Julia Chirkova
Consumers are gearing up for a Halloween season that promises to be as spirited as ever, with projected spending set to reach a remarkable $13.5 billion this year. This figure, according to the National Retail Federation’s (NRF) annual consumer survey conducted by Prosper Insights & Analytics, not only maintains the robust spending levels of last year’s record-breaking $13.1 billion but also underscores a persistent consumer enthusiasm for the beloved autumn holiday. The NRF, a leading authority on the retail industry, has been tracking Halloween spending trends for nearly two decades, providing invaluable insights into consumer behavior and market dynamics.
The Evolving Landscape of Halloween Celebrations
The NRF’s findings reveal a nuanced approach to Halloween spending, with consumers demonstrating a clear prioritization of the holiday while simultaneously exhibiting a heightened awareness of affordability. Allison Zeller, NRF Vice President of Industry and Consumer Insights, highlighted this duality, stating, "Consumers continue to make Halloween a spending priority, but they are also approaching the season with affordability in mind." She further elaborated on the long-term trend observed in their surveys: "For more than two decades, NRF’s Halloween survey has tracked how consumers celebrate the holiday, and this year’s results show that shoppers are being thoughtful and strategic, looking for ways to maximize value throughout the season. Retailers understand these priorities and are offering a wide range of products across price points, making it easier for consumers to celebrate in ways that fit their budgets."
This strategic mindset is reflected in the timing of Halloween purchases. A significant portion of consumers, approximately half (49%), indicate they begin their Halloween shopping in September or even earlier, a trend that has remained consistent with the previous year. This early engagement is a testament to Halloween’s evolution from a single-day event into an extended season of celebration. Over the past decade, the percentage of consumers starting their Halloween preparations before October has steadily increased, rising from 34% in 2016. This shift suggests a growing desire to fully immerse in the autumnal spirit and allows for more deliberate planning and budgeting.
The Dual Drivers of Early Halloween Shopping: Enthusiasm and Value
The motivations behind this early shopping surge are twofold: sheer enthusiasm for the season and a savvy pursuit of value. A substantial 42% of early shoppers cite their anticipation for fall as a primary driver, while 34% express that Halloween is among their favorite holidays. This indicates a deep-seated cultural appreciation for the festive atmosphere and traditions associated with Halloween.
However, financial considerations also play a crucial role. Twenty-three percent of early shoppers explicitly state they purchase items in advance to spread out their budgets, acknowledging the financial impact of holiday spending. Furthermore, 21% are motivated by the availability of attractive prices and promotions, demonstrating a proactive approach to securing deals before the peak season. This dual focus on enjoyment and economic prudence shapes consumer behavior and provides retailers with valuable insights for inventory management and marketing strategies.
Sustained Popularity and Shifting Celebration Habits
Halloween’s enduring popularity is evident in the consistently high participation rates. This year, 74% of consumers plan to celebrate, a figure that closely mirrors last year’s 73%. Notably, this level of engagement has held steady since its surge in popularity during the COVID-19 pandemic and remains significantly higher than pre-pandemic levels, when only 68% of consumers indicated plans to celebrate in 2019. This sustained interest highlights the holiday’s resilience and its ability to foster community and personal expression, even amidst changing societal landscapes.
The traditional activities remain the cornerstones of Halloween celebrations. Handing out candy continues to be the most popular activity, with 61% of celebrants participating. Dressing in costumes follows closely at 50%, underscoring the personal and creative aspect of the holiday. Home and yard decorations are also a significant part of the festivities, with 42% of consumers planning to adorn their spaces. Carving pumpkins and watching scary movies are equally popular, each cited by 42% of respondents. These consistent trends suggest that while the way consumers shop and plan may evolve, the core essence of Halloween celebration remains deeply rooted in familiar traditions.
Strategic Spending and the Quest for Value
While the average per-person spending is projected to be around $115.14, a slight increase from $114.45 last year, consumers are not blindly increasing their outlays. Instead, they are adopting a more strategic approach to manage costs. When faced with higher-than-expected prices on Halloween items, a significant portion of consumers are employing savvy tactics. Nearly one-third (31%) indicate they will engage in comparative shopping, actively seeking out the best deals across different retailers. Another 26% plan to utilize coupons or wait for sales events.
Furthermore, a substantial 34% of consumers are focused on maximizing the long-term value of their purchases by looking for items that can be reused in future years or repurposed for other occasions. This trend towards sustainability and multi-purpose purchases reflects a broader consumer shift towards mindful consumption and a desire to get the most out of every dollar spent, especially in the context of discretionary holiday spending.
Top Spending Categories and Retailer Preferences
The hierarchy of Halloween spending categories remains largely consistent year over year. Candy continues its reign as the undisputed king of Halloween purchases, with an impressive 96% of consumers planning to buy sweets, contributing an estimated $4.1 billion to the overall spending. Decorations follow closely, with 78% of consumers planning purchases that are expected to total $4.3 billion. Costumes are also a major expenditure, with 71% of shoppers anticipating spending $4.4 billion on outfits for themselves, their families, and even their pets.
An interesting uptick is observed in the greeting card category, which has seen increased popularity this year. Planned purchases for greeting cards have risen to 42% from 38% in the previous year, with an expected spending total of $0.8 billion. This suggests a renewed appreciation for traditional forms of communication and festive well-wishes as part of the holiday experience.
In terms of shopping destinations, discount stores continue to be the preferred choice for Halloween shoppers, attracting 39% of consumers. Specialty Halloween and costume stores remain popular, accounting for 32% of purchases. Online retailers are also a significant channel, with 27% of consumers opting for the convenience of e-commerce. A noteworthy trend is the increasing interest in supporting local and small businesses for Halloween purchases, with 13% of consumers planning to shop at these establishments. This represents a near doubling from the 7% observed a decade ago in 2016, indicating a growing consumer desire to support community-based enterprises.
The Rise of AI in Halloween Planning and Inspiration
In a significant technological development, nearly half (47%) of consumers are leveraging Artificial Intelligence (AI) platforms and tools to assist with their Halloween shopping this year. The primary applications of AI in this context include brainstorming and generating ideas during the planning phase (34%) and seeking recommendations or inspiration during product research (32%).
Phil Rist, Executive Vice President of Strategy at Prosper Insights & Analytics, commented on this burgeoning trend, stating, "AI is becoming an increasingly common part of the consumer shopping journey. As consumers prepare for Halloween, many are using these tools to brainstorm costumes and decorating themes, explore production options and find inspiration that help bring their celebrations to life." This integration of AI signifies a shift in how consumers gather information and make decisions, moving beyond traditional methods to embrace innovative digital solutions.
While online searches continue to be a leading source for Halloween costume inspiration, their dominance has slightly waned. Online searches account for 32% of costume inspiration, down from 37% last year, marking its lowest point in a decade. Conversely, retail stores and dedicated costume shops are emerging as increasingly important sources for inspiration, serving as the second most popular channel for costume ideas (26%) and the top source for decoration inspiration (31%). This suggests a blended approach to inspiration, where digital exploration is complemented by the tangible experience of browsing in physical retail environments.
Costume Trends: A Look at What’s Haunting This Year
The perennial favorite of dressing up continues to drive significant spending across all age groups and even extends to our furry companions.
Children’s Costumes: Fantasy and Familiarity
An estimated $1.5 billion will be spent on children’s costumes this year, with beloved characters from comic books dominating the landscape. Spider-Man is set to be the most popular choice, with 4.6 million children planning to don his iconic suit. Superheroes, in general, are a major draw, with 2.3 million children opting for superhero attire. Rounding out the top five for children are princesses, expected to be worn by 2.2 million kids, followed by witches (1.6 million) and ghosts (1.6 million), showcasing a mix of classic spooky figures and popular fantasy characters.
Adult Costumes: Classic Scares and Superhero Iconography
Adults are projected to spend $2 billion on their Halloween ensembles. Classic Halloween characters continue to hold strong appeal, with witches being the most popular choice for 4.8 million adults, followed closely by vampires, who will be embodied by 4.2 million individuals. The superhero phenomenon extends to adults as well, with Batman being a favored choice for 2 million, and Spider-Man for 1.5 million. Ghosts also make a significant appearance on the adult costume list, with 1.4 million people planning to embrace the spectral.
Pet Costumes: Fido and Friends Get Spooky
The Halloween spirit has undeniably extended to our four-legged family members, with consumers planning to spend approximately $0.92 billion on pet costumes. This year’s popular pet costume trends include pumpkins, with 11.6% of pet owners opting for this festive gourd. Hot dogs are also a surprisingly popular choice, accounting for 5.9% of pet costumes, followed by ghosts at 2.8%.
The NRF’s annual Halloween consumer shopping survey, a cornerstone of retail trend analysis since 2005, was conducted from September 1st to 9th, surveying 7,889 consumers with a margin of error of plus or minus 1.1 percentage points. The insights gleaned from this comprehensive research provide a clear picture of consumer sentiment, spending habits, and the evolving nature of one of America’s most cherished holidays, demonstrating its continued economic significance and cultural resonance.
