Leisure sector quarterly update

Our Tracker data reveals that overall net spending on leisure activities declined for the second consecutive quarter in Q4 2025 from -9.9% to -10.6%. The drop reflects continued caution among consumers when spending on discretionary categories. 

While leisure net spending in Q4 declined in only 5 of 11 leisure categories measured by the Deloitte Consumer Tracker when compared with Q3, the drops in spending among these five categories were higher than the increases seen in the other six categories. The most notable quarter-on-quarter declines in consumer net spending were in the long holiday ( -8.1 percentage points) and short holiday (-6.3 percentage points) categories. These results can be attributed to seasonality, as a drop in spending on holidays is usually expected in the last quarter of the year. Q4 also represents a time of year where expected higher levels of socialising should drive increased spending on eating in restaurants and drinking in pubs and bars. However, while the Q4 data shows improved spending on drinking in pubs and bars (+2.5 percentage points), spending on eating out dropped compared with both the previous quarter and the same period a year ago. Consumers chose to eat at home instead with our research showing a significant increase in consumers reporting takeaway purchases from restaurants and shops in Q4. Other categories that received a spending boost in Q4 included betting and gaming (+2 percentage points), in-home leisure activity (+1.6 percentage points), culture and entertainment (+1.5 percentage points) and going to the gym (+1.2 percentage points). The uptick in consumer spending on visiting the gym is not just quarterly but also year on year, a sign of the growing interest for health and wellness related activities even at a time of year where some consumers might be a bit more relaxed about their fitness routine. This also shows consumers shifting priorities as they continue to favour experiences over goods.  

Outlook for Q1 2026

The leisure sector entered 2026 against a backdrop of subdued economic growth and low consumer confidence. Leisure spending intentions for the start of 2026 paint a mixed picture with demand for travel expected to increase while other categories, especially around socialising and eating out, are expected to experience further reduction in consumer spending. While seasonality plays a part in the higher proportion of consumers intending to spend more on going to the gym as the year starts, the data shows that the improvement is both quarterly and year on year, indicating that the increased focus on health and wellness is expected to continue.

Consumer intentions for spending are anticipated to remain subdued across all remaining leisure categories, reflecting continued caution around discretionary spending especially on categories related to socialising. Spending intentions on drinking in pubs and bars, and on eating out are expected to see a decline of -9.6 percentage points and -9.7 percentage points, respectively, reflecting a post-Christmas dip but also ongoing challenges for the hospitality sector.

This sustained cautious outlook highlights how consumer leisure spending remains resilient but selective. Leisure and hospitality businesses need to remain focused on their social value proposition while also offering economic value and exceptional customer service to attract and retain an increasingly price-conscious and planning-focused consumer.