Icelanders like to cheer themselves up with ‘little luxuries’ the most in the world, according to a July 2026 report on financial habits. A new study released by the custom packaging company Arka compared spending across 32 nations to see which likes to treat themselves the most.
Key highlights
- In Iceland, locals spend almost $13K annually on little luxuries like restaurants, recreational activities, and clothing.
- The biggest vacation and leisure lovers are the Portuguese, who budget $4.6K on travel-related expenses.
- Luxembourg residents are the keenest about wardrobe updates, spending over $2K on new clothes in a year.
To identify which nations spend the most on themselves and little luxuries, the study identified four financial categories that fit that profile. The research considered restaurant and hotel spending, recreation and culture budgets, clothing and footwear expenses, and furnishing costs. To fairly compare nations, each spending category and the budget total were calculated as per-person annual costs and adjusted to PPP (purchasing power parity).
Here’s where nations with the most ‘little luxuries’ spending land:
| Country | PPP little-luxury spend per person | Restaurants & hotels, PPP $ per person | Recreation & culture, PPP $ per person | Clothing & footwear, PPP $ per person | Furnishings, PPP $ per person |
| Iceland | $12,959 | $5,282 | $4,457 | $1,346 | $1,875 |
| Austria | $12,620 | $4,755 | $3,594 | $1,844 | $2,426 |
| United States | $12,541 | $3,700 | $5,027 | $1,540 | $2,274 |
| Luxembourg | $11,795 | $3,246 | $3,316 | $2,076 | $3,158 |
| United Kingdom | $11,063 | $3,831 | $3,577 | $1,772 | $1,882 |
| Ireland | $10,585 | $5,126 | $2,381 | $1,454 | $1,624 |
| Australia | $10,145 | $3,065 | $3,947 | $1,417 | $1,716 |
| Netherlands | $9,719 | $2,941 | $3,068 | $1,644 | $2,066 |
| Italy | $9,553 | $3,126 | $2,288 | $1,931 | $2,208 |
| Portugal | $9,389 | $4,661 | $1,553 | $1,611 | $1,565 |
If you’re interested in the full report findings, you can check them by following this link.
Iceland
PPP little luxuries spending: $12.9K per person Restaurants and hotels (PPP): $5.2K per person Recreation and culture (PPP): $4.4K per person Clothing and footwear (PPP): $1.3K per person Furniture (PPP): $1.9K per person
Icelanders treat themselves the most with little luxuries, spending the equivalent of $12.9K each year per person. Most of it goes to restaurants and vacations, at $5.2K, and no other country in the top 10 is a bigger leisure lover. Icelanders are a bit more budget-conscious about their clothing, but the costs still come to an equivalent of $1,346 annually.
Austria
Austrians follow closely on luxuries, with just a $300 smaller budget than Icelanders. Here, locals are much keener on shopping and new furniture, spending $1.8K and $2.4K, respectively. Restaurants and vacations are Austrians’ favorites, too, as residents spend around $4.7K on hotel stays and food.
The US
In third place are Americans, who spend the most on recreation and culture in the top 10, at $5K per person. This includes hobbies, books and even pets’ equipment, but on travelling and restaurants US residents spend much less. Hotel and extra meals budget for an average American amounts to $3.7K, and $1.5K more is added by the wardrobe expenses.
Luxembourg
Luxembourg residents take fourth spot, with the biggest fashion interest. Locals spend the equivalent of $2K on clothes and footwear, over $500 more than Americans. At the same time, restaurants and travelling are much less important for Luxembourgers than for Americans or Austrians, and residents spend around $3,246 annually.
United Kingdom
The UK completes the top 5 countries where people spend the most on ‘little luxuries’, with an average budget of $11K. Brits spend almost the same on tourism and recreation, with $3.8K going to hotels and restaurants each year, and $3.5K towards hobbies, culture, and relaxation. Home improvement is rarely what Brits spend extra money on, as the annual budget for it is two times smaller than for vacations and restaurants, at $1.8K.
An eco-friendly packaging expert from Arka commented on the study:
“What people spend extra money on is more than just statistics about disposable income. Based on this data, Americans are not that interested in luxury travel or famous clothing brands as their image suggests. Smaller budgets also mean conscious spending: more and more Americans turn to cheaper and more sustainable second-hand markets. The comfort of their homes is important for Americans, too, and 48% look for eco-friendly options for their furniture.”
Methodology: To identify which nations spend the most on themselves and little luxuries, the July 2026 study by the custom packaging company Arka identified four financial categories that fit that profile. The research considered restaurant and hotel spending, recreation and culture budgets, clothing and footwear expenses, and furnishing costs. To fairly compare nations, each spending category and the budget total were calculated as per-person annual costs and adjusted to PPP (purchasing power parity).
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