A Boost in Halloween Spending

If you thought the United States’ economy suffered over the last few years, you probably consulted a major or local newspaper, the evening news, and/or a plethora of fact- or opinion-based blogs from politically-minded authors. It most likely never occurred to you to review a specific sector of retail activity—the Halloween market. Reports generated this year show results that defy conventional assumptions about Americans’ spending habits over the last few years: rather than opening their wallets simply for necessity, statistics show, many U.S. residents elected to celebrate the holiday with a healthy supply of cards, candy, and, of course, costumes.

Halloween retail sales are comprised of a wide range of consumer goods—from wigs to lawn decorations—aimed at adults, children, and even pets. They’ve sustained revenue between two critical spending periods: back-to-school season and Christmas, and stand second only to the winter holidays in terms of home decoration. And in the last two years, Halloween-related sales have steadily grown.

Comparative Revenue for Halloween Activities Against Percent Change

According to the 2010 Halloween Consumer Intentions and Actions Survey conducted by Big Research for the National Retail Federation (NRF), American consumers planned to spend more money in all major Halloween categories in 2010, compared to the spending plans they had in 2009. The NRF compiled data covering the span of 2005 to 2010, revealing that consumers planned to spend $1.05 billion more for general Halloween preparation last year than in 2009, and over $2.5 billion more than in 2005. Furthermore, shoppers imagined they’d spend $2.05 billion on costumes in 2010, up $.3 billion from 2009, with comparable increases for consumer-estimated spending on candy and decorations ($.26 billion and $.4 billion, respectively).

Average Halloween Spending Per Group by Age

The NRF’s findings indicate not only a boost in consumption, but also a growing interest in general Halloween observance. 63.8% of Americans expected to celebrate Halloween and/or participate in Halloween-related activities last year, a 1.7% spike from 2009, while 72.2% of American consumers planned to distribute candy in 2010. A breakdown of average expenses based on age illustrates that shoppers within the 18-44 age bracket—particularly women—contribute the most to Halloween revenue; this is likely attributed to a greater level of participation in trick-or-treating and party attendance.

If you, like most other Americans, are gleefully anticipating the inaugural event of the holiday season, now’s the time to decorate your home, dress up, or deck out your little ones—or, if you’ve really fallen under its spell, do all three.