Ahead of the 2025 holiday rush, ChatGPT, a cutting-edge AI model, was asked to predict key trends in the holiday shopping season. Its predictions reveal valuable insights into what products will dominate gift lists, the evolving shopping behaviors of consumers, and how payment methods will shift in response to changing economic conditions. By understanding these insights, retailers can prepare for a busy season while consumers can get ahead of their gift lists. Below are the top five trends ChatGPT expects to shape the 2025 holiday shopping season.
Overview of 2025 Holiday Shopping Trends
| Trend | Key Insights | Impact |
|---|---|---|
| Electronics | AI-enabled laptops, smart devices, and tablets top the gift list. | Consumer tech upgrades dominate, especially for remote workers. |
| Apparel & Beauty | Outerwear, athleisure, skincare kits, and hair tools make a strong comeback. | Increased demand for fashion and self-care, influenced by social media trends. |
| Online vs. In-Store Shopping | Online shopping remains dominant, but in-store visits increase for specific experiences. | Hybrid shopping behavior: convenience online and tactile in-store experiences. |
| Payment Trends: Credit vs. BNPL | Credit cards remain dominant, but Buy Now, Pay Later (BNPL) services grow. | Flexible payments are key for larger purchases and younger shoppers. |
| Timing of Shopping | The holiday season is more spread out, with a big surge in late December. | Shopping will be more evenly distributed across November and December. |
1. Electronics Continue to Lead the Holiday Gift List
As the holiday season approaches, electronics are poised to remain the number one category. ChatGPT forecasts that shoppers will focus on upgrading their tech, particularly in AI-enabled devices. This includes everything from laptops and tablets to earbuds and smart home devices. Remote workers, students, and tech enthusiasts are expected to be major drivers of demand as they replace aging equipment and invest in the latest gadgets.
Key Insights:
- AI-driven technology is becoming more accessible, and demand for AI-enabled devices like smart laptops will spike.
- Remote work and e-learning continue to shape the tech landscape, prompting households to refresh their home offices.
- Home automation is another growth area, with smart speakers, security systems, and home assistants trending this season.
“Electronics, especially tech that enhances productivity or simplifies daily life, will continue to be a top priority,” says Dr. Linda Howell, a technology expert. “We’ve seen a rise in tech-savvy consumers who want to integrate AI into their everyday routines, from work to entertainment.”
2. Apparel and Beauty: A Strong Comeback
Following two years of more muted demand, apparel and beauty are bouncing back, with both categories set to see significant growth in 2025. ChatGPT highlights that consumers are interested in outerwear, athleisure, and winter essentials as the cold weather months approach. AI-driven sizing tools are also expected to reduce the likelihood of returns, making online apparel shopping more attractive.
Similarly, beauty products are predicted to remain strong, with interest in skincare kits, fragrances, and hair tools rising, largely driven by gifting trends shared on platforms like TikTok and Instagram.
Key Insights:
- AI-powered sizing tools will help reduce online shopping returns and encourage more apparel purchases.
- Beauty trends continue to be shaped by influencers and social media, particularly in skincare and self-care.
- Gift sets in beauty categories like fragrances, haircare, and skincare are expected to be popular.
According to Maria Gonzalez, a retail analyst at the National Retail Federation (NRF), “The return of apparel and beauty to the forefront of shopping lists is fueled by both functional needs and social influences. More consumers want the confidence of knowing that the gift they choose is aligned with the latest trends.”
3. Online Shopping Dominates, But In-Store Visits Are Picking Up
While online shopping will remain dominant during the 2025 holiday season, physical in-store shopping is making a comeback. ChatGPT notes that more people are returning to stores for specific experiences such as trying on clothes, testing electronics, or purchasing last-minute gifts. Despite this, online shopping will continue to capture the largest share of spending, particularly due to the convenience of AI-driven product recommendations, personalized deals, and curated gift lists.
Key Insights:
- Hybrid shopping behaviors are emerging, with many consumers researching products online before visiting stores to complete purchases.
- In-store shopping will increase for apparel try-ons, electronics demos, and same-day pickup.
- Discount retailers and off-price chains are expected to perform particularly well as consumers focus on value.
Chiquita Brooks-LaSure, CMS Administrator, explains, “Consumers are adopting a blend of digital and physical retail. The ease of browsing and comparing online is undeniable, but there’s still a unique appeal to the tactile experience of shopping in-store, especially for more personal gifts.”
4. Credit Cards Stay on Top While BNPL Expands
The 2025 season will see credit cards continue as the leading payment method for larger holiday purchases. However, Buy Now, Pay Later (BNPL) services are growing rapidly, particularly for high-ticket items like electronics, apparel, and beauty products. This option has become especially popular among younger consumers, who seek more flexibility in their payments.
Key Insights:
- Credit cards are preferred due to broad acceptance and the ability to earn rewards, particularly for larger purchases.
- BNPL services, allowing shoppers to split payments into manageable installments, will see increased usage, especially in categories like electronics.
- Digital wallets will continue to expand, with mobile-focused checkouts becoming increasingly popular.
“Buy Now, Pay Later is increasingly viewed as a way to make larger purchases more manageable without incurring interest charges,” says Dr. Thomas Anderson, an economist and payment trends expert. “As more consumers struggle with debt, BNPL gives them an option to manage cash flow during a busy shopping season.”
5. Shopping Timing: More Spread Out, with Late Surge
ChatGPT predicts that the 2025 shopping season will be more evenly distributed between November and December. While Black Friday and Cyber Monday will still see significant activity, early promotions and AI-driven pricing will encourage earlier shopping. However, there will still be a surge in late December, particularly between December 15 and 22, driven by consumers seeking last-minute gifts, same-day pickups, and corporate gifting.
Key Insights:
- Earlier shopping will be encouraged through AI promotions, with a steady increase in sales throughout November and December.
- Late December surge is expected as consumers finalize holiday shopping, especially for quick delivery and bulk gifts.
- Economic concerns such as high debt may encourage shoppers to space out their purchases.
Maria Gonzalez from NRF notes, “With financial pressures weighing on many shoppers, we’re seeing a trend where consumers are more strategic and deliberate in their purchases. The longer shopping season helps shoppers stay within budget while still taking advantage of discounts.”
Conclusion: The Evolving Landscape of Holiday Shopping
As we approach the 2025 holiday season, these insights from ChatGPT give retailers and shoppers a clearer picture of what to expect. With electronics leading the charge, apparel and beauty making strong comebacks, and BNPL services offering more flexibility, this holiday season promises to be dynamic. The trend of more spread-out shopping and increased in-store visits reflects a shift toward more mindful and strategic spending, driven by economic factors and technological advancements.
In this evolving landscape, retailers must stay agile, offering personalized experiences both online and in-store, while shoppers can take advantage of extended holiday deals and flexible payment options to navigate a more complex, yet exciting, holiday shopping season.
FAQs
What products will dominate holiday shopping in 2025?
Electronics, apparel, and beauty products are expected to top the gift list, with tech devices like laptops and smart home products leading the charge.
Will online shopping continue to grow?
Yes, online shopping will still dominate, but there will be an increase in in-store visits for certain experiences like trying on clothes and testing electronics.
How will payment methods change this holiday season?
Credit cards will remain the preferred payment method, but Buy Now, Pay Later (BNPL) services will continue to grow, especially for larger purchases.
When will most shopping take place?
Shopping will be more spread out across November and December, with a late surge between December 15 and 22, driven by last-minute purchases and corporate gifting.
Will returns increase after the holidays?
Yes, returns are expected to rise, particularly for apparel and beauty items. Retailers offering easy return processes will benefit from this trend.