Retailers Brace for Unexpected Shifts in Halloween Consumer Spending

Spirit Halloween, the leading Halloween retailer in the U.S., has revealed the most popular costumes for the upcoming holiday, heavily influenced by Hollywood hits. This trend is anticipated to have a similar impact on Australian retailers due to the widespread popularity of these franchises.

Costumes based on characters from the Marvel movie *Deadpool & Wolverine* are currently the frontrunners, following the film’s unprecedented success as an R-rated release this year. The popularity of these costumes extends beyond adults; pet costumes, especially Dogpool and Ladypool, are trending as well, highlighting the expanding market for pet-related items in Australia.

For families looking for group costumes with a more wholesome vibe, characters from *Inside Out 2* — Anxiety, Sadness, and Disgust — are gaining traction. The film’s title as the year’s highest-grossing movie has further influenced costume sales, a trend likely to reflect in Australian retail as the film continues to excel internationally.

In addition, the cult classic *Beetlejuice* remains a timeless favorite. Spirit Halloween provides a wide array of costumes from the film, including Beetlejuice, Lydia, and Astrid, appealing to fans of the beloved movie. Australian retailers may also experience interest in these nostalgic costumes, given the film’s robust global fanbase.

Last year, Barbie and Spiderman led the costume sales, as reported by Google’s Freightgeist tool that monitors costume trends. However, this year’s spotlight has shifted toward more contemporary pop culture icons, illustrating the ever-changing nature of consumer tastes in both the U.S. and Australia.

Steven Silverstein, CEO of Spirit Halloween, stated, “Halloween is not merely a holiday – it’s about where one’s imagination can take them, and we are eager to see how our fans interpret these trends and make them their own this year.” This perspective is likely to resonate with Australian shoppers, who are progressively recognizing Halloween as a key retail occasion.

For those less inclined toward movie characters, alternative popular costume selections include Mob Wife, Country Chic, and the trending couple’s costume of Travis and Taylor, which might also find a following in the Australian market.

Halloween spending and consumer behavior insights

Halloween continues to be a significant retail occasion, with spending patterns providing essential insights for Australian businesses. The National Retail Federation (NRF) indicates that U.S. consumers are anticipated to spend around $10.8 billion on costumes alone this year. Although Australia’s Halloween market is comparatively smaller, the rising excitement for the holiday suggests that local retailers could experience similar phenomena, particularly in costume sales and decorations.

Overall, U.S. Halloween expenditures are expected to reach $16.6 billion, marking a 5% decrease from last year’s $17.4 billion. This downturn in spending may be linked to broader economic issues, such as inflation and increasing living costs, which are also affecting Australian families. Retailers in Australia might need to revise their strategies, providing more budget-friendly choices or early discounts to engage consumers.

Notably, 47% of U.S. consumers intend to begin their Halloween shopping before October, with the 25-34 age demographic leading this trend. The early shopping behavior is also gaining traction in Australia, especially among millennials who are propelling the holiday’s rising popularity. Retailers should enhance their marketing initiatives well ahead of October to take advantage of this early buyer segment.

Despite the slight dip in total spending, 72% of U.S. consumers still plan to celebrate Halloween this year, only down 1% from last year’s record of 73%. Popular activities include distributing candy (67%), decorating homes or yards (52%), donning costumes (49%), carving pumpkins (43%), and attending or organizing parties (29%). These trends resonate in Australia, where Halloween is increasingly viewed as a chance for social interactions and community involvement.

For Australian retailers, the key insight is that while total spending may be somewhat reduced, consumer excitement for Halloween remains robust. By offering a variety of affordable and high-end items, and capitalizing on the early shopping trend, businesses can still secure a significant portion of the Halloween market.