We’re getting into the spooky spirit for this Power to the Pricing People episode and looking at what we can expect from consumer spending and pricing this Halloween.
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Record-Breaking Halloween Spending Predicted
In sweet news for brands and retailers, more US consumers are expected to be trick or treating than ever this year. The National Retail Federation’s annual survey predicts that a record $12.2 billion will be spent on Halloween treats, outfits and decorations. This is up from a little over $10 billion last year.
Parties are expected to be on the rise this year, with more than three quarters of adults celebrating the holiday. Spending on decorations is expected to reach $3.9 billion. Costumes are expected to be the biggest revenue generator, bringing in an anticipated $4.1 billion.
Trending Costumes Reflect Pop Culture Moments
While classic costumes like witches, zombies, and superheroes remain Halloween staples, this year’s hottest looks are inspired by recent pop culture hits. Think yellow Minions, Barbies in hot pink Corvettes, and of course the heroic moustachioed plumber himself, Super Mario. These costume trends provide a fun glimpse into what entertained us on screens big and small over the past year.
But it’s not all sweet treats. With sugar prices at a blood-curdling 12-year high, the cost of that Halloween candy haul could be frightening. According to one analyst’s report the price of chocolate is up 20%, liquorice 22% and gummies 15% from last Halloween.
Sugar Shortage Spikes Halloween Candy Costs
Extreme weather has dealt major blows to the sugar industry worldwide this year. Droughts and extreme heat have impacted the production of dozens of food crops. According to the International Sugar Organisation, the shortage has pushed up prices by 42% in the past year.
For food manufacturers, these unpredictable conditions could spell trouble for keeping prices stable. If you’re feeling spooked by the rising cost of raw ingredients then talk to us to make sure your pricing can keep pace.