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

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

Despite 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 grow to an estimated $10.6 billion this year.

While some consumers are waiting until the end of October to buy their costumes, companies began releasing their products as early as the summer.

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

Previously, Starbucks Corp. a backlash for selling its signature Pumpkin Spice Lattes before fall even started. People thought it was too early for a pumpkin-themed decoration as the states are still enduring heat waves.

“You’re only welcome in October,” one user who goes by @bagpipesandbeer tweeted for the seasonal drink in August 2014.

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

Also Read :  The end of the Goldilocks economy

Many companies followed suit, introducing their own pumpkin spice drinks and snacks onto their menus and store shelves. Dunkin’ returned its fall menu items to locations this year on August 19th.

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

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

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

Global pumpkin supply in 2021 has been impacted by extreme weather conditions and supply chain disruptions. Droughts affected crops grown in spring and late summer, and farmers were unable to harvest enough to satisfy customers.

Also Read :  Talent Agents Power the Influencer Economy

In contrast, the global supply of pumpkins this year will be affected by a long and hot summer with extreme heat peaks.

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

“We drove for a long time without rain in time. I know it rained a lot south of Buffalo, but we were dry here in Niagara County. It’s either really wet or really dry. We don’t have the nice in-between times like we used to.”

Aside from smaller pumpkins, customers could also face potential candy shortages due to the pandemic.

During a second-quarter sales call, The Hershey Co. CEO Michele Buck said the company expects consumers to spend heavily in the upcoming holiday season, but despite demand “will not be able to fully meet them.” Consumer demand due to capacity constraints.”

Hershey’s also cited the impact of the Russian invasion of Ukraine as a risk factor for its business development. The war between the two countries made it difficult for the company to maintain supplies of ingredients for chocolate.

Also Read :  The 12 points of the 'Francis Economy' Pact – Exaudi

The candy maker also sources its assets from Germany, a country that depends on and is cut off from Russian energy.

Though Hershey began its production of Halloween candy in early spring to offset the potential loss of product supply, it’s still uncertain if trick-or-treating will be short on candy this year.

This Halloween may not be everything people expected. However, the National Retail Federation still estimates that 69% of Americans will participate in Halloween celebrations, including trick-or-treating.

Party City Holdco Inc. rented 20,000 seasonal workers in anticipation of a rush of customers looking for costumes. Home improvement retailers such as Lowe’s Companies Inc. and The Home Depot Inc. target to capitalize on spooky decor for lawns and parties. Apparently this Halloween will be a celebration with hopeful costumed consumers.


Leave a Reply

Your email address will not be published.