ile 64 per cent are set to spend a similar amount – compared to the previous year. Average spend is forecasted to be up 6.3 per cent to $118 per person, and the demographic most likely to spend on Valentine’s Day is expected to be 18-34 year olds – followed by 35-49 year old’s – at $215 million and $140 million respectively. However, a survey of 1,000 Australian consumers by e-commerce brand Moonpig and market data platform Antenna, revealed that one in five would spend less this Valentines Day than last year, with 39 per cent choosing not to buy products ahead of the event. About 48 per cent of those surveyed attributed this to cost of living pressures, which are set to become more challenging ahead of the recent 0.25 per cent cash rate increase – while 58 per cent said that they don’t need to prove their love through expensive gifts.  Dr Louise Grimmer, a senior lecturer in marketing and associate head of research performance at the University of Tasmania, told Inside Retail that Valentine’s Day spending this year is a victim of a perfect storm. She said that spending would be limited by high, and climbing, interest rates which are affecting mortgage holders, the continued growth in household expenses, a hangover from Christmas spending as credit card and other bills hit, and back to school expenses. She added that very low wage growth in Australia is compounding the problem. “All of these factors are having a dampening effect on spending for 14 February, which is reflected in both the predictions for reduced spending, and anecdotally when speaking with consumers,” Dr Grimmer said. “It’s not only goods and services that will be impacted by reduced spending this year. The hospitality industry will also suffer, as couples forgo eating out, or perhaps spend less than usual.” Grimmer predicted that Valentine’s Day will be one of the weakest performing retail holidays for the year. While spending for Mother’s and Father’s Day, as well as Easter and Christmas, might be impacted later in the year, it likely won’t be as affected by external constraints as Valentine’s Day. “I’m certainly seeing far fewer Valentine’s Day product displays and offerings in the stores I’ve visited,” she said. “I think that reflects the broader trend of reduced spending this year.” Budget friendly offers Moonpig – which sells a range of Valentine’s Day related products, such as flowers, chocolates, alcohol and balloons – has focused on affordability in its Valentine’s Day product range this year. Australian lead at Moonpig Meaghan Jamieson believes that luxury, high end products are more at-risk of experiencing a drop in consumer demand this year. This is consistent with the brand’s research, which showed that Australians are predicted to spend about $62 for the holiday. “We have seen a more budget-conscious attitude to spending this year, with more affordable options being preferred,” Jamieson said. “Think cards [or] small customisable gifts like mugs; something that can be tailored to make a gift more meaningful, without breaking the piggy bank.” With Valentine’s Day now being celebrated by people outside of just traditional, heterosexual relationships, Jamieson emphasised the brand’s product range and personalised offering as a way to “share the love far and wide.”  She added that budget consciousness would potentially become a trend as the year progresses, and that Moonpig would continue to expand its offering to meet changing customer demands. “We’re always prepared for what is forecasted for the year ahead, and we are proud that we have always been a more budget-friendly option for those who still wish to celebrate their personal occasions and meaningful moments,” she said. Looking to Easter According to ARA and Roy Morgan research, the supply of flowers has been affected by weather events and supply chain disruptions but this is expected to have lessened this year.  Flowers, as well as sensory indulgences, are likely to be the go to gifts for consumers. This was corroborated by Dr Grimmer, who anticipated that flowers, chocolates and jewellery would remain as popular Valentine’s Day gifts this year. However, with Valentine’s Day spending potentially softening this year, she said many retailers would order fewer items for Valentine’s Day, instead choosing to concentrate on Easter sales. “Hopefully [Easter] will remain strong in 2023 despite pressures on Australian households,” she said.