Halloween Spending Set to Reach Record Levels

As Halloween approaches in just under a month, Americans are set to reach record levels of spending, according to a new report from the National Retail Federation.

Exceeding pre-pandemic levels, the organization estimated Americans would spend a whopping $12.2 billion, roughly $2 billion more than last year's $10.6 billion spent on the holiday.

The prediction comes as 73 percent of Americans plan to participate in Halloween-related activities, up from 69 percent last year.

"More Americans than ever will be reaching into their wallets and spending a record amount of money to celebrate Halloween this year," NRF President and CEO Matthew Shay said in a statement. "Consumers will be shopping early for festive decor and other related items and retailers are prepared with the inventory to help customers and their families take part in this popular and fun tradition."

The money spent on Halloween activities can go toward a variety of different avenues.

The vast majority, 68 percent of Americans, plan to hand out candy, while a little more than 50 percent will splurge on decorations for their homes. The cost of candy alone is set to reach $3.6 billion, up from $3.1 billion last year.

The costs will also increase as 50 percent plan to dress up in a costume. Meanwhile, 32 percent are going to throw or attend a party, and 28 percent say they will be taking their children trick-or-treating.

According to the report, per-person spending is set to reach a record $108.24 each, whereas consumers only spent $102.74 in 2021.

So what's really driving the spending hike? For a large percentage of Americans, especially younger ones, it's costumes.

The report found 69 percent of those celebrating Halloween will be buying costumes, while only 67 percent did last year. Costumes alone were projected to reach $4.1 billion compared to $3.6 billion last year.

Decorations spending is also up, expected to reach $3.9 billion, as 77 percent of those celebrating indicated they would be buying decorations. In 2019, that number was only 72 percent, showing more Americans have prioritized holiday decorations since the onset of the pandemic.

American consumers are also starting their Halloween shopping sooner than in previous years, the report found.

"Younger consumers are eager to begin their Halloween shopping, with more than half of those ages 25-44 planning to shop before or during September," Prosper Executive Vice President of Strategy Phil Rist said. "Social media continues to grow as a source of costume inspiration for younger consumers, as more people under 25 are turning to TikTok, Pinterest and Instagram for ideas."

While some might think dressing up is a child's game at Halloween, adult consumers are prepared to spend on their own costumes, the survey found. In fact, spending on adult costumes is estimated to jump by 18 percent to $2 billion, while children's costumes surge by 20 percent to $1.4 billion.

Top Costumes This Year

Every year, some costumes steal the show. For children, expect trick-or-treaters in Spiderman, princess and ghost apparel as these were the top three costumes planned for Halloween 2023 at 2.6 million, 2 million and 1.6 million respectively.

A majority, 75 percent of adults, also already know what they plan to dress up as. Fan favorites like witch and vampire continue to bring in a high number of adults at 5.8 million and 2.4 million.

But as it is the year of Barbie, a whopping 1.8 million Americans said they would be dressing up as the Margo Robbie character and legendary doll.

Halloween Horrors

While Halloween usually promises to be a fun and festive holiday for families, many parents have admitted they still check their children's candy bags for any potential razor blades, drugs or glass.

Over half of parents inspect the candy's contents for these nefarious items, but the true horror story might just be related to children's tooth incidents from their Halloween candy, a study from Shiny Smile Veneers found.

When it came to dental care, Jawbreakers, Jolly Ranchers and Bit-O-Honey proved to be the most dangerous. They can easily lead to tooth pain and damaged fillings or crowns, the organization found, with more than a third of Americans indicating they had experienced this type of incident.

In total, Americans spend $538.28 on average to fix their teeth after dental accidents caused by candy, meaning the sweets in your Halloween pillowcase could have some serious financial consequences down the road.

If you're still considering which candy to buy for trick-or-treaters this season, Americans also have a few favorites you might want to add to your bag. The top three were as follows: Reese's Peanut Butter Cups, M&M's and Kit Kats.

At the bottom, Americans ranked candy corn, Hot Tamales and Atomic Fireball as the worst candies to receive during the holiday.