The october festival of Halloween has grown to generate over $10 billion in sales for merchants.
Annual Halloween festivities have intoxicated American neighborhoods, with homeowners increasingly adorning their homes with an array of larger-than-life decorations. Such as skeletons, inflatable characters, animatronics, and miscellaneous spooky embellishments during October. The fervor for Halloween has significantly escalated over the years, transforming it into a lucrative opportunity for retailers as more consumers partake in the celebrations.
According to a survey conducted by Prosper Insights & Analytics and the National Retail Federation, a staggering 69% of consumers are expected to participate in the spooky season this year, leading to an anticipated $10.6 billion spend on decorations alone, representing an increase from $10.1 billion in 2021. The survey reveals that outdoor decorations rank as a favorite way for consumers to commemorate the holiday, second only to candy.
Similarly, a LendingTree survey disclosed that 87% of consumers will be engaging in Halloween activities this year, showing a 16% uptick compared to the previous year, with almost 40% intending to invest in outdoor decorations. However, the tradition of extravagant Halloween decorations didn't begin in this era.
The roots of Halloween originate from centuries ago and gained popularity in North America following the migration of Irish and Scottish immigrants in the 19th century. By the early 1900s, Halloween was primarily an event where adults hosted extravagant parties, playing games, adding inexpensive, disposable decorations, and subsequently discarding them post-party.
During this period, three major manufacturers dominated the decoration market: The Beistle Company, Dennison Manufacturing, and Gibson. Dennison, based in Framingham, Massachusetts, published the "Bogie Book," which offered guidance for consumers planning, preparing, and decorating for Halloween parties. However, as time progressed, the focus shifted towards a family-friendly approach to the holiday.
At its core, Halloween was initially designed for adults, but as the years rolled by, it started to cater more exclusively to children - thanks to parents hosting children's parties and schools incorporating Halloween activities. As the focus shifted, decorations gradually depicted friendlier imagery, further emphasized by the introduction of characters like "Wendy the Good Little Witch" and "Casper the Friendly Ghost" by Harvey Comics.
In 1958, First Lady Mamie Eisenhower festively adorned the White House for Halloween, introducing themes like skeletons, jack-o'-lanterns, dried corn, and pumpkins to the celebration. While grandiose outdoor displays became commonplace in homes decades later, during the 1960s, '70s, and even '80s, it was rare for homes to feature any Halloween decorations.
With the advent of popular horror movies like "Halloween," "Friday the 13th," and "A Nightmare on Elm Street," Halloween products evolved to become more violent and gory. In recent years, the prevalence of large outdoor displays has only amplified.
The burgeoning appeal for Halloween decorations amongst consumers can be attributed to the rise of mass merchants and other big-box retailers that now stock seasonal merchandise. These retailers increase their assortment of Halloween and fall items to cater to increasing demand, providing an alternative bridge between the spring season and the late-year holiday rush.
For instance, Home Depot increased its overall Halloween and fall assortment during September and October by 104% year-over-year in 2022, with products like a 12-foot hovering witch, a 9.5-foot werewolf, and a 15-foot phantom fetching high prices on resale sites. The competition among homeowners to create impressive Halloween displays has stimulated consumer interest and expenditure in the category.
This year, millennial consumers plan to spend $255 on Halloween, followed by Gen Z, Gen X, and baby boomers. The surge in Halloween popularity among younger generations can be attributed to the rise of social media, contributing to more consumers investing in decorations for the occasion. However, inflation and other economic pressures might ultimately send demand for excessive decorations down.
- Artificial intelligence (AI) could predict the increasing demand for Halloween decorations based on the trends and historical data, helping retailers to stock their stores effectively.
- As entertainment evolves, we might witness a fusion of technology and Halloween, such as interactive animatronics or digital projection mapping on houses, enhancing the overall Halloween experience.
- With homeowners striving to create competitive and extravagant Halloween displays, the influx of innovative products in the fashion-and-beauty sector could provide unique costumes and accessories, adding an additional element to the festivities.
- In line with the growing popularity of Halloween, businesses could leverage this time to launch new products, services, or marketing campaigns to capitalize on the increased consumer spending.
- The culture around Halloween has expanded throughout the months of October, incorporating home-and-garden decor for the earlier part of the month, creating a prolonged experience for consumers.
- As the tradition of extravagant Halloween decorations continues to evolve, the law might need to address safety concerns related to electrical hazards or structural damage caused by the large and elaborate displays.
- Inflation and economic pressures could impact the business models of retailers, as consumers might scale back their Halloween spending due to financial concerns. This could necessitate policy changes to support small businesses during the peak season.
- The growth of Halloween celebrations could also impact the finance industry, as increased consumer spending during the holiday season might influence savings patterns, mortgages, loans, or credit card debt.
