Retail spending for Halloween 2023 is expected to hit a whopping $12.2 billion. That’s $1.6 billion more than last year’s $10.6 billion. This estimate comes from the National Retail Federation annual survey conducted by Prosper Insights & Analytics.

            On the surface, it makes sense. In the midst of inflation, the cost of everything has gone up. The price of a bag of candy is not what it was last year. Same goes for the costumes and decorations. Yet, it does appear that more American consumers are not only willing to participate in Halloween festivities, but they’re also willing to spend more. 

            The bottom line is that Halloween has simply grown in popularity. Consumers will spend an unprecedented $108.24 per person, and a record 73% of consumers plan to celebrate Halloween this year, up from 69% last year. Katherine Cullen, NRF vice president of industry and consumer insights, said “…if we look before the pandemic, before lockdowns and all of that happened, just 68% of adults were celebrating. So, we’ve really seen an increase in the holiday’s popularity, and that is what’s driving spending this year.” All generations are celebrating, not just kids and college students. 

            Home decorating is bigger than ever, in more ways than one. Perhaps it is a lingering effect of the pandemic when people were “nesting” and putting lots of money into home improvement and betterment projects. But folks are really ramping up the decorating, not just with a few pumpkins here and there, but with large inflatables, statues and elaborate scenes. Stefanie Lucas, president of Qurate home décor and furnishings brand Grandin Road, says “What’s changed these last few years, post-COVID, is that people are going all out on décor… It’s more ebullient, it’s bigger, more over the top.”

            Some experts say this may be a good indicator for the way the holiday shopping season will pan out. “Halloween may tell us how consumers are feeling about commemorating special events throughout the year,” Cullen adds. “Is this something consumers are prioritizing, even in the face of inflation, as they cut back in other areas of their lives?” In these hard economic times, people are still want to make the holidays a time to remember. 

            Another trend that may follow for the holiday season is the timing of when consumers begin shopping. For Halloween, buying began early. As soon as the back to school shopping season was over, Halloween sales began to shoot up. Nearly half (45%) of those celebrating the holiday planned to start shopping before October. This is on par with last year, but up from 33% a decade ago. Again, it’s safe to say part of this is another lasting effect of Covid, with shipping speeds and supply chain issues still not at pre-pandemic levels. Consumers have learned that they cannot wait until the last minute.  

            So, advice for holiday marketers – don’t be afraid roll out your plans early (like now) and be prepared with your inventory. Consumers are most likely looking to get a head start on checking items off their shopping lists. They are willing to spend, but they are still looking for deals and discounts to cut corners wherever they can. So be generous with your offers and you might be more surprised with your holiday sales outcome than previously anticipated. 

            And now, just for fun… here are the top costumes for children, pets and adults! Is yours on this list?

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