Oct 312014
 

It’s that time of year again when we encourage kids to go beg for candy at random people’s houses. Yes, because taking candy from strangers when it’s dark outside is exactly the kind of thing we should be teaching children to do. 😛 Sometimes kids are forced to wear embarrassing costumes because parents think they look cute. Even animals are subject to such abuse. The National Retail Federation estimates that people will spend $350 million on Halloween costumes — for their pets. 😆 Some people make their own outfits, but it’s often more convenient to buy them from stores where the costumes are mask produced. 😀

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The Economics of Halloween

Halloween is big business. In the U.S. alone people anticipate spending an average of $80 this year on decorations, costumes, and candy, according to the National Retail Federation. That’s about 10% more than last year. Altogether Americans are expected to spend about $7.4 billion on Halloween in 2014. Which will be good for the economy. Below is a breakdown of the $7.4 billion U.S. Halloween spending by category.

  • Costumes – 38%
  • Candy – 30%
  • Decorations and Cards – 32%

October 31st is actually the chocolate industry’s most lucrative holiday for sales. More chocolate is purchased for Halloween than for Easter, Christmas, and even Valentines Day.

Chocolate will probably become more expensive in the future. It’s due to limited supply and a growing world wide demand. On the supply side the cocoa plant can only grow in very specific parts of the world, mainly near the equator in West Africa. Two countries in that area, Ivory Coast and Ghana, produce most of the global cocoa supply. It sounds like West Africa is a pretty sweet place to work in. 😀 But basically the production of cocoa cannot be easily scaled. And on the demand side consumers in developing economies of Asia and Latin American are quickly developing a sweet tooth for chocolate, with sales expected to increase by more than 20% over the next few years.

As global demand continues to increase the world’s largest chocolate manufacturers like Mars, Mondelez, Barry Callebaut, and Nestle have to raise prices in order to maintain their profit margins. Hershey has already announced they’ve increased their wholesale price this year by 8%. The global chocolate market is expected to grow from $83.2 billion in 2010 to $98.3 billion by 2016 at an estimated annual growth rate of 2.7% from 2011 to 2016.

Have a fun night everyone. 🙂 Stay safe. And for anyone who cares, just a friendly reminder to turn your clocks back on Sunday morning this weekend. 😉

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Random Useless Fact:
Many animal shelters won’t allow black cats to be adopted around Halloween, out of fear that they might be sacrificed or tortured during rituals.

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Oct 312012
 

Some people think Halloween is just a fun time for children to dress up and eat candy. Perhaps that was true at one point in time. But today Halloween is the second most expensive holiday of the year, rivaling only Christmas. Who would’ve thunk it. Halloween is a $8 billion industry in North America and is growing every year. That’s some serious business.

What’s driving all the spending? Simple modern consumerism lead by media, pop culture, and advertisers. People want to dress up as their favorite characters from this year’s hottest movies (Avengers, Hunger games, Spiderman, Batman, etc) You’ll also see zombies influenced by the Walking Dead, and of course, the Gangnam Style guy. It is not surprising why some Halloween specialty stores set up business only in October, sell their products, and then shut down in November. They only pay one month for rent to get a piece of the $2.9 billion pie that consumers spend on costumes each year.

It’s not just costumes for people either. 11% of Canadians are expected to spend up to $59 dressing up their dog. An average family will spend $300 on Halloween this year. That includes an average of $60 per costume, and the rest on decorations and greeting cards. Canadians are also expected to spend about $320 million worth of candy. Another survey anticipates 60% of all consumers will spend over $100 this year on decorations.

With treats, costumes, decorations, and parties, it’s no wonder that Halloween can rival Christmas in terms of consumer spending. This means we have to be careful about how we plan for it. Halloween, Thanksgiving, and Christmas are all within a couple months of each other (in the US anyway) Want to spend more money on Christmas? Consider spending less on Halloween this year :0)

Happy Halloween!