All Things Money: Halloween, the Tricks Behind the Treats

Did you know that Halloween is a multibillion-dollar business? You would be surprised how much is spent on everything from costumes to candy and law decor. 

Yes, there is lots of business out there when it comes to ghoul masks and tiny candy bars.

So what is the overall economic impact of the scariest holiday of the year? Here, we will take a look at the many ways that Halloween creates a major economic impact. 

How Do Traditions Impact Spending?

Tradition is one of the key drivers of economic growth for Halloween. Many parents grew up going trick or treating. 

Now these adults pass on the tradition to their kids.

However, we have seen some changes over that time.Due to safety issues - especially during the 2020 pandemic - we saw the growth of “Trunk or Treating Events.” These events help maintain the continued growth in spending to the present day. 

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Traditional spending includes purchases of costumes, candy and Halloween decor.

When Did Halloween Become So Profitable?

Halloween wasn’t always the major economic holiday that we know of today. In fact, it wasn’t until the early 20th century that we began to see some business pop up around the costumes and decor for this holiday. 

According to the National Retail Federation's 2023 Halloween spending survey, carried out by Prosper Insight & Analytics, 73% of Americans are planning to celebrate Halloween in 2023. That includes $108.24 spending per person and an estimated $12.2 billion in planned spending. That’s a 15% rise, a total of $1.6B more from the $10.6B planned spending of the previous year. 

Breaking down that $12.2 billion number the estimates spending by category is the following:

• Costumes $4.1 B 
• Decorations $3.9 B
• Candy $3.6B
• Holiday cards $500 k

Overall, Halloween is one of the largest holidays in terms of economic impact. 

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Where Are Consumers Shopping?

We are finding that the consumer is spending their Halloween money at a number of places. The Halloween spending survey also asks about where customers are looking forward to make their purchases, among other shopping venues, this where the most popular:

• Discount stores 42%
• Halloween/costume stores 36%
• Grocery stores 25%
• Online 25%
• Department stores 23%

While discount stores make up for most of the mentions, specialty Halloween stores come up right next which can explain the explosive growth of Halloween-themed pop-up stores such as “Spirit of Halloween” which has over 800 locations as of 2023.

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