148 million consumers plan to participate in Halloween this year, according to the National Retail Federation's annual survey. Spending is expected to decrease by 8.3% in 2020, to $8.05 billion, compared to $8.78 billion in 2019. However, those individuals who will participate say they may actually spend up to 6.8% more. In 2019, the average spend was $86.27, and those who say they'll celebrate Halloween this year expect to spend an average of $92.12.
- 148 million consumers plan to celebrate Halloween in 2020.
- Total spending is expected to decrease to $8.05 billion, but the average person says they may spend up to $92.12 on Halloween this year.
- Those participating say they plan to decorate their homes (53%), carve pumpkins (46%), and dress up their pet (18%).
Why Is Halloween So Popular?
One reason for Halloween's popularity is that it's a more affordable holiday. The holiday season around Thanksgiving and Christmas often sees tens of billions of dollars spent. Shoppers are willing to spend money on something if it provides a lot of value, and holidays do.
|Halloween Spending 2012-2020|
|Year||Americans Celebrating||Average Spending Per Buyer||Total Spending*|
|2012||170 million||$79.82||$8.0 billion|
|2013||158 million||$75.03||$7.0 billion|
|2014||162 million||$77.52||$7.4 billion|
|2015||157 million||$74.34||$6.9 billion|
|2016||171 million||$82.93||$8.4 billion|
|2017||179 million||$86.13||$9.1 billion|
|2018||175 million||$86.79||$9.0 billion|
|2019||172 million||$86.27||$8.8 billion|
|2020||148 million||$92.12||$8.0 billion|
*Not all of those celebrating are buying anything. That's why "Total Spending" is less than "Average Spending" multiplied by the number of "Americans Celebrating."
What Are People Buying for Halloween?
Shoppers look to get a big bang for the buck, and Halloween delivers. What's the cost of a few bags of Halloween candy? Around 62% plan to hand out candy, spending up to $11 more on the sweet stuff, along with decorations, in 2020.
The most expensive part of Halloween tends to be costumes. 46% plan to dress up this year, down only slightly from 47% in 2019.
The top five costumes for adults in 2020 are expected to be a witch, vampire, cat, Batman, and ghost. The top five for children this year are princess, Spiderman, superhero, ghost, and Batman.
More people are buying costumes for their pets. The most popular pet costumes are pumpkin, hot dog, superhero, cat, and bumblebee.
The National Retail Federation works with Prosper Insight & Analytics for the annual survey. The company polled 7,644 consumers in September 2020. The purpose was to gauge consumer behavior and shopping trends related to Halloween spending. That helps the Federations' member retailers plan for the holiday. The consumer polls have a margin of error of plus or minus 1.1 percentage points.
How It Affects the Economy and You
Halloween sales can signal how well retailers may do during the all-important holiday season. The kick-off is Black Friday, which is about one month after Halloween. In 2019, 39% of shoppers had actually started their holiday shopping before November.
Strong retail sales can have an impact on the Fed and interest rates. The Federal Open Market Committee is always looking for signs of a healthy economy. Record-setting retail sales are a critical component.