Published
October 29, 2024
As the leaves turn and the air grows crisp, Americans eagerly prepare for one of the most anticipated holidays of the fall: Halloween.
Beyond the candy, costumes, and decorations lies a robust network of American businesses that make this festive occasion possible. From local entrepreneurs to large-scale manufacturers, the American business community plays a crucial role in creating the magical thrills and chills of a memorable Halloween for Americans across the country.
The Eerie Economic Impact of Halloween
Halloween is more than just a day of fright; it’s a monstrous economic event. According to the National Retail Federation, total Halloween spending in 2024 is projected to reach $11.6 billion, surpassing pre-COVID levels. NRF estimates that 72% of Americans plan to partake in varied forms of celebration.
- 77% of celebrants intend to buy decorations,
- 67% plan to hand out candy to trick-or-treaters, and
- 49% plan to dress in costume
Among Gen Z and Millennial shoppers, families, and urban residents, 61% plan to dress up in frightfully delightful costumes.
Shoppers plan to use a wide variety of U.S. businesses to ensure they have all their Halloween goodies. American consumers plan to shop at:
- Discount stores (37%),
- Online vendors (33%),
- Specialty Halloween stores (33%), and
- Grocery stores/supermarkets (28%)
This seasonal surge in spending supports a wide array of industries, including retail, manufacturing, and logistics, highlighting Halloween's fang-tastic influence on the U.S. economy.
Hauntingly Ahead: Halloween Shopping Begins Before October
The pervasive early shopping trend among American consumers continues, with 47% starting their Halloween shopping before October. That's an increase from 37% just five years ago.
Mars Wrigley reports that on average, consumers are planning for Halloween 5.2 weeks in advance, with Gen Z and Millennials planning much further in advance (6.8 weeks before Halloween). This growing inclination is supported by retailers like Home Depot, which has begun to advertise Halloween items as early as April, marketed as a “Halfway to Halloween” sale.
Frightful Fashion: What’s Trending for 2024 Halloween Costumes
Costumes play a pivotal role in Halloween celebrations, with an estimated $4.1 billion spent on children's and adult costumes this year.
With nearly half of all Americans planning to celebrate in costume this year, NRF notes that Spider-Man, witches, and pet-friendly outfits are the most popular choices.
Don’t forget about the furry family members. Gen Z and Millennials are leading the pet-costume craze to make for boo-tiful Halloween experiences, with 1 in 4 dressing up their animal companions.
As consumer demand grows, small businesses and major retailers have adapted by introducing a wider variety of costume options across various price points, including DIY kits for the crafty consumer.
In-store shopping remains the dominant channel for costume purchases, though digital channels are gaining traction, contributing to another recent shopping trend: mixed-channel purchases.
Ghoulish Goodies: The Sweets that Make Halloween Rememberable
Trick-or-treating and candies continue to endure as a scarily sweet Halloween essential.
The National Confectioners Association (NCA) reports that Halloween drove $6.4 billion in confectionery retail sales in 2023, and that number is expected to climb by three to five percent in 2024. NRF and Mars Wrigley similarly echo candy’s role as the predominant driver in Halloween fun:
- 95% of Americans plan to celebrate with sweets
- Consumers indicate that candy is the number one contributor to a positive Halloween experience
Chocolates top the Halloween wish list, with 81% of consumers purchasing them. They are followed by chewy/gummy candies and mixed bags of sweets. Unsurprisingly, trick-or-treating remains the main attraction for Americans, with 97% expected to hand out candy this year.
Halloween is much more than candy, as Americans showcase festive food items like "ghost pizza," "spooky spaghetti," and “eyeball cookies.”
As “spooky season” is one of the busiest holidays of the year, NCA shows just how interconnected the American business community is when coming together to support cultural events: one U.S. confectionary job supports eleven other American jobs. With candy being the centerfold in Americans’ Halloween festivities, the confectionary industry remains a key economic powerhouse that delivers a particularly sweet holiday to consumers across the country.
The Bottom Line
Halloween is not just a fun holiday; it’s an economic surge, driving billions of dollars in consumer spending and showcasing the ingenuity of the American business community. Families preparing to celebrate with candy, costumes, and decorations are supported by a dynamic ecosystem of businesses that make it all possible.
As you enjoy either tricks or treats, remember the countless American manufacturers, retailers, and employers working tirelessly behind the scenes to keep the spirit of Halloween alive. Their efforts contribute to a holiday that is as much about economic growth as it is about fun and fright.
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About the authors
Nicholas Molinari
Nicholas Molinari is an associate manager for the Tax and Economic policy teams at the U.S. Chamber of Commerce.
