Happy Halloween!

Halloween is the second-biggest retail holiday in the United States, behind only Christmas.  Last year, Americans spent about $10 billion on Halloween items, and each American household spent an average of $102 for Halloween candy.

Why is Halloween growing in popularity?  Dr. Jadrian Wooten, a Virginia Tech professor of economics, surmised, "It's a holiday that combines retail and entertainment. It's the ultimate spending combination."  The nature of Halloween means that families celebrating will likely have to make many new purchases each year: larger costumes as children grow bigger, new candy, and new decorations, just to name a few.  Some economists have argued that the state of the economy affects the Halloween industry more than Halloween affects the state of the economy.  In a down economy, for instance, consumers may be less likely to spend money on the extra frivolous things during the holiday season.

You might have noticed an increase in candy prices this year.  For the second year in a row, Halloween candy has seen double-digit inflation.  Candy and gum prices are up an average of 13% this month compared to last October, more than double the 6% increase in all grocery prices, according to Datasembly, a retail price tracker. And that's on top of a 14% increase in candy and gum prices in October 2022.  Weather is the main culprit for these higher prices. Cocoa prices are trading at 44-year highs after heavy rains in West Africa caused limited production in the season that began last fall.  El Nino conditions are making the region drier and are likely to linger well into the spring.  In addition, global sugar prices are at 12-year highs.  India, the worl's second-largest sugar producer after Brazil, recently banned sugar exports for the first time in seven years after monsoon rains hurt their upcoming sugar harvest.

In response to the price increase, some consumers are changing what they buy.  Numerator, a market research firm, said its surveys show about one-third of U.S. consumers plan to trade down to value or store brands when buying candy for trick-or-treaters this year.

Candy corn is a divisive Halloween candy, coming in at number eight on several popularity lists.  Market leader Brach's makes roughly 30 million pounds of candy corn for the fall season each year - enough to circle the planet about five times!  According to the consumer research firm Circana, last year saw about $88.5 million in all candy corn sales.  But when compared to the top chocolate sellers, candy corn is a niche market.

What are the most popular Halloween candies?  Across the United States, Hot Tamales come in at number 3, M&M's are the second most popular, and the favorite Halloween candy is Reese's peanut butter cups.  Skittles often rank high in the popularity lists too, and are the #1 Halloween treat in some states.

Are you looking for ways to save money this Halloween season?  Try reusing costumes or making them yourself, rather than buying new pre-made costumes.  Host a scary movie night at home, rather than go out to Halloween events that can cost $10-$20 per ticket.  Wait until closer to Halloween to buy pumpkins to carve, when they go on sale.  Buy candy in bulk; or choose to give out non-candy treats at your house.  Try stickers, bubbles, Play-Doh, or Pokemon cards.  In addition to being cheaper, they are allergy-friendly!