Americans are ready to spend a fortune on their loved ones this Valentine’s Day. Consumers are planning to spend $25.9 billion on Valentine’s Day this year, up from $23.9 billion in 2022, according to a study by the National Retail Federation.
This is the second highest amount Americans have spent on Valentine’s Day since the organization began tracking it in 2004, while the highest was in 2020, according to NRF data.
Out of those surveyed, 52% said they plan to celebrate the holiday and will spend an average of $192.80 on their loved ones.
“Valentine’s Day is a special occasion to shop for the people we care most about,” National Retail Federation President and CEO Matthew Shay said of the findings, per Forbes. “This year, as consumers embrace spending on friends and loved ones, retailers are ready to help customers celebrate Valentine’s Day with memorable gifts at affordable prices.”
Millennials will spend the most
The group planning to spend the most this year are older millennials, who are between the ages of 35 and 44. This group will spend an average of $335.71 on gifts and other Valentine’s items, which is $142.91 more than the average consumer, reports federation data.
The group spending the second most this Valentine’s Day are consumers between 25 and 34, who plan to spend an average of $238 on their loved ones for the holiday.
What are Americans buying for Valentine’s Day?
Some of the classic gifts are American’s favorites.
Candies and sweets historically are the popular gifts, according to Statista, accounting for 44% of purchases. Next up was greeting cards (33%), flowers (32%), dinner (29%), wine (14%) and gift cards (13%). Jewelry only accounted for 10% of the gifts that Americans purchase.
More recent data from the National Retail Federation has similar results:
- Candy: 57%.
- Greeting cards: 40%.
- Flowers: 37%.
- An evening out: 32%.
- Jewelry: 21%.
- Gift cards: 20%.
- Clothing: 19%.
Why are Americans spending so much on Valentine’s Day this year?
It’s unclear, but age might have something to do with it.
Millennials seem to spend more on the romantic holiday than older generations, CNBC reported. Since millennials are more likely to spend money on the holiday, it could be that they bring up the total more than previous generations have.
Maybe the ending of the pandemic has something to do with it as well. According to Fox Business, consumers may still have money from pandemic stimulus checks and employment is still high even as prices are rising. David Ragland, CEO of IRC Wealth, called Americans’ willingness to spend money for love “a perfect example of how our emotions really control our spending.”