Consumers Are Spending More on Self-Care, Less on Alcohol as Holidays Approach
Beauty sales rose 10% in the past year, and wellness-based products are expanding the industry’s value opportunity, according to NielsenIQ data. Meanwhile, 25% of US households plan to cut back on alcohol
The holidays are shaping up to mean fewer cocktails and more self-care, as consumers balance celebration with tighter budgets and rising food costs.
So finds NielsenIQ, whose latest data shows shoppers are prioritizing value and personal well-being as they plan purchases, including the gifts they’re giving. The pull toward practicality doesn’t mean skipping joy; it just looks different this year, according to the consumer intelligence company.
Nearly half (48%) of consumers have self-care items on their gift lists, while 54% say they’ll treat themselves to something special.
As for what those gifts and stocking stuffers may look like, NIQ’s State of Beauty 2025 report may offer some clues. Beauty sales rose 10% in the past year, and wellness and ritual-based products expanded the industry’s value opportunity by 64%, NIQ reported. Additionally, half of global consumers now say regular self-care is more important than it was five years ago, 44% plan to take more vitamins or supplements in the next 12 months and 63% say sleep is even more important — a trend NIQ says is driving demand for pillow mists, silk pillows and sleep supplements.
If Thanksgiving is any preview ahead of the broader holiday rush, spending pullbacks will likely show up on the table as well as under the tree. Nearly nine in ten Americans plan to celebrate with a meal at home, and NIQ data shows that 25% of households plan to reduce or eliminate alcohol, opening the door for non-alcoholic spirits and adaptogenic alternatives to take center stage.
Party guests may not mind the swap, as alcohol consumption has reached an all-time low, Gallup reported in August. Gen Z and Millennial hosts are also giving the holiday a health-forward twist, using social media for recipe inspiration, experimenting with plant-based dishes and even turning to AI for meal planning.
“Our data continues to show that uncertainty is a running theme in 2025, and it’s reflected in how consumers are celebrating the holidays with a sense of tradition while fitting into their budgets and lifestyles,” NIQ Consumer Life vice president Rachel Bonsignore said. “Our goal is to equip retailers with actionable intelligence, from pricing to inventory to omnichannel experiences, that help them capture market share in what’s shaping up to be a highly competitive season.”
GLP-1s Shift Consumer Spending, Too
Looking ahead, in its Consumer Outlook: Guide to 2026, NIQ points to an even more dramatic shift, driven by the rise of anti-obesity medications (AOMs) such as Ozempic and Wegovy. More than one-third of global consumers say they’re likely to use a medication to support weight loss, and those already on AOMs are eating up to 40% fewer calories.
The effect is twofold: reduced calorie intake among AOM users is already cutting grocery spend by 6%, while spending shifts away from alcohol and ultra-processed foods in favor of protein, fiber, supplements and vitamins, as well as lifestyle and fitness activities heading into 2026.
And while saving money is certainly key, the report points out that more than half of consumers are still willing to pay more for products that feel healthier, from fresh items without preservatives to low- or no-sugar, salt, carb, fat, caffeine or alcohol options, as well as GMO-free, organic and natural products.