 22.4 billion dollars last year and is more than the former record of 22.9 billion dollars in 2023.

“Americans are embracing meaningful traditions and holidays, and this Father’s Day, spending on gifts and other holiday items is expected to reach record levels,” said Katherine Cullen, NRF Vice President of Industry and Consumer Insights, in a statement. 

“As consumers look to recognize the father figures in their lives, retailers are prepared with gift ideas, special deals, and convenient shopping options to help customers find the right gifts.”

Nearly half of consumers (48 percent) intend to purchase a Father’s Day gift for a father or stepfather, with others shopping for husbands (25 percent), sons (12 percent), brothers (9 percent), friends (8 percent), or grandfathers (6 percent).

Much like in previous years, the majority, 76 percent, plan to mark the occasion, spending an average of 199.38 dollars per person, up from 189.81 dollars last year. Consumers aged 35 to 44 remain the highest spenders, averaging 278.90 dollars, an increase of 27 dollars year over year.

When selecting Father’s Day gifts, shoppers prioritize items that feel unique (46 percent) or create lasting memories (37 percent). The most popular categories include greeting cards (58 percent), apparel (55 percent), special experiences (53 percent), and gift cards (50 percent).

“As consumers prioritize Father’s Day gifts that are unique or create special memories, categories such as special outings and personal care items have seen an increase in popularity this year,” said Phil Rist, Prosper Executive Vice President, in a statement. “A special outing offers an opportunity to create new memories and celebrate together, while a personal care item allows dad to feel pampered.”

Subscription boxes and gifts that offer ongoing value or memorable moments continue to gain traction. 43 percent of consumers plan to give a subscription box this year, up notably from 34 percent in 2019 when the NRF first tracked this trend. Experience-based gifts have also seen steady growth, with 30 percent of shoppers opting for them, compared to 23 percent in 2019.

Online remains the leading retail channel, with 41 percent planning to shop digitally. Department stores follow at 35 percent, then discount retailers (23 percent), specialty stores (22 percent), and local or small businesses (19 percent).