Halloween spending is projected to reach record levels this year, with the National Retail Federation (NRF) forecasting $12.2 billion in expenditures. This surge comes as more people embrace the holiday, exceeding pre-pandemic levels of participation.
As Halloween approaches, Americans are gearing up to make it one of the biggest spending seasons yet. According to the National Retail Federation (NRF), Halloween spending is set to hit a staggering $12.2 billion this year, signaling a return to pre-pandemic levels of enthusiasm for the holiday.
A recent survey conducted by Prosper Insights & Analytics, involving approximately 8,000 respondents, revealed that 73% of those surveyed plan to partake in Halloween-related activities. This marks a notable increase from the 69% reported in the previous year.
What’s particularly intriguing is that anticipated spending on Halloween decorations is poised to surpass expenditures on candy this year. Consumers are expected to allocate around $3.9 billion for spooky adornments, surpassing the projected $3.6 billion earmarked for satisfying sweet cravings. This reflects a significant rise from the $3.1 billion spent on candy during the previous Halloween season. Moreover, adult costumes are expected to contribute $2 billion to the holiday economy, while children’s costumes will see an allocation of approximately $1.4 billion.
After experiencing a dip in both participation and spending during the height of the pandemic, Halloween is now poised to make a triumphant comeback. Half of the surveyed participants expressed their intention to don costumes for the occasion, while a substantial 68% are gearing up to distribute Halloween treats. Additionally, 53% of respondents are planning to deck out their homes or yards in spooky fashion for the October 31st celebration.
Matthew Shay, President and CEO of the NRF, shared his insights on this year’s Halloween spending spree, stating, “More Americans than ever will be reaching into their wallets and spending a record amount of money to celebrate Halloween this year.”
The enduring appeal of Halloween decorations is another noteworthy trend. Among those planning to celebrate the holiday, a substantial 77% are considering purchasing decorations. This statistic is in line with last year’s numbers and shows an increase from 72% in 2019. Furthermore, the NRF reported that 32% of survey respondents plan to either host or attend Halloween parties, marking an increase from 28% in the prior year. Additionally, 28% of those surveyed have Halloween night plans to take their children trick-or-treating.
When it comes to shopping for Halloween essentials, it’s interesting to note that an almost equal percentage of people, 40%, intend to visit discount stores compared to those planning to visit Halloween specialty stores (39%). Meanwhile, 32% of individuals stated that they would turn to online platforms for their Halloween-related purchases.
The trend of early shopping for significant events and holidays appears to be on the rise. Retailers such as The Home Depot have already introduced their Halloween product lineups months in advance. This trend bodes well for specialty retailers like Party City, which heavily relies on consumer spending during holidays and celebrations.
Halloween is no exception to this shift in consumer behavior, with 45% of Halloween enthusiasts planning to commence their shopping well before October arrives. This marks a significant increase from a decade ago when only 33% opted for early shopping, as noted by the NRF.
Younger consumers, in particular, are enthusiastic about starting their Halloween shopping early, with more than half of those aged 25-44 planning to do so before or during September. Phil Rist, Prosper’s Executive Vice President of Strategy, commented on this trend, stating, “Social media continues to grow as a source of costume inspiration for younger consumers, as more people under 25 are turning to TikTok, Pinterest, and Instagram for ideas.”
Moreover, 37% of individuals stated that they would seek inspiration online this year, and it’s expected that consumers will allocate a whopping $700 million for pet costumes. The NRF also identified the influence of this year’s top movies and shows on costume choices, with characters like Spiderman, Barbie, and Mario expected to dominate the Halloween scene.
Source: t.ly/aTIjp
