Trick or treat? Halloween spending set to decline this year

Photo by Kenny Eliason on Unsplash

This year, shoppers will have seen Halloween products showing up on their shelves earlier than expected. Part of this is in response to the ongoing cost challenges, with snack manufacturers promoting their Halloween lines earlier to give consumers more time to budget and shop. 

Carl Quash III, head of packaged foods, snacks and nutrition at Euromonitor International, said: “The National Retail Federation (NRF) estimates that overall spend on Halloween will decline this year versus last year. However, the confectionery category is expected to remain steady, as it is an essential part of the core season's celebrations of trick-or-treating.”

Affordable indulgences will keep the Halloween magic alive

With global cocoa and sugar prices skyrocketing and with chocolate prices rising 17% in the US over the past two years, cost-saving strategies will likely be deployed this year and possibly result in a step up in non-chocolate confectionery sales during the Halloween season. 

Quash said: “Globally, seasonal chocolates hold the highest average unit prices and are expected to see the steepest price hikes among all confections. With that in mind, chocolate products from private labels and non-seasonal chocolate pouches and bags may be welcomed replacements to Halloween-themed chocolates this year. This is a prime opportunity for brands to innovate and deliver delightful, affordable indulgences to bring growth to that sector and that keep the magic of Halloween alive. 

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“We are also witnessing a shift towards non-chocolate alternatives that cater to evolving consumer preferences. Pastilles, gummies, jellies and chews category is outpacing growth of seasonal chocolates across several key markets such as Canada, Mexico and the UK given their lower price points and ability to deliver on indulgent sensory demands,” said Quash. 

Food and beverage manufacturers' future growth strategy includes targeting new consumer segments and occasions with existing products, according to Euromonitor International's Voice of the Industry Key Consumer Insights. 

For Halloween, this translates into manufacturers looking beyond the saturated, core US market and considering the relevant demand for ‘treating’ across new markets.  

Quash said: “There are other nations around the globe that celebrate Halloween or some other holiday around the end of October/early November, and each country has its own unique traditions that often favor traditional foods over chocolate and sugar confectionery snack consumption.

“Markets like India, Brazil, Poland and the Philippines where Halloween celebrations are budding, particularly among younger consumers, understanding the importance of local traditions first and foremost will help manufacturers begin to adapt treating opportunities to meet the nuanced demand each market expects.” 

Good time for collaborations in the make-up industry

The beauty industry has been witnessing a surge in makeup collections inspired by popular culture and not tied exclusively to Halloween.

Kayla Villena, head of beauty and personal care research at Euromonitor International, said this trend not only enhanced consumer engagement on social media with makeup challenges regularly trending on TikTok and Instagram, but also allowed brands to tap into the nostalgia and excitement associated with beloved characters and special occasions.

Villena said: “This year, we see beloved characters from Wicked to Beetlejuice inspiring makeup trends that invite consumers to explore their creative sides. Brands like ColourPop, with their collections from Stranger Things and Haunted Mansion, and NYX, getting ahead of the popularity of Beetlejuice timed with the movie, are harnessing this moment with collaborations that spark joy and excitement.” 

Beyond Halloween, the fall season presents an opportunity for Foodservice

The fall season is a transformative time for restaurant menus as they embrace seasonal ingredients like pumpkin, squash and mushrooms, with limited-time offers historically highly sought after by consumers.  

Stephen Dutton, Client Insight Research Manager at Euromonitor International, said: “Fast food chains are tapping into this by launching products that excite consumers and leveraging loyalty programs to deliver exclusive promotions. This means you can access promotions but only if you're a user of the app or a loyalty program member and that may help drive traffic to the app which is good for long-term brand engagement.

“Utilizing mobile apps and loyalty programs allows brands to deepen their connection with customers. As consumers increasingly turn to technology for convenience, there’s an expectation that restaurants will integrate these tools into their marketing strategies to build lasting brand loyalty and drive traffic beyond peak seasons like Halloween, which is important given how highly competitive fast-food brands are on price.”

Dutton said this is an excellent time for restaurants to innovate, offering products that not only draw customers in but also encourage them to explore new flavors and experiences.

“Besides helping fast food chains enhance customer engagement, this also attracts consumers looking for budget-friendly treats, as those limited editions can feel more indulgent than the regular offerings. It's also something that consumers rave about – like it’s finally pumpkin-spiced latte season!”