Pamela Rovaris/Archivio Pamela Rovaris/Mondadori Portfolio via Getty Images This holiday season, consumers are not only rethinking how they spend their money due to higher costs, they are also looking...
This holiday season, consumers are not only rethinking how they spend their money due to higher costs, they are also looking to spend more time at home. Two research reports reveal how these shifts may translate into increased spending on home décor and related products.
It’s going to be another “Ralph Lauren Christmas” that also spotlights “grannycore.”
In a research report from Faire, the B2B marketplace, the report’s authors said for the first time, “Gen Z and Millennials are expected to make up half of holiday spending, and they lead all generations in planning to host more at-home gatherings in 2026.”
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The findings show Gen Z is prioritizing in-person activities and would rather share a meal than get a present. Of those polled, 78 percent said they want nostalgic, screen-free gifts.
“Accordingly, this year, retailers are stocking for a holiday built around gathering, and emerging themes suggest this generation is turning to nostalgia and looking farther afield for an eclectic mix all their own,” the report stated.
Faire noted how wholesale provides the earliest read on what consumers will want. Faire’s network of independent retailers place orders months before holiday shoppers walk into their stores, so what they’re stocking is a preview of what they expect customers to buy.
The data showed that on Faire’s platform, orders for crafts and hobbies rose 58 percent, games 55 percent and puzzles 40 percent. The report said retailers are ordering for a generation that “is reviving analog hobbies such as knitting and painting, things ‘that can be touched and made.’ Needlework circles and other ‘grannycore’ activities are drawing younger crowds, younger players are filling drop-in game nights, and we see these trends influencing holiday tastes.”
Embroidery and needlepoint, knitting and crochet and scrapbooking each all increased around 80 percent or more on Faire year-over-year. These are activities that younger generations can do together. Often, these trends also include twists. In the U.S., for example, events pairing drinks with needlework rose 87 percent year over year, while searches for “craft night” rose 103 percent on Faire.
“Holiday crafts are driving part of the growth of the category, from Christmas crochet kits for snowmen and nutcrackers to needlepoint, cross-stitch and felt kits for making ornaments,” the report stated.
In games and puzzles, orders for playing cards jumped 55 percent, while board, card and party games saw a 50 percent increase. “In the U.S., orders for vintage and classic editions of board games nearly doubled, and two of the three board games stocked by the most U.S. retailers this summer were holiday editions of classic games,” the report’s authors said, adding that orders for holiday-themed board games, “from Santa-themed property-trading games to Christmas bingo and trivia, rose 49 percent.”
Last year, Gen Z revived a retro “Ralph Lauren Christmas” look that was built on tartan, velvet, candlesticks and nutcrackers. This year, that look is getting cozier and more handmade. “’Grannycore,’ the grandmother’s-house evolution of last year’s trend, is the fastest-growing holiday decor on Faire,” the report noted. “Tartan carries over, with tartan and plaid up 93 percent, and it’s now joined by ceramic Christmas trees up 136 percent, knits and crochet, tinsel and glass ornaments. Vintage, retro and antique-style decor is up 45 percent.”
These trends are also tracking at larger enterprise retail chains such as Walmart, Target and Michaels, as well as on Amazon.
In the “2026 Michaels State of the Holiday Season Report,” which the retailer conducted with Morning Consult, 80 percent of parents said they “are seeking screen-free, hands-on holiday activities, and nearly 8 in 10 consumers who celebrate (78 percent) say a $25 handmade gift means as much as or more than a $100 store-bought one.”
The data was based on a survey of more than 2,500 U.S. consumers. Of those polled, 65 percent said they want a less commercial holiday season, while 66 percent said hands-on activities “make the season more meaningful.” And 54 percent said their household already “has more stuff than it needs, and 61 percent are looking for screen-free holiday activities.”
“Families are heading into December feeling stretched, both on time and on budget,” said Heather Bennett, president and chief customer officer at Michaels. “This report shows that many are responding by starting earlier and choosing what feels personal over what’s pricey.”
One of the key findings of the report shows that 56 respondents said they’re worn out by the time they spend on screens, “and half (50 percent) plan to do more screen-free activities than last year.”
The report’s authors said Gen Z, the first generation to grow up with smartphones, isn’t far behind. “Nearly three-quarters (73 percent) are looking for screen-free, hands-on activities to do at home, and 46 percent plan to do more than last year,” the report said. “Many are setting boundaries, too: 69 percent of Gen Z and 72 percent of Millennials plan to set screen-free rules or try to unplug informally during the holidays.”
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