EU Christmas spending surges in 2025 as inflation nudges prices up and regulators tighten toy safety standards.
As Christmas approaches and gift shopping is well underway, Germany is set to become the largest spender in the European Union during the festive season, according to data platform Statista.
In 2025, retail spending during the Christmas season is expected to reach around €85.24 billion in Germany.
France follows with an estimate of €71.65 billion, and Italy with more than €43 billion.
In wider Europe, the UK tops the chart, with a PwC survey projecting a 3.5% increase from 2024, despite a slow start to festive trading.
However, this year's gifts might be more expensive as the eurozone's annual inflation was estimated to be 2.2% in November 2025, according to Eurostat, up from 2.1% the month before.
"Holiday spending is expected to reflect a cautious mindset, however, marked by price sensitivity and a preference for affordable indulgences," Mastercard Economics Institute stated in its recent forecast.
What are the most popular gifts across the EU?
Beauty, fashion, and electronics are among the most popular categories of gifts purchased during this holiday season, according to the economics institute.
In the last quarter of 2024, people in the Czech Republic splurged the most on cosmetics, while Poles preferred jewellery and watches.
Meanwhile, Spaniards invested the most in second-hand finds, while the Italians invested in home appliances.
Czechs also spent the most on games and toys among all Europeans.
Last year, cosmetics and toys were the products most frequently notified for safety issues in the EU, with chemical ingredients identified as the primary cause of risk in almost half of the alerts.
Toy Industries of Europe (TIE), a trade association for the European toy industry, also researched 70 toys from the first pages of search results on seven major online platforms delivering to Belgium and France.
Some 96% were non-compliant to EU safety requirements, and 86% had serious safety issues, such as small parts that pose choking risks, powerful magnets, and easy access to batteries.
In October this year, the European Council approved new rules to regulate the safety of toys, introducing a digital passport to better trace toys sold online and banning chemical substances harmful to children.