Russians are planning to reduce their expenditures on New Year’s festivities in 2025 due to economic challenges, as reported by the Kommersant business newspaper citing consumer surveys and expert insights.
According to a survey conducted by the online marketplace Avito, households anticipate spending an average of 14,000 rubles (approximately $175) on holiday preparations. This amount encompasses expenses such as food and ready-to-eat meals, decorations, clothing, gifts, as well as venue and equipment rentals.
This represents almost half of what was projected for New Year’s 2024, when Russians aimed to spend around 26,000 rubles ($325), with approximately 17,500 rubles ($219) allocated for food and 8,500 rubles ($106) for gifts, as reported by market research firm Nielsen.
The increasing inflation rates and rising costs for food, utilities, and clothing have led consumers to adopt a more frugal approach, according to Alexander Safonov, a professor at the Financial University under the Russian government. He noted, “People are limiting their purchases and expenditures, even during festive times. Regardless of income levels, the prevailing trend is to cut back on spending.”
Food expenses remain the largest burden, but consumers are shifting towards lower-priced products and forgoing luxury items. According to Safonov, red caviar, which averages 10,200 rubles ($128) per kilogram, has become a luxury that most households can only afford to include in a limited, “symbolic” way, with few willing to spend over 2,000 rubles ($25) for it.
Exotic fruits are also disappearing from holiday menus, with many opting for mandarins, which 56% of survey participants consider essential for New Year celebrations.
For numerous families, festive meals will largely consist of traditional dishes like Olivier salad, along with a modest selection of beverages and affordable fruits and vegetables. Safonov pointed out that even the price of the iconic Olivier salad has risen, with the minimum cost of ingredients for four servings increasing by 2.1% over the past year to 363 rubles ($4.50), according to the Association of Retail Trade Companies (AKORT).
Simultaneously, there is a growing interest in rural getaway options, with bookings for rental properties over the New Year period soaring by 89% year-on-year. Popular destinations include the republics of Karelia and Karachay-Cherkessia, as well as the Krasnodar region and Kemerovo and Yaroslavl regions.
Renting a house for a larger group often proves to be more economical than staying in hotels or traveling abroad, Safonov noted. “In previous years, people favored expensive trips overseas. Now they are opting for more budget-friendly locations within Russia, yielding considerable savings,” he added.
Restaurants are also experiencing subdued demand. Industry insiders report that while bookings for corporate parties and New Year’s events have remained stable, they lack extravagant programs or excessive entertainment.
Event organizers have observed that, although service fees have increased by about 20%, the overall demand has declined by a similar margin. “We aren’t seeing requests for high-end options—people are trying to cut costs,” stated Igor Bukharov, president of the Federation of Restaurateurs and Hoteliers, in his comments to Kommersant.
