Halloween sales to generate $10.6 billion for U.S. economy – The Ticker

Halloween can give people a chance to dress up and collect candy, but it also provides an opportunity for businesses to capitalize on the celebrations and generate revenue.

Still facing the COVID-19 pandemic, consumers spent a total of $10.1 billion on Halloween in 2021, according to a survey by the National Retail Federation. Spending is expected to increase this year, with an estimated value of $10.6 billion.

While some consumers may wait until the end of October to buy their costumes, companies have started releasing their products as early as the summer.

Many retail chains, such as Target Corp. and Walmart Inc., began advertising campaigns for their Halloween products in late August.

Starbucks Corp. he used to get flak for selling his pumpkin spice lattes before fall even started. People thought it was too early for a pumpkin-themed decor, with the states still experiencing heat waves.

“You are not welcome until October”, a user who goes by @bagpipesandbeer tweeted about the seasonal drink in August 2014.

Starbucks brought the drink back to stores this year on August 30, three days later compared to 2021.

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Many companies have followed suit, introducing their own pumpkin-spiced drinks and snacks to their menus and store shelves. Dunkin’ brought back its fall menu items to locations this year on August 19th.

The products available to consumers in stores range from Halloween-themed grocery items, costumes, home decor, candy, and pumpkins. Pumpkins themselves are a whole section of profitable opportunities for farmers before winter.

Finder data analyst Catherine Choi has estimated that 149 million Americans – nearly half of the US population – intend to buy pumpkins to carve into jack-o-lanterns. This is an increase of 146 million Americans in 2021.

However, retailers may struggle with demand due to the economy and ongoing climate crises affecting supply.

Global pumpkin supply in 2021 was impacted by extreme weather conditions and supply chain disruptions. Droughts affected crops that were planted in early spring and late summer, and farmers were unable to harvest the amount needed to satisfy customers.

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In contrast, the global supply of pumpkins this year is impacted by a long, hot summer with extreme heat spikes.

“The weather is so extreme,” Becker Farms co-owner Melinda Vizcarra told Lockport Union-Sun & Journal, adding that she expects the pumpkins on the farm in upstate New York to be smaller.

“We spent a lot of time without punctual rain. I know south of Buffalo they were getting a lot of rain, but here in Niagara County, we were dry. It’s either too wet or too dry. We don’t have the good middle ground like we used to.”

In addition to smaller pumpkins, customers may also face a possible shortage of candy, due to the pandemic.

During a second-quarter sales conference call, Michele Buck, CEO of The Hershey Co., said the company expects consumers to spend a lot over the upcoming holidays, but despite demand, “it will not be able to fully meet consumer demand due to to capacity constraints”.

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Hershey’s also mentioned the effects of the Russian invasion of Ukraine as a risk factor for its business performance. The war between the two countries made it difficult to maintain the supply of chocolate ingredients.

The bullet maker also obtains its equipment from Germany, a country dependent on Russian energy, and is cut off from it.

While Hershey started its production of Halloween candy in early spring to account for the possible loss in product supply, it’s still not sure if trick-or-treating will run out of candy this year.

This Halloween might not be everything people were hoping for. However, the National Retail Federation still projects that 69% of Americans will participate in Halloween festivities, including trick-or-treating.

Party City Holdco Inc. hired 20,000 seasonal employees in anticipation of a wave of costume-seeking customers. Homeware retailers such as Lowe’s Companies Inc. and The Home Depot Inc., to aim to enjoy the spooky decor for lawns and parties. In appearance, this Halloween will be a celebration with hopeful costumed shoppers.



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