Valentine’s Day Spending To Hit $26 Billion, As ‘Experience Gifts’ Grow In Popularity

As consumer preferences and behaviors evolve, so do centuries-old traditions. And while romantic spouses and friends still plan to celebrate Valentine’s Day, retailers are starting to see a shift in how this day is being celebrated: red roses and heart-shaped chocolate might not be at the top of consumers’ priorities. While still widely popular, could Valentine’s Day need a rebrand?

U.S. consumers alone are expected to spend $25.8 billion on Valentine’s Day this year, according to a survey released by the National Retail Federation and Prosper Insights & Analytics. Overall, 53% of consumers will celebrate and indulge on this holiday, with individuals aged 25-34 being more involved than any other age group. The holiday is still widely relevant, yet different dynamics are starting to slowly reshape it, and retailers are paying attention.

Beyond The Classic Heart-Shaped Bouquet And Chocolates

While flowers, candy and greeting cards still top the list of main gifts, younger generations are shifting the way Valentine’s Day is being celebrated, looking beyond traditional gifts. NRF President and CEO Matthew Shay said that “with consumers prioritizing their spouse or significant other this year, retailers expect to see a shift in spending for certain gifting categories.” Indeed, new spending records are expected for jewelry ($6.4 billion), clothing ($3 billion) and an evening out ($4.9 billion).

“Classic gifts like candles, jewelry, pajamas and perfume are certainly popular,” Shopify President Harley Finkelstein also shared with the NRF. “But we’re also seeing shoppers opt for non-traditional gifts focused on experiences, like recreating your favorite cocktail at home with a new barware set, planning for an upcoming adventure with travel accessories, or elevating couples’ game night with table shuffleboard.” This trend demonstrates a rising interest in celebrating this holiday differently, bringing in a more original, experiential approach to the event.

Retailers are adapting by promoting their assortments to cater to the ones who want to celebrate by dining out or at home, with special menus, offers and experiences. Grocery chains have become particularly active when it comes to targeting customers for this holiday, enticing them to buy more than just flowers. British supermarket chains Tesco and M&S have become references when it comes to selling indulgent, romantic meal deals. Both have designed specific dine-in menus and meals to choose from for the occasion, sold for £18 and £25 respectively. These options include fine dining-like ready-to-eat main courses, indulgent desserts and a bottle of wine or prosecco, giving consumers wishing to stay home or being on a budget the opportunity to treat themselves in a convenient, pleasant way.

A More Inclusive Celebration Of Love For Valentine’s

Another trend worth noting in how Valentine’s Day is being celebrated is the rise in a new consumer segment, turning the holiday into one that goes beyond celebrating couples only. The holiday is no longer reserved for those involved in a romantic relationship, but is increasingly being celebrated by those wanting to honor their friendships or themselves. Galentine’s Day has indeed become widely popular, with the term originating from the TV show Parks & Recreation, in an episode aired in 2011 in which one of the main characters introduces Galentine’s Day as a concept to celebrate friendship with her friends. It is now a cultural phenomenon that friends take part in, almost as a counter-Valentine’s Day event.

“We are seeing some of the mainstream corporate companies starting to embrace a wider descriptor of what Valentine's Day actually means,” shared Joanna Feeley, founder and CEO of UK-based trend-forecasting agency Trend Bible, with BBC.com. “Valentine's almost needs a rebrand, but it's not dead.” In addition to celebrating friendships, consumers are also using this holiday to treat themselves, with self-care on the rise and often considered a luxurious treat.

Younger demographics are leading these shifts, with 28% of GenZ likely to spend Valentine’s Day celebrating with friends or family (versus 15% for millennials), as shown in a survey conducted by Ypulse. This is pushing brands to innovate in terms of marketing to cater to a wider audience. Even jewelry brands, which traditionally target couples, are expanding their communication to address all types of love. This year, Pandora unveiled its new brand campaign “Be Love” just a few weeks before Valentine’s Day, featuring new global brand ambassadors sisters and artists Chloe and Halle Bailey. Aiming to go beyond romantic love only, the campaign aims to promote all types of love, starting with self-love. A message that certainly resonates with a broader audience these days, while unlocking a wider customer audience for the jewelry brand.

These shifts represent an interesting opportunity for brands across a wider range of categories to leverage Valentine’s Day and promote their products, whether it relates to wellness, food and beverage, beauty and more. Understanding how younger generations interact with each other during this traditional holiday and celebrate love is crucial to developing relevant campaigns that address a wider audience wishing to celebrate this day of love in a broader way. Traditional gift categories will be competing with more original, unique ones, pushing retailers to innovate and think creatively to stay relevant. In other words, flowers and chocolate might soon need to make space for non-alcoholic spritzers and self-care beauty packages.