Around 4.7 million Australians are expected to spend a combined $720 million on gifts for dads, grandads, partners and father-figures this year.
This is according to research from the Australian Retailers Association (ARA), in partnership with Roy Morgan, which further confirmed their spending prediction is down $100 million from 2024, as cost-of-living pressures continue to impact discretionary spending.
While overall participation in the retail event has dropped this year, many are set to spend more per person, with an average of $145 planned per gift-buyer – a jump of nearly 44 per cent compared to 2024.
Around 14 per cent of shoppers are planning to buy gifts in apparel, shoes or sleepwear, while the top category of choice is alcohol or food at 17 per cent. Other key categories include toiletries or grooming (7 per cent), voucher or gift card (7 per cent), tech items (5 per cent) and car or bike gear (4 per cent).
ARA CEO Chris Rodwell said while fewer people are participating, the customers who are spending are committed to making it special.
“There’s no hiding the fact we’re seeing a drop in gift giving this year,” Rodwell said. “This year’s Father’s Day projections indicate around 20 per cent of Australians expect to buy gifts compared to 36 per cent in 2024. This tells us how real the ongoing cost-of-living pressures are for many households.
“At the same time, families who can are choosing quality over quantity this year when it comes to celebrating Dad. A quarter of gift-buyers plan to spend more than $200, and 26 per cent say they’ll spend more than they did in 2024.
Older Australians in particular are set to continue making Father’s Day a priority, while younger groups are tightening their wallets. Rodwell said this is likely because younger people face the greatest mortgage and budget pressures.
“That’s why, as we head into retail’s peak season, we are calling on the Reserve Bank of Australia to remain open to further interest rate cuts,” Rodwell said.
Around 8 per cent of Australians (1.9 million people) plan on purchasing a Father’s Day gift for a person other than their birth father this year.
Around 28 per cent of Australians plan to celebrate over a meal at home (19 per cent) or in a restaurant or café (9 per cent).