In the United States, Halloween holds significant economic importance, with anticipated annual spending expected to soar to a record-breaking figure exceeding 12 billion U.S. dollars in 2023. Consumers initiate their Halloween shopping well in advance. For example, when it comes to costumes, approximately one-quarter of surveyed shoppers intend to make their purchases between two and three weeks prior to the event, while fewer than 10 percent plan to start shopping just one to three days before Halloween. Be it costumes for adults, children, or even their pets, consumers allocate the most substantial portion of their Halloween budget to these outfits, with the projected expenditure on Halloween costumes forecasted to exceed a total of over four billion U.S. dollars in 2023.
In 2023, over 70 percent of consumers in the United States expressed their intent to partake in Halloween festivities.
Pumpkin Carving Tradition:
Notably, in 2023, the decreasing prices of individual pumpkins led to a surge in the intention to carve pumpkins for Halloween. A striking shift was observed, with over 154 million individuals in the U.S. planning to partake in pumpkin carving, marking an increase from the approximately 149 million participants the previous year.
U.S. Pumpkin Production and Consumption:
In 2022, the United States witnessed a substantial pumpkin production, amounting to approximately 16.5 million centum weight (cwt), which represented a remarkable 25 percent increase compared to 2020. This upsurge in production was coupled with a rise in per capita pumpkin consumption, with the average American consuming around five and a half pounds of fresh pumpkin.
Like previous years, the top ways consumers are planning to celebrate are handing out candy (68%), decorating their home or yard (53%) or dressing in costume (50%). However, in a return to pre-pandemic norms, more consumers also plan to throw or attend a party (32%) or take their children trick-or-treating (28%).
Halloween 2023 Consumer Sentiment Findings:
- Celebration Plans: For those planning to celebrate, popular activities include house decoration (58%), candy distribution (56%), trick-or-treating (37%), cooking or baking (27%), hosting or attending gatherings (25%), and public event attendance (23%).
- Candy Dominance: Candy remains the most significant Halloween purchase, with 80% of celebrators intending to buy it. Key factors influencing candy purchases include price (65%) and special promotions (44%).
- Brand Preferences: When buying for themselves, shoppers tend to opt for name brands, with 27% choosing premium or high-end brands and 63% selecting mid-range or popular brands. Conversely, when purchasing for trick-or-treaters, 15% prefer premium brands, 58% opt for mid-range brands, and 31% go for value or store brands.
- Desire for Variety: Candy buyers are inclined to purchase variety packs (70%), followed by chocolates (53%) and gummy candies (29%), with only 22% planning to buy full-sized candy bars.
- Other Purchases: In addition to candy, Halloween celebrators plan to buy decorations (45%) and costumes (45%). Food (36%) and alcoholic beverages (17%) also make the shopping list.
- Preferred Shopping Channels: Over half of shoppers (56%) intend to shop in physical stores, such as Walmart and Target, while 44% plan to purchase items from grocery stores. Club stores like Costco and Sam's Club are the choice for 33% of shoppers, and 18% plan to buy from online retailers.
Candy Share Findings:
- Candy Sales in October: October sees a significant surge in candy sales, accounting for 11.9% of annual candy sales, nearly on par with December (12%). Chocolate candies dominate, experiencing a 1.7x increase in sales compared to other months.
- Retailers' Candy Share: Walmart, Costco, and Target capture the highest share of October candy spending. Costco's candy share doubled in October 2022 compared to the rest of the year, while other wholesale retailers like Sam's Club and BJ's also saw substantial share growth.
Market Research:
- Younger Generations: When it comes to Halloween celebrations and spending, younger generations play a pivotal role in the market. When surveyed about their anticipated Halloween expenditures in 2023, about one-third of Generation Z consumers expected to spend between one and 100 U.S. dollars. In contrast, a higher proportion of millennials foresaw spending over 100 U.S. dollars.
Among younger consumers, aged 25 to 44, there is a strong inclination to kickstart their Halloween shopping, with over 50% intending to shop in or before September," noted Phil Rist, Executive Vice President of Strategy at Prosper. He further highlighted the growing influence of social media as a source of costume ideas, particularly among those under 25, who are increasingly turning to platforms like TikTok, Pinterest, and Instagram for inspiration.
The primary channels of inspiration for Halloween costumes remain consistent, with online searches leading the way (37%), followed by in-store visits to retail or costume shops (28%), and input from friends and family (20%).
Discount stores continue to reign supreme as the preferred choice for purchasing Halloween items (40%), closely followed by specialty Halloween and costume shops (39%), as well as online retailers (32%). Notably, there is a noticeable uptick in consumer interest in shopping at specialty Halloween and costume stores this year, surpassing previous years.
Parents with Children (Family-Oriented): According to the National Retail Federation (NRF), parents with children under 18 years old are one of the largest Halloween spending groups. Spending: In 2022, this group planned to spend an average of approximately $100 per person on Halloween-related expenses, including costumes, decorations, and candy for their children.