Thanksgiving Costs Remain High as Inflation Lingers

Thanksgiving, a cornerstone of American festivities renowned for its elaborate feasts, is facing financial pressures as grocery inflation persists. According to data, prices of Thanksgiving staples in 2024 remain significantly elevated compared to pre-pandemic levels. Despite a reduction from last year, the cost of Thanksgiving essentials remains high, highlighting ongoing inflationary trends affecting households across the nation.

As reported by Datasembly, the cost of a basic Thanksgiving meal has escalated by 42% since 2019. Items such as turkey, which saw a significant rise last year, continue to be offered at promotional prices by major retailers like Walmart and Kroger to entice customers. This year, Thanksgiving staples are marginally cheaper, with a reported decrease of 2.67% compared to 2023, although overall inflation rates experienced an increase for the first time in over a decade.

Despite the heavier financial burden, national surveys indicate that 75% of Americans intend to partake in Thanksgiving celebrations this year, although 16% remain undecided. The tradition retains its cultural significance, with about 80% of those hosting emphasizing its importance to their heritage and practices. Nevertheless, economic concerns loom large. Nearly 44% of hosts express anxiety over the costs involved, with 30% expecting to invite fewer guests as a financial strategy.

Generational disparities also manifest, particularly impacting Generation Z. This demographic is the most apprehensive about the financial implications, with 61% of Gen Z hosts expressing concerns and 49% reporting plans to cut down guest lists. Many Gen Z households, likely less experienced in hosting, cite financial constraints and prioritize other costs over extravagant gatherings.

Many hosts are exploring ways to reduce expenses beyond trimming guest numbers. A notable 30% are opting for less elaborate meals, featuring more affordable dishes. Meanwhile, 47% of hosts intend to request contributions from guests to mitigate costs, and a staggering 92% of attendees plan on bringing items, averaging a contribution worth over $47.

The financial strain has left some pivoting towards potluck-style events, fostering a sense of community among contributors. Yet, an estimated 9% of surveyed Americans have already decided against participating in a Thanksgiving gathering, citing the high cost of food (40%) and general financial worries (35%), alongside work commitments on the holiday (26%).

Retailers are responsive to these challenges, with some offering discounted meal packages keeping costs within a range of $5–$7 per person. Whether these discounts will carry through to future holiday seasons remains uncertain as suppliers face pressure to participate in these cost-saving measures.

Looking ahead, the Deloitte food frugality index (FFI), tracking consumer economizing behaviors, suggests a potential shift in consumer spending habits. Recent data indicates a decrease in the index, reflecting a possible increase in consumer confidence. Should this trend endure, future Thanksgiving gatherings may once again see fuller tables.