Halloween spending to be highest among Millennials and Gen Z, according to a report
Halloween 2022 saw a notable increase in spending across the United States, with consumers showing strong enthusiasm for the holiday despite inflationary pressures. According to LendingTree's Chief Credit Analyst Matt Schulz, people are excited to spend on the things they love most, particularly Halloween.
During the Halloween period, Party City's revenue rose by 13.9%, reaching $415.5 million. This surge in revenue is a testament to the increased spending by consumers. Among the items customers plan to splurge on are costumes, decorations, Halloween-themed activities, and full-sized candy for trick-or-treaters.
Halloween spending in 2022 contributed substantially to overall holiday sales. The expenditure was increasing year-over-year, with 2024 projections around $15 billion—up nearly 23% from 2023. The average spending per consumer was around $104-$108 in recent years, suggesting a similar level or growth in 2022.
Consumers spent the most on costumes, with around $3.8 to $4.1 billion spent in recent years. Decorations and candy each accounted for roughly $3.5-$3.8 billion. Regional differences in candy spending were observed, with Indiana households spending more on candy ($20.30 average) compared to Arkansas ($9 average).
Approximately 68-72% of Americans celebrated or planned to celebrate Halloween in recent years, with more than half indicating they would increase their budget. Despite inflation, consumers maintained or increased spending, reflecting Halloween’s strong cultural significance and willingness to spend on experiences and traditions.
Surveys show many consumers noticed higher prices in related categories such as food and decorations. However, consumers adjusted their shopping accordingly, with some reducing their candy purchases (23%), creating costumes and decorations instead of buying them (10%), or comparison shopping (20%) to account for price increases due to inflation.
The age group spending trends for Halloween 2022 are not as detailed as for other holidays, but related holiday spending data suggests younger adults (Gen Z and Millennials) tend to spend more. For instance, Gen Z hosts planned higher spending for Thanksgiving ($491) than Millennials ($483), Gen X ($385), or Boomers ($292).
Retailers' sales began to rebound during the Halloween period, indicating a strong recovery from the pandemic's impact on consumer spending. Americans are predicted to spend $10.6 billion on Halloween this year, an increase from $10.1 billion in 2021. Gen Z plans to spend an average of $202, Millennials $255, Gen X $145, and Baby Boomers $58 on Halloween.
In conclusion, Halloween spending in 2022 increased significantly, with strong consumer participation and spending growth across costumes, candy, and decorations. Inflation was present but did not dampen spending enthusiasm significantly. Younger adults tended to be bigger spenders on holidays, influencing growth, while regional differences in candy spending were observed.
Sources: 1. National Retail Federation 2. Adobe Analytics 3. CandyStore.com
- Artificial intelligence (AI) can be used to analyze spending patterns during Halloween, providing insights on consumer behavior and preferences.
- Research suggests that during the pandemic, there was a shift in spending from travel and experiences to home-and-garden items, including Halloween decorations.
- With the easing of restrictions, deals-and-discounts on Halloween-themed items such as costumes and decorations could attract more consumers to physical stores, potentially reviving the shopping experience.
- As inflation continues to impact various aspects of lifestyle, consumers might seek out strategies like shopping around for deals, creating homemade costumes or decorations, or reducing candy purchases to manage their Halloween budgets more effectively.
