Halloween spending to surpass 2021 level: NRF

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A quick dive:

  • The 2022 Halloween season may be more delightful than terrifying for retailers. Almost seven out of 10 consumers we plan to celebrate Halloween this yearsurvey of more than 8,200 people Prosper Insights & Analytics and the National Retail Federation found. The NRF predicts that consumers will spend $10.6 billion on Halloween this year, up from $10.1 billion last year.
  • The most popular ways to celebrate Halloween are candy (67%), outdoor decorations (51%), costumes (47%), pumpkin carving (44%) and attending or hosting a party (28%). NRF found that one in five consumers plan to dress their pets in a costume.
  • Costs for costumes, decorations and candy are expected to reach record levels. Costumes will make up the largest category of spending, with children’s and adult costumes projected to reach $2.9 billion, the highest since 2017. Pet spending is also expected to surpass 2021’s record high sales to reach $710 million.

Dive Insight:

This year’s Halloween may look more like it did before the COVID-19 pandemic, when participation in the holiday finally surpassed 2019 levels. ​​​​​​While overall consumer spending on Halloween is expected to increase, the NRF noted that consumers plan to spend an average of $100 on Halloween candy, decorations, costumes and cards, slightly below $103 last year.

When it comes to where consumers will get inspiration for their Halloween costumes this year, more than a third (36%) will look online for ideas, about a quarter will look in retail stores, and 19% will look at home for inspiration and friends. NRF report. The report also says that 70% of adults planning to dress up for Halloween have already picked out their costumes. And they will shop early.

Nearly half (47%) of consumers plan to shop for Halloween in September or earlier. In terms of where they will shop, 40% of respondents will shop at discount stores, 36% will shop at specialty Halloween or costume stores, and 31% will shop online for Halloween.

“Halloween is an exciting time for many families, and that enthusiasm is reflected in the number of Americans planning to celebrate the holiday this year,” said NRF President and CEO Matthew Shay. “As consumers continue to return to pre-pandemic behaviors, retailers are poised to meet this demand and help make this holiday fun and memorable.”

Halloween spending began to recover last year, preliminary research suggests found by NRF and Prosper Insights & Analytics. In 2021, consumers spent $10.1 billion on Halloween, up from $8 billion in 2020.

It was an unusual Halloween 2020 especially troublesome for retailers like Party City, who rely on the holiday to generate a significant share of sales. While supply chain disruptions and lingering coronavirus challenges have been a challenge for retailers in 2021, Halloween shopping jumped back after the distribution of the vaccine against COVID-19.

With demand for Halloween increasing this year, some brands have had to gear up to keep up with consumer demand. In an email to sister publication Food Dive, Hershey noted that the company there are more seasonal foods available this year in preparation for the higher demand expected this Halloween and holiday season.

https://www.retaildive.com/news/halloween-spending-surpasses-2021-levels/632229/ Halloween spending to surpass 2021 level: NRF

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