Spooked by Inflation, Americans Slash Halloween Spending

Spooky season is underway, but this year it’s all tricks and no treats, with almost two-thirds of Americans planning to curtail Halloween spending after last year’s historic spending peak of $12.2 billion.

According to Lending Tree’s 2024 Halloween Spending Report, inflation is significantly affecting consumers’ holiday plans, and Americans are making cutbacks this holiday season.

How Does Halloween Spending Look in 2024?

According to the survey of 2,040 U.S. consumers, 59 percent of Halloween spenders plan to forgo purchases because of tighter budgets. Decorations, candy and party supplies are among the top categories consumers are cutting back on, with Gen Zers being the most likely to reduce their spending.

Lars Perner, an associate professor of clinical marketing at the University of California‘s Marshall School of Business, told Newsweek: “For a variety of reasons, inflation has been exceptionally high on food. This has been going on for years.”

“Hesitance to spend this year is probably due both to the perception that rapid inflation has been going on for quite some time and uncertainty, both over the election outcome and the economic outlook,” he continued.

“Although inflation overall is down significantly compared to 2021 and 2022, there is a perception that it is still high, and this can be aggravated by large increases in specific foods or other items for which a shortage exists. With the uncertainty of the election outcome and the implications of the outcome, many will likely hesitate,” Perner said.

Some Americans said they’d previously overspent during the holiday season, with the real ghost of Halloweens past being debt. Lending Tree reported that 28 percent of Americans said they’d gone into debt for spooky season purchases, and 17 percent expected to do so again. About half of those who overspent said they regretted doing so, the report said.

Perner said: “Many consumers plan to show restraint but then succumb to temptation as Halloween moves closer. This may especially be the case when children are asking for expensive costumes.”

“This will probably be the area where cutbacks will be more difficult since expectations of spending on costumes have increased over time,” he added.

How Does Spending Compare Year Over Year?

Halloween spending hit a historic high in 2023, with the National Retail Federation reporting that Americans spent a total of $12.2 billion on Halloween. This year, the NRF put Halloween spending at $11.6 billion.

According to the NRF, discount stores are the top destinations for Americans making Halloween purchases, with 37 percent making their seasonal purchases there. A further 33 percent shop at specialty stores, and another 33 percent shop online.

Despite inflation concerns, almost half of those surveyed by Lending Tree said they intended to splurge this Halloween season, and this year’s average spending is $10 more than last year’s—$172 compared to $162.

Men, millennials, parents of young children and high-income earners were among the biggest spenders, according to Lending Tree’s report.

So what are Americans buying this Halloween? According to the report, candy tops the list, with 59 percent of Americans planning to indulge. Twenty-three percent plan to purchase outside decorations, and 22 percent intend to buy children’s costumes.

“Halloween candy may be expensive this year, and I have not yet seen any major sales,” Perner said.

“Some people may either go for lower-priced items or smaller quantities, but if neighbors are accompanying their children, there will likely be some concern about coming off as cheapskates,” he continued.

“It is possible that bigger sales will emerge as we get closer to Halloween, but usually, these seem to be well underway by now,” Perner added. “Again, we may see early restraint that will falter as we get closer.”

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