Around 4.7 million Australians are expected to spend a combined $720 million on gifts for dads, grandads, partners and father-figures this year, down $100 million from 2024, as cost-of-living pressures continue to impact discretionary spending.
According to research from the Australian Retailers Association (ARA), in partnership with Roy Morgan, 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% compared to 2024.
Popular gift choices this year include alcohol and food, clothing and footwear, grooming products, and tech items, along with experiences such as dinners or trips. Around 28% of Australians plan to celebrate over a meal at home (19%) in a restaurant or café (9%).
ARA Chief Executive Officer, 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. This year's Father's Day projections indicate around 20% of Australians expect to buy gifts compared to 36% 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% say they'll spend more than they did in 2024.
"Older Australians, in particular, continue to make Father's Day a priority, while younger groups are tightening their spending, likely because they 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," said Mr Rodwell.
Around 8% of Australians (1.9 million people) plan on purchasing a Father's Day gift for a person other than their birth father this year.
Father's Day 2025 - Most Popular Gifts
Of those planning to buy a gift (%):
- Alcohol / Food - 17%
- Clothing / Shoes / Sleepwear - 14%
- Toiletries / Grooming items - 7%
- Voucher / Gift card - 7%
- Tech items - 5%
- Car or bike gear / accessories - 4%
- Experiences (dinner, trip, outing) - 4%
- Homewares - 4%
- Sporting / Camping / Fishing gear - 4%
