Once dismissed as a fading tradition, Halloween has transformed into a massive consumer holiday, with 2024 spending expected to reach $11.6 billion. This shift has turned a once-simple celebration into a retail juggernaut, firmly entrenched in American culture and increasingly embraced worldwide.
Historically, Halloween had humble beginnings, tracing its roots to the Celtic festival of Samhain and the Catholic All Saints’ Day. It arrived in the United States in the 1840s with Irish and Scottish immigrants, but it wasn’t until the mid-20th century that the holiday began its metamorphosis into an economic force. In the 1970s, the combination of mass-manufactured costumes and individually wrapped candy made Halloween more accessible and appealing, driving its popularity.
Retailers quickly realized the holiday’s potential. Today, Halloween offers a perfect blend of predictability and pop culture-driven trends. Unlike other holidays, Halloween falls on the same date every year, allowing stores to plan early. The need to replenish candy annually and the revolving trends in costumes ensure a steady stream of consumer demand. Costumes, in particular, have become a key driver of spending, as each year brings new must-have looks inspired by movies, television shows, and viral internet trends.
While Halloween was once mainly for children, its appeal has grown significantly among adults, especially millennials and Generation Z. This shift has played a crucial role in driving spending, with adult costumes, parties, and decorations becoming a staple of the holiday. The tradition of dressing up, initially reserved for children, has expanded to include parents, college students, and young professionals looking for any excuse to celebrate.
Big retailers have capitalized on this, with companies like Spirit Halloween leading the charge. What started as a small chain of pop-up stores in the late 1980s has now grown into a sprawling network of over 1,500 locations across the U.S. and Canada. Spirit Halloween has turned holiday shopping into an immersive experience, where customers can interact with elaborate displays and try on costumes in-store.
Other retailers have followed suit, with Home Depot becoming a major player in Halloween merchandise. Known for its giant 12-foot skeleton named “Skelly,” Home Depot has turned Halloween into a year-round event, introducing “Halfway to Halloween” sales in April and pushing holiday displays as early as August.
The rise of Halloween spending is not limited to the U.S. The holiday has begun to gain traction in other countries, adapting to local customs while maintaining its focus on costumes, candy, and haunted experiences. As Halloween continues to evolve, its global reach is expanding, proving that a holiday once thought to be in decline is only getting stronger.
From children’s costumes to massive retail displays, Halloween’s transformation into a retail phenomenon shows no signs of slowing down. The spooky season has become a key event for businesses and consumers alike, cementing its status as one of the top holidays in terms of economic impact.