Report: Americans Are Reducing Their Thanksgiving Celebrations This Year

A recent Deloitte report reveals that while grocery inflation has stabilized, food prices remain significantly higher compared to pre-pandemic levels. The cost of key Thanksgiving items has soared since January 2020:

• A 16-pound turkey costs 31% more than before the pandemic.
• Pumpkin pie mix and pie shells are up by 34% and 39%, respectively.
• Stuffing is 41% more expensive, and dinner rolls have increased by 54%.

Despite these price hikes, 75% of Americans still plan to participate in Thanksgiving celebrations. For many, Thanksgiving remains a vital part of their personal tradition or culture. However, the higher costs are affecting how people celebrate.

Cost Concerns Impacting Hosts

• 44% of hosts are worried about the cost of the event.
• 30% of hosts plan to reduce the size of their guest list due to costs, with Gen Z hosts (ages 18–24) particularly affected:
  • 61% of Gen Z hosts expressed concerns about the cost.
  • 49% of them plan to cut down their guest lists.
• Younger generations, like Gen Z, also tend to have less experience hosting, which may influence their decisions.

Cost-Saving Measures

• 30% of respondents plan to serve less expensive dishes or have a simpler meal.
• 47% of hosts intend to ask guests to contribute, and 92% of guests are prepared to bring something, spending an average of $47 on their contribution.
• The trend toward potluck-style gatherings may foster a stronger sense of community but also means some people will miss out:
  • 9% of surveyed individuals are not attending any Thanksgiving gathering this year. Of those, the main reasons are:
    • 40% cite the high cost of food.
    • 35% mention broader financial concerns.
    • 26% are working during the holiday.

Retailers’ Response to Price Concerns

Some retailers are offering discounted holiday meal packages, aiming to keep costs low, around $5–7 per person, in response to growing price sensitivity. It’s unclear whether these discounts will extend into 2025 or if suppliers will bear the brunt of the price cuts.

Consumer Frugality

The Deloitte Food Frugality Index (FFI) highlights ongoing consumer frugality:

• 29% are buying mostly store brands.
• 24% are choosing lower-cost ingredients and meats.
• 35% are reducing food waste at home.
• 25% are only buying essentials.

Despite these economizing behaviors, the FFI index has reached its lowest point since its launch, suggesting that consumer confidence may be improving, and spending could loosen in the future.

Outlook for 2025

While consumers remain cautious, the FFI’s decline signals that they might be starting to loosen their purse strings, which could mean more flexibility in spending by next Thanksgiving. However, it will depend on how food prices evolve and how much consumers continue to prioritize traditional gatherings despite rising costs.