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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After these venues, grocery, online and department stores, some of the most popular points of sale continue to be major consumer destinations such as Walmart and Amazon.com. 

Dressing Up: Big Dollars in disguise?

Costumes are one of the biggest drivers of Halloween seasonal spending.

In fact, more money is spent on costumes than any other category for the Halloween holiday. 

With a stunning 34% of the mentioned planned spendings for Halloween, customers expect to purchase their costumes at physical stores, Halloween-themed stores, or online. 

There are also some craft stores that will see elevated business from people who prefer to create their own Halloween attire, 13% of the the people mentioned crafts or fabric stores, while 10% local or small business

Scary Seasonal Decorations Get Big Bucks

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Halloween decorations have also become more and more popular over the years. In fact, we have started to see some serious spending on these scary decorations, 32% of the people planned to spend on Halloween decorations, adding up to $3.9B, a 14.7% jump over the 3.4B $spent last year. 

One of the most hyped Halloween decorations is the infamous 12-foot Halloween skeleton available at Home Depot. 

Priced at several hundred dollars, Home Depot can barely keep this outrageous Halloween decoration in stock. 

Trick or Treat: A Sweet Deal for Candy Makers

One of the biggest benefactors of the Halloween season is candy makers. With an estimated $3.6 billion in spending, some of the largest candy makers such as Hershey create Halloween-themed products which are available at supermarkets and major chains such as Walmart, Target, and Costco. We also see specialty candies available at this time. 

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Beyond that, we are seeing traditional food companies create Halloween-themed flavored foods. For instance, General Mills releases their monster-themed cereals including Count Chocula, Frankenberry, and Boo Berry. Overall, the candy industry and other food makers have everyone saying, “trick or treat.” 

Candy money mean sweet jobs

Referred in the confectionery industry as one of the “Big Four” seasons (Valentine's Day, Easter, Halloween and the winter holidays).

Halloween is accounted for about $6 B in retail sales, according to the National Confectioners Association (NCA), a $42 B industry in the US.

The Halloween season, described as the most exciting time of the year for the confectionery industry by John Downs, president and CEO of the NCA.

The chocolate, candy and confectionery industry employs 57,602 workers in 1,613 manufacturing facilities in the US and supports 638,956 additional jobs, 145,645 direct jobs (21,880 wholesale or broker jobs and 123,766 in retail), and 493,310 indirect jobs (268,975 supplier jobs and 224,335 induced jobs) according to data collected by the NCA from John Dunham & Associates in 2021, concluding that the industry has a 1 to 11 job generation ratio.

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The direct impact from the chocolate, candy and confectionery industry  in the US economy is $49B, with $10.5B in wages and tax contributions of $13.7 B, according to 2022, Euromonitor International.

Horror Movies: Big, Frightening Profits

Since the 1970s, horror movies have made a major economic impact on the film industry. Perhaps the first horror movie that directly addressed the holiday was the ironically titled Halloween. 

The movie Halloween made in 1979, cost only $100,000 to make and generated over $50 million dollars.

Since then, we have seen multiple releases of horror movies that are released around the Halloween season. 

Pumpkin Picking and Carving

It is also a major tradition for people to pick up a pumpkin and carve it as the ultimate Halloween decor statement. 

Each year, over $800 million dollars is spent on pumpkins alone!

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Usually, the pumpkin buying season will last from early October right up until Halloween day, 46% of the surveyed people by the NFR planned on carving pumpkins this season. 

Really Scary Profits

Overall, Halloween is a big holiday event where billions of dollars are spent on everything from candy to costumes. 

Over the coming years, it is expected that Halloween spending will rise.

Don’t be surprised if you see some more scary Halloween spending in the future.