Halloween Spending Expected to Break Records
CLAYTON, Mo. — Despite their concerns about the economy, consumers are planning to get into a spooky mood this Halloween, with spending expected to surpass last year.
Even compared to pre-COVID numbers, Halloween in 2023 was the biggest on record when U.S. families spending increased 15% to reach an all-time high of $12.2 billion. Fast forward to 2024, and Halloween shoppers are planning to spend more on candy, food, costumes and decorations this year, according to a new Advantage Outlook survey of Halloween shoppers.
"Over the past four years, Halloween — like many other holidays — has proven to be a resilient investment for both retailers and consumers, even amid economic uncertainty," wrote Kelly Ravestijn, senior vice president of commerce intelligence at Advantage Unified Commerce, a division of Advantage Solutions, a leading business solutions provider to consumer goods manufacturers and retailers.
This year, half of shoppers plan to spend $51 or more on candy while 59% will spend that amount on food for Halloween. Similar increases in spending are planned for costumes and decorations this year.
More Spooktacular Insights
According to Advantage Outlook's "Halloween 2024 Trends" report:
- Even as the economy shows positive improvements, 49% believe either inflation, the pending recession or both will impact their Halloween spending.
- Only 8% of shoppers plan to use delivery apps for candy and 9% for food or beverages.
- 46% of candy shoppers will purchase based on what has good value/price, while 42% of candy shoppers will purchase goods with promotions or sales.
- 55% will purchase candy multiple times during the season, with one-quarter buying three or more times.
"This trend reflects a broader consumer behavior where individuals are tightening their budgets on everyday expenses yet remain unwilling to sacrifice their cherished holidays and small luxuries," Ravestijn said. "Even as they cut corners elsewhere, consumers increasingly view holidays like Halloween as non-negotiable indulgences, reinforcing their value in the retail landscape."
Candy is King
It's no surprise that candy sales dominate Halloween spending, with chocolate at the top of list for 81% of candy shoppers. Chewy/gummy candies and mixed assortments are also popular, with approximately two-thirds of shoppers planning to purchase each of those categories, too.
Most shoppers plan to make their candy purchases at a mass retailer (81%), while grocery (40%), club stores (40%) and online retailers (34%) are also popular channels, according to Advantage Solutions.
However, while candy purchases are a given, Halloween candy buyers are slow to make their purchases — seven in 10 will wait until the week of Halloween to buy their candy.
Given that fact, Ravestijn suggests retailers can drive earlier purchases by offering candy as part of bundled deals with costumes and décor, creating themed assortments that encourage early shopping. She also recommends early-bird discounts and exclusive candy assortments, allowing retailers to capitalize on consumers' fear of missing out on limited-edition items and generate candy sales earlier in the season.
"Retailers should double down on creating a sense of urgency as Halloween approaches," she pointed out. "By offering targeted flash sales, bundling discounts and loyalty rewards closer to the holiday, retailers can attract these price-conscious shoppers. Well-stocked shelves and eye-catching displays in the final week are crucial to driving impulse buys as consumers rush to finalize their Halloween plans."
Advantage Outlook's "Halloween 2024 Trends" report can be downloaded here.
Headquartered in Clayton, Advantage Solutions is a leading provider of outsourced sales and marketing solutions to consumer goods companies and retailers.