By Sudarsan Pattabiraman (M&A Advisor) | 510.944.5616 | sudarsan@upclinch.com
2024 Halloween is over and officially kickstarted the 2024 holoday economy. Given the joy and happiness surrounding Halloweend and its ramp-up, its prudent to explore and understand the potential of this economy and its contribution to the retail space.
Retailers:
Halloween retail in the U.S. involves a variety of segments, each
encompassing different types of retailers.
Ø Pop-Up Stores - In 2024, Spirit Halloween continues to lead in the Halloween pop-up retail model, operating more than 1,500 temporary stores nationwide. These pop-up stores, which thrive in vacant retail spaces, help meet the seasonal demand for costumes, decorations, and Halloween-specific goods. California itself hosts hundreds of Spirit Halloween locations each season, though exact numbers vary due to the temporary nature of these stores.
Ø Online and Traditional retail - For Halloween goods overall, Amazon leads costume sales online, followed by key players like Walmart and specialty retailers including Spirit Halloween, Party City, and Etsy. Nationally, brick-and-mortar retailers make up about 80% of the Halloween retail space, with the remaining 20% covered by online platforms, which have seen an uptick in usage for Halloween-related purchases.
This trend reflects a larger movement where seasonal and
flexible retail models, like pop-up stores, have become an essential part of
Halloween spending, capitalizing on unique spaces and offering tailored
experiences as demand peaks each October. This emphasizes the specialization preferences
of the educated consumers of 2024.
The Halloween Economy:
Here’s a detailed look at Halloween 2024’s retail economy
with spending projections across categories:
- Total Spending: Halloween spending for 2024 is expected to hit $11.6 billion, maintaining a strong trend even after 2023's record of $12.2 billion. This high level reflects robust interest in the holiday, which has become a full-season celebration for many Americans. Average consumer spending is estimated at $103.63 per person, encompassing costumes, decorations, and candy
- Early Shopping Trends: Almost half of consumers (47%) began shopping for Halloween in September, a significant increase from 32% a decade ago. This shift, particularly noticeable among the 25-34 age group (56% of whom shop early), is driven by excitement for fall festivities and the perception of Halloween as a full-season event
- Decorations: Halloween decorations have seen the most notable rise, with spending expected to reach $3.8 billion. This represents a 42% increase from 2019 as consumers expand their Halloween décor budgets to enhance celebrations at home. Retailers like Michaels and Spirit Halloween have responded by offering extensive décor collections that appeal to both traditional and new Halloween enthusiasts
- Costumes: Costume spending is projected to total $4.1 billion, with adults, children, and pets all contributing to this category. Adult costume spending will reach around $2 billion, a jump fueled by both classic and pop-culture influences, such as characters from the *Barbie* movie and *Beetlejuice*. Children's costumes will account for $1.4 billion, with favorites like witches and superheroes, while pet costumes are projected to reach $700 million, with pumpkins and hot dogs as popular choices. . Popup stores with other retailers like Party City and online platforms such as Amazon, Walmart, and Etsy dominating costume sales, major retailers in this category together account for approximately 13% of the costume retail market alone.
- Candy: Candy sales remain essential to Halloween, expected to climb to $3.5 billion, an increase from last year despite inflation. As 28% of families plan to trick-or-treat, demand for treats has been steady, making it a crucial element in Halloween spending. The trend is also influenced by tradition and the social nature of the holiday, with parties and neighborhood gatherings fueling purchases
- Shopping Channels: About 32% of consumers are choosing to shop online, a growing trend as people seek convenience and variety in their purchases. Meanwhile, 40% are shopping at discount stores to manage their holiday budgets. The combination of these trends points to an evolving consumer approach, balancing budget-conscious decisions with the desire for a rich Halloween experience
The steady spending and early shopping reflect Halloween's
growing importance in the retail calendar, setting a strong tone for the
upcoming holiday season.
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