This Father’s Day, fewer Australians are buying gifts but those who do are going all out. Research from the Australian Retailers Association (ARA) and Roy Morgan reveals around 4.7 million Aussies will spend a combined $720 million on dads, grandads, partners and father figures this year.

That’s down $100 million from 2024, as cost-of-living pressures continue to bite, but there’s one upside: people are spending more per person, with an average gift budget of $145, a whopping 44 per cent jump on last year.

Quality over quantity

So what’s going on? ARA CEO Chris Rodwell says families are feeling the pinch, but those who can afford it are determined to make the day count.

“There’s no hiding the fact we’re seeing a drop in gift giving this year,” Rodwell explains. “This year’s Father’s Day projections indicate around 20 per cent of Australians expect to buy gifts compared to 36 per cent 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 per cent say they’ll spend more than they did in 2024.”

Older Aussies are driving much of the spending, while younger generations who are busy juggling mortgages, rent and rising bills, are tightening their belts. Rodwell says it’s another sign of how unevenly cost-of-living pressures are hitting households, and he’s calling on the Reserve Bank to consider further interest rate cuts as retail heads into its peak season.

What Aussies are buying Dad in 2025

When it comes to gift choices, the classics still reign supreme. Alcohol and food top the list (17 per cent), followed by clothing and footwear (14 per cent). Grooming products (7 per cent), vouchers (7 per cent) and tech gadgets (5 per cent) also make the cut.

Some shoppers are opting for experiences, with 4 per cent planning dinners or trips, while others are sticking to practical options like homewares, car accessories, or sporting gear.

Nearly a third of Australians will eschew gifts and celebrate over a meal instead, 19 per cent at home and 9 per cent at a restaurant or café.

Celebrations beyond birth fathers

Interestingly, around 1.9 million Australians (8 per cent) are buying for someone other than their birth father, whether that’s a partner, stepdad, grandad or another father figure who’s made an impact.

It shows that while wallets might be under pressure, the sentiment behind Father’s Day is alive and well.

So what’s the small biz takeaway?

The ARA warns retailers can expect fewer transactions overall, but suggest not to underestimate the customers who are shopping. They’re ready to spend bigger on premium items, personalised gifts, and experiences that feel meaningful.

That means small business owners who can tap into quality over quantity, whether through curated gift bundles, luxe upgrades, or memorable experiences, stand to benefit most.

Retailers need to also consider the growing market beyond dads themselves. Marketing to stepdads, partners and father figures could help capture extra sales in a market where sentiment counts just as much as spend.

Father’s Day 2025 falls on Sunday, 7 September. So if you haven’t stocked the shelves, sorted your promos or pushed your campaigns, now’s the time.

While fewer Aussies may be hitting the shops, the ones who do are clearly determined to give Dad (or someone special) a day worth remembering.

Want more? Get our newsletter delivered straight to your inbox!  Follow Business Builders on Facebook , X , Instagram , and LinkedIn.