September 27, 2023
Photo: Canva
What’s Driving Halloween’s Momentum as a Shopping Holiday?
Despite a number of reports predicting a softer holiday season, Halloween spending is expected to reach the double-digits this year to once again surpass record levels.
Total Halloween spending is expected to hit a record $12.2 billion, climbing 15.6% from last year’s record levels of $10.6 billion and 38.6% compared to the pre-pandemic 2019 levels of $8.8 billion, according to the National Retail Federation’s annual survey conducted by Prosper Insights & Analytics.
“A record number of people (73%) will participate in Halloween-related activities this year, up from 69% in 2022” and 68% in 2019, according to the survey of over 8,000 U.S. consumers in early September.
NRF’s report indicated that Halloween purchases continue to be influenced by social media, a trend first identified in 2019. Prosper’s EVP of strategy, Phil Rist, said, “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.”
NRF also noted that the practice of decorating homes grew in popularity during the pandemic.
Expected spending across key categories this year versus pre-pandemic levels include:
- Costumes: $4.1 billion, up from $3.2 billion in 2019.
- Decorations: $3.9 billion, up from $2.7 billion in 2019.
- Candy: $3.6 billion, up from $2.6 billion in 2019.
- Halloween greeting cards: $500 million, up from $390 million in 2019.
Halloween spending appeared to be plateauing for a few years prior to the pandemic but has overall grown significantly since the start of the current century. According to NRF’s estimates, Halloween spending was $7 billion a decade ago in 2013 and only $3.3 billion in 2005.
Halloween currently ranks as retail’s ninth biggest spending event, according to the NRF, with an expected average spend per person of $108.24 this year. It falls behind back-to-college and back-to-school spending, winter holidays and celebrations, Mother’s Day, Father’s Day, Valentine’s Day, Easter, and graduation.
The healthy year-over-year growth in Halloween spending comes despite a number of holiday forecasts from Deloitte, Bain, AlixPartners, and others predicting a slowdown in holiday spending due to headwinds such as inflationary pressures, high credit card debt, and reduced pandemic-era savings.
PowerReviews’ Halloween survey of nearly 19,000 U.S. consumers fielded in August found 73% agreeing that their Halloween shopping will be impacted in some way by the broader economic environment. The top ways respondents think the economy may affect their Halloween shopping this year include looking for bargains and using coupons for Halloween items, cited by 44%; buying less costly candy and not purchasing or purchasing less Halloween decor, both 34%; shopping discount stores, 29%; and reusing existing costumes, 24%.
BrainTrust
Georganne Bender
Principal, KIZER & BENDER Speaking
Brian Numainville
Principal, The Feedback Group
Ryan Mathews
Founder, CEO, Black Monk Consulting
Recent Discussions
Discussion Questions
Are social media and/or pandemic-related behavior changes behind the recent uptick in Halloween participation and related spending? Will Halloween spending’s momentum continue in the years ahead?
Poll
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Social media exuberance and the pandemic have inspired consumers to seize opportunities to celebrate together.
If inflation remains high, more consumers will seek deals and buy Halloween items at dollar stores and discounters.
Halloween has always been a happily anticipated holiday. These days every type of retailer has a Halloween department and the product offerings are fun and all over the place. (Monogrammed plastic pumpkins? Who needs a monogrammed pumpkin?) Sure the pandemic set us back, but Halloween rebounded quickly.
Social media plays a big role, almost every other post I see on Instagram, Facebook, and TikTok is Halloween related and each one is better than the last. Thankfully, there are ideas for every budget because some of the decor is over the top cool.
Halloween sales will continue to grow as the need to decorate your home continues to rival Christmas. Each year I save ideas and vow to decorate our house, saving ideas to Pinterest so I don’t forget. Which I do and end up buying pumpkins for the porch. My small contribution to a favorite holiday!
Sometimes it’s just better not to overthink things.
Halloween has become an adult holiday and, let’s face it, it’s fun. As a quick walk through my neighborhood – currently invaded by seemingly countless numbers of 12 ft. skeletons (yours for a modest $299 at Home Depot) and a variety of plastic bodies and body parts crawling up from otherwise well-trimmed lawns attest, Halloween isn’t just for kids anymore. In fact, most of the kids go Trick or Treating through the stores downtown rather than from house-to-house, but that’s another observation for another time.
Social media may fuel costume trends a bit, but Halloween’s rise to the Holiday Pantheon well predates the pandemic. In fact, I can remember talking about Halloween becoming an A List retail event 20 years ago. Some kids just never grow up.
As for the future, forget all those repressed consultant studies. Barring another Great Depression or similar total economic meltdown, Halloween will continue to grow more-or-less irrespective of the economy. Whether any kids will participate remains to be seen, but their parents will.
Halloween offers a fun sales opportunity with all of the different aspects outlined like costumes, decorations, candy and so on. So for these categories and items, spending should continue, but the question is what channel will benefit. In the current environment this might be dollar stores and value-oriented retailers. And totally think social media plays a big part in encouraging one to “out-Halloween” the neighbors.
these days….any party is a good party. how many opportunities are there for an entire neighborhood to get out together to have a good time.
Halloween provides an opportunity to celebrate without pressure of expectations (real or imagined). Most people don’t have to worry about hosting people to stay, eat and drink at your house or buy presents (that you don’t know if they will want or need).
Halloween has secured its place as a significant retail event, with an enduring appeal that transcends generations. It’s exciting to see how social media and the creativity of consumers continue to drive this growth, serving as a reflection of the cultural zeitgeist of the year to date. As we’ve seen, retail trends influenced by cultural moments such as the release of the Barbie movie and Taylor Swift’s Eras Tour have resulted in major economic spikes, presenting ecommerce platforms with a fantastic opportunity to offer diverse and engaging Halloween products and experiences.
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Social media exuberance and the pandemic have inspired consumers to seize opportunities to celebrate together.
If inflation remains high, more consumers will seek deals and buy Halloween items at dollar stores and discounters.
Halloween has always been a happily anticipated holiday. These days every type of retailer has a Halloween department and the product offerings are fun and all over the place. (Monogrammed plastic pumpkins? Who needs a monogrammed pumpkin?) Sure the pandemic set us back, but Halloween rebounded quickly.
Social media plays a big role, almost every other post I see on Instagram, Facebook, and TikTok is Halloween related and each one is better than the last. Thankfully, there are ideas for every budget because some of the decor is over the top cool.
Halloween sales will continue to grow as the need to decorate your home continues to rival Christmas. Each year I save ideas and vow to decorate our house, saving ideas to Pinterest so I don’t forget. Which I do and end up buying pumpkins for the porch. My small contribution to a favorite holiday!
Sometimes it’s just better not to overthink things.
Halloween has become an adult holiday and, let’s face it, it’s fun. As a quick walk through my neighborhood – currently invaded by seemingly countless numbers of 12 ft. skeletons (yours for a modest $299 at Home Depot) and a variety of plastic bodies and body parts crawling up from otherwise well-trimmed lawns attest, Halloween isn’t just for kids anymore. In fact, most of the kids go Trick or Treating through the stores downtown rather than from house-to-house, but that’s another observation for another time.
Social media may fuel costume trends a bit, but Halloween’s rise to the Holiday Pantheon well predates the pandemic. In fact, I can remember talking about Halloween becoming an A List retail event 20 years ago. Some kids just never grow up.
As for the future, forget all those repressed consultant studies. Barring another Great Depression or similar total economic meltdown, Halloween will continue to grow more-or-less irrespective of the economy. Whether any kids will participate remains to be seen, but their parents will.
Halloween offers a fun sales opportunity with all of the different aspects outlined like costumes, decorations, candy and so on. So for these categories and items, spending should continue, but the question is what channel will benefit. In the current environment this might be dollar stores and value-oriented retailers. And totally think social media plays a big part in encouraging one to “out-Halloween” the neighbors.
these days….any party is a good party. how many opportunities are there for an entire neighborhood to get out together to have a good time.
Halloween provides an opportunity to celebrate without pressure of expectations (real or imagined). Most people don’t have to worry about hosting people to stay, eat and drink at your house or buy presents (that you don’t know if they will want or need).
Halloween has secured its place as a significant retail event, with an enduring appeal that transcends generations. It’s exciting to see how social media and the creativity of consumers continue to drive this growth, serving as a reflection of the cultural zeitgeist of the year to date. As we’ve seen, retail trends influenced by cultural moments such as the release of the Barbie movie and Taylor Swift’s Eras Tour have resulted in major economic spikes, presenting ecommerce platforms with a fantastic opportunity to offer diverse and engaging Halloween products and experiences.