The Economics of Valentine's Day: How Love & Money Intertwine

You think that Valentine’s Day doesn’t have a big impact on the economy? You would be surprised by how much economic stimulus this one holiday has on a local and national scale

Valentine's Day is a holiday that is steeped in tradition and sentimentality, but it also has a significant economic impact. 

From the flowers and chocolates to the jewelry and dinner reservations, the holiday generates billions of dollars in revenue for businesses both large and small. 

In this post, we'll explore the economics of Valentine's Day and how love and money intertwine on this special day.

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How much do people spend on Valentines Day?

Valentine's Day is big business, according to the National Retail Federation that publishes an annual survey, carried out by Prosper Insights & Analytics to learn how the consumer expects to spend their money on this celebration.

The findings in this survey expect consumers to spend an average of 185.81 in gifts and activities for 2024. That's a total of $25.8 billion in spending on the holiday. 

Over half (53%) of the surveyed plan on celebrating Valentine's this year, while this indicator hiked to 62% for consumers age 25-34.

From a $25.8 B total in spending, for the celebrations, surveyed people planned to use $14.2 B in gifts.

The NRF's report mentioned that last year consumers celebrated all special relationships in their lives (including pets and co-workers), while this year they expect them to priorituze gifts for their partners.

“With consumers prioritizing their spouse or significant other this year, retailers expect to see a shift in spending for certain gifting categories” said Matthew Shay NRF President and CEO.

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How Valentine’s Day Compares to Other U.S. Holidays

Because of its spending relevance, this date is considered a major holiday for the retail and service industry and it is comparable to other holidays in terms of economic impact, along with Christmas, Thanksgiving, Easter, and Halloween, that also generate a significant revenue. 

These holidays also drive consumer spending on gifts, decorations, and travel.

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What is Spent on Valentine’s Day?

We all know that candy and flowers are a bçig part of Valentine’s Day.

However, it’s a good idea to take a closer look at the numbers shown in the 2024's NRF survey to see where the economic impact is felt the most. 

Most popular gifts

• Candy 57%
• Greeting cards 40%
• Flowers 39%
• An evening out 32%
• Jewelery 22%
• Clothing 21%
• Gift card / certificate 19%

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