Michelle Dieckelman
Mrs. Straub
AP Economics-Insight
19 October 2015
Candy, Costumes, Decorations, Oh My!
Every year, little kids run around from house to house in different costumes in hopes of free candy. Halloween is the 2nd largest celebrated holiday in the United States. During this time, people are able to dress up and be someone they are not. Others think of this time to be able to receive free candy from people. What’s better than getting free candy and dressing up? Some Americans aren’t able to wait for this holiday and even begin shopping for products before September (Reynolds). Some people chose to shop before others to gain the competitive advantage over others who chose to shop later.
According to Amy Roberts over 157 million Americans will celebrate Halloween this year. During the fall season, the demand for any Halloween product goes up. In order to meet the demand and not cause a shortage, the producers have to increase their supply of the Halloween products. If a company chooses not to produce more Halloween products, the opportunity cost would be less money for the company.
Most of what consumers choose to spend their money on during Halloween is costumes, candy, and decorations. Halloween decorations are a big part of what makes Halloween, Halloween. If there weren’t any pumpkins, Halloween would not be the same. Over 50,900 acres of pumpkins were harvested in 2013 (Roberts), showing an increase from 2012 in the quantity supplied of pumpkins. Without candy, there would be no trick-or-treating. The trade-off of not trick-or-treating is not receiving any candy. Costumes are a large part of Halloween, making it different from other other holidays. Over 44% of people choose to dress in costumes (Reynolds). As the demand for Halloween costumes has been increasing, some stores have decided to even sell costumes for pets. Over $370 million will be spent this year on Halloween costumes for pets (Roberts). The scariest costume for pets this year is a pumpkin. Pet costumes are becoming a big business, as shown in this video-(Down and to the left on the website) (Roberts).
Overall, Halloween is a widely celebrated holiday that many businesses look forward to, since they gain large amounts of profit. As stated by Treacy Reynolds, each year it is estimated that an average person spends $74.34 on Halloween products. Many people can’t wait for Halloween and love celebrating it. As shown in the picture below, more people are spending money than those celebrating it, creating an even higher profit for Halloween. Although Christmas is the largest celebrated holiday in the United States, Halloween trails slowly behind. Everything that goes with Halloween plays a role in the profit earned each year. Halloween is the scariest of the holidays and always provides a fun experience. 
Works Cited
Reynolds, Treacy. “157 Americans Will Celebrate Halloween This Year.” National Retail Federation. NRF, 23 Sept. 2015. Web. 19 Oct. 2015.
Roberts, Amy. “Halloween by the Numbers.” CNN. Cable News Network. Turner Broadcasting System, Inc., 31 Oct. 2015. Web. 19 Oct. 2015.
Overall, thought that your post was very well done and interesting. I had no idea that Halloween is so beloved in the United States. For the most part, your use of economic terminology is accurate. There are some more statistical data about Halloween that you could have included to add depth to your writing. According to Forbes, 2.08 billion dollars is expected to be spent on Halloween candy, candy that is given out for free to Trick-or-Treaters. Also, 1.96 billion dollars are expected to be spent on Halloween decorations alone. These are very interesting facts relating to Halloween that you could have included to add depth to your article. Overall, however, I thought that your article was well written and interesting.
ReplyDeleteIt's interesting to learn how profitable Halloween is. I never realized that so much money was spent for Halloween. It would be intriguing to know if most of the money comes from young adults, middle age adults, or older adults. Anyway, I was at a costume store this past weekend and noticed almost all the costumes were over $30 which seemed like a lot for something you might only where once, but since the demand is so high, I guess the price can increase. I wonder if demand increases from year to year or if stays about the same every Halloween.
ReplyDeleteI knew that Halloween generated a lot of money but didn't know it was that high. Based of the graph in the article it seems about the same amount of people celebrate Halloween however the amount spent seems to increase. This could be inflation with the price of costumes and candy. It almost seems unfair for the price of items for the little use that the costumes will get. However, there will never be a price ceiling. Overall I thought that this was very interesting how more and more money is being spent which leads to a higher profit for Halloween.
ReplyDeleteIn any specialty market, weighing the opportunity cost of production is essential. The ever-changing holiday decorations and goods market is one in which trends dominate the behavior of the demand curve. This year in particular, you mentioned that pet costumes are all the rage. Producers have anticipated this and, in response, increased the quantity supplied. It is funny to see how economic principles apply to even the littlest and most obscure markets.
ReplyDeleteIt seems like when the demand for candy is high, the candy companies raise their prices because they know people are still going to buy the candy they are selling. If candies price was this high any other time of year, everyone would find substitutes to candy that are less expensive because candy is an elastic good so no one really needs it. It is crazy how much people will spend one things just based on the time of year it is.
ReplyDeleteI enjoy your topic and point but why is Halloween such a big holiday? And do people spend more money on Halloween than they do Christmas? How has Halloween risen in making a profit and how does it make money for certain businesses. Also what about the stores dedicated to Halloween exclusively? How is not getting candy a relative trade-off?
ReplyDeleteHalloween has always been one of my favorite holidays, I love dressing up and of course free candy. I have never thought about what this holiday does for businesses, but after reading this post, it is very clear that many businesses love Halloween as much as I do. This post also helps explain that due to the high demand costumes are expensive! A lot more goes into preparing for Halloween than I realized... candy, decorations, pumpkins, costumes, ect. the cost really adds up.
ReplyDeleteIn Halloween stores I always notice how there's either no supply of popular costumes left, and a number of unpopular costumes left over, which is a loss for the company. Would it be better if Halloween stores just sold popular costumes to benefit their company, or should they still keep the nice selection and variety? Halloween would be hard to predict how much of something to supply because there are many factors like weather that could be pushing people away, especially kids for trick or treating, so how do producers know what to expect with each year?
ReplyDeleteAdditionally, the opportunity cost of not buying pumpkins or candy or costumes would have been missing out on this popular holiday. Also, I would definitely agree that the demand for costumes increases during October and how they created a whole new market entirely with pet costumes to boost sales as well.
ReplyDelete"in order to meet the demand and not cause a shortage, the producers have to increase their supply of the Halloween products" I found this statement super interesting, and I'd like to add that if a shortage occurs, producers can only resupply until November 1, otherwise they have to wait until the next year for consumers to be interested again. I wonder how profitable a Halloween company in a few months would be compared to a company that sells its products year round?
ReplyDeleteYour post was very appealing to me because I love Halloween; what's better than dressing up in anything you want to be and getting large amounts of candy for free?! Because Americans are so in to Halloween, I wonder which age group is most involved and which group spends the most money on Halloween related products. Bags of candy and Halloween costumes are overly priced which is no surprise since the demand for these things are so high. Everyone needs a Halloween costume and some individuals just don't want to go out and make their own, so they choose to buy one. Stores can price their costumes high because the demand is high, allowing them to make a greater income. Your post was well written and interesting; it is crazy how much Americans spend on the simplest products for one holiday.
ReplyDeleteI think that people are moving the selling of Halloween products earlier than normal. The costume shops open just as soon as Summer is done. I think that they are doing this so that people have more time to find the perfect costume and the shop can order more for other people and make more of a profit. Halloween candy is also put out earlier so that when people go to the stores that is one of the first things that they see so they are hit by an impulse buy and will buy more because they have the option at an earlier time.
ReplyDeleteI think that people are moving the selling of Halloween products earlier than normal. The costume shops open just as soon as Summer is done. I think that they are doing this so that people have more time to find the perfect costume and the shop can order more for other people and make more of a profit. Halloween candy is also put out earlier so that when people go to the stores that is one of the first things that they see so they are hit by an impulse buy and will buy more because they have the option at an earlier time.
ReplyDeleteSince it is that time of year, the demand for candy is so high that the price would get higher, and companies know people will pay for it because it is a "need" just for the holiday. Plus all the costume prices can be higher than usual which I never really thought about before. Before reading this I didn't realize that Halloween was such huge profit for businesses. One thing that I do notice in stores though is that they seem to run out of candy, you would think the supply would be higher but its hard to predict the amount that will be sold.
ReplyDeleteIt's amazing to see how much people spend on Halloween, I always thought the big profitable holidays were Christmas and Thanksgiving. However when thinking about all the candy and costumes and decorations people really do spend a lot of money on Halloween. It's also crazy that stores put their Halloween stuff out so early....sometimes in early September.
ReplyDeleteHi Michelle! I really love your topic! Totally perfect for this time of year! Before I never realized how beneficial Halloween is to the economy and how many of Americans participate in this national holiday. You appropriately and successfully related your topic to economics without distracting from the topic. Seeing the graph, made me wonder if Halloween has the potential to generate more revenue than Christmas? Overall very nicely done! Fun read!
ReplyDeleteI was surprised to see how much money is spent on Halloween. I feel like this holiday is not the most celebrated when compared to Christmas and Easter. However, this time of year is great for the candy stores because demand increases and they can increase the price because during Halloween, candy becomes somewhat inelastic. I'd be interesting in seeing how much the profits of the candy industry increase, when compared to other holidays like Christmas and Easter.
ReplyDeleteThis post really stress the economic importance of Halloween. I never thought about just how much money people spend on all of the decorations, candy and costumes for this holiday, but, now that it is brought to my attention, these are three crucial parts of the holiday. These three things are relatively inelastic this time of year because they need to be bought for Halloween. I find it interesting to see the increase in prices for these three things and how that does not have much to any effect on the demand for them at all. In fact, the demand is actually at an increase, again, because of the holiday and the time of year. Overall I thought you did a really good job relating something relevant in the year and our lives right now to something relevant in what we're studying in econ!
ReplyDeleteI thought this post was very interesting and well written. I wish you would've looked at different brands of candy and see how their sales difer during this part of the year. I would have thought that costumes would have contributed to the majority of the sales, but it is interesting to see how much of an impact that candy has on the economy during this time of year. It is interesting that these items are inelastic during this time of the year, and elastic during other times of the year. Overall, great post!
ReplyDeleteI had no idea that Halloween cost that much money! I knew that the candy prices went up during the time of Halloween because more people buy candy for the holiday. This makes sense because the candy is in higher demand, so it only makes sense to raise the price if consumers are willing to buy it anyways. My sister and I always buy candy right after Halloween because the candy is on discount, since the demand is lower and less people are scampering for their favorite candy bar. All in all, you had a really interesting blog post that gave me some new insight about the market during Halloween.
ReplyDeleteI knew especially within the last decade Halloween has become an increasingly popular holiday, but I didn't know that Halloween was the second largest holiday in the United States and that annually people spend 6.9 billion on the holiday. I had known that the prices of candy increases during the Halloween holiday period because people buy more candy then. It would have been nice to see you compare different brands of candy and how their sales differ from different points of the year. I would have thought that decorations and costumes would contribute a majority of the sales for Halloween, but it makes sense that candy is the highest contributor to Halloween sales because more people tend to buy more candy and goodies than decorations and costumes. I thought it was very interesting on how candy becomes inelastic during the Halloween period, but then goes to elastic after the period. Overall, I thought it was a very good post on the changes that occur in the economy during Halloween. Great post!
ReplyDeleteHey Michelle, I think you picked a great topic that is especially relevant to this time of year. I can't believe that each individual spends an average of 75$ on Halloween! I thought it would be closer to $30 dollars because in my family we just buy candy and not really costumes. Then again I can see how people would buy more candy because kids are taking more and more candy out of your basket every year. Also nobody likes to be the house with the gross candy, so I could see how candy during this time becomes an inelastic good. I am interested to hear what candy is most popular and has the highest demand during this season. Overall, this was a great post that really grabbed my attention.
ReplyDeleteWhen I think about how many people I see in costumes, all the scary decorations I see, and all the candy I have collected throughout my childhood, it makes sense that Halloween is the second most celebrated holiday in the US. What is the most celebrated holiday in the US? I thought this was a very interesting and current topic to write about. Do to the inelastic characteristic of costumes I wonder if there is a price ceiling in place on costumes.
ReplyDeleteWith all the examples you gave, I can see how Halloween is very expensive! There is a lot that goes into the holiday to make it fun for everyone. I wonder what the benefits of shopping early are for the holiday? Maybe a greater selection? But closer to the end and even right after Halloween all costumes go on sale because the demand decreases and they want to get rid of them. I would predict that most of the advertising and focus goes toward children for the holiday because almost every kids dresses up.
ReplyDeleteSince Halloween is coming up I think that this is a great topic to talk about. It is crazy how much money people spend on Halloween costumes, candy etc. Looking back to when I was younger I remember always being very excited to collect candy and dress up. I can't imagine not celebrating Halloween, but now i wonder how much money I have spent over the past years on this one holiday... probably a ton.It will be cool to see what happens in the future with all the candy sales and costume sales and how they will keep increasing. Overall this was a really good post and it was interesting to read.
ReplyDeleteI didn't realize how celebrated Halloween is as a holiday and how much people actually spend on it. I thought the total spending on Halloween would be much lower because I don't see a lot of people with Halloween decorations in their front yard and when I do it's just a ghost or scarecrow and usually the one's who wear costumes are children whose costumes are a lot cheaper than adults. This was an overall interesting post
ReplyDeleteI found it interesting to see how much people spend on Halloween. Maybe you could have compared certain businesses and companies to see which supplier profits the most out of Halloween, and which product brings in the most revenue? Otherwise, great topic!
ReplyDeleteI always knew that Halloween was a very celebrated holiday, but never expected it to be the second most celebrated holiday besides Christmas. Many kids, teens, and adults must think of all the money they spend every year on these holidays and believe that it is a wise opportunity cost. It seems that every year these seasonal products like costumes begin to become more expensive and bigger portions of our income, which leads to an increase in costume and decoration purchases at second hand stores like Goodwill. To me, the expensive costumes and decorations are very elastic, however the candy is the most demanded on this holiday so that can't be over looked or substituted. Candy is one aspect of Halloween that can never be replaced, because to the younger consumers, or Trick or Treaters, it just wouldn't be Halloween without bags and bags of candy.
ReplyDeleteThis topic caught my attention because I remember being so exited to go trick-or-treating with my friends when i was little. I'm a little surprised to learn that the average is only about $74 because while looking around my neighborhood i can easily guess that my neighbors have spent more than that, with yard blow-ups, signs, tombstones along with other things that must take forever to put up. I wasn't all too surprised to learn that it's the 2 most celebrated holiday because anyone who has kids in my neighborhood will be seen out and all dressed up.
ReplyDeleteThis topic is extremely relevant to this time of year and I found it interesting on how much people actually spend just to wear or use for a days or two a year. I find it amazing how some people spend much more than that on decorations and candy to hand out to all of the open hands of our youth. Also I find it interesting how Halloween was the second most celebrated holiday in the United States. I wouldn't have thought it would be second, I thought it would have been lower ranked.
ReplyDeleteWow I can't believe that Americans spend that much money on candy and costumes per year. It's also crazy to think that millions of dollars are spent on people's dogs costumes. You see dogs dressed up, but I never knew people spent that much on their pets for Halloween. Everyone knows that people buy way too much candy on Halloween, so it makes sense that if you added up all the money people spent on candy, as a whole in America, that it would add up to a number like that. I never really thought about how much Americans are willing to spend on Halloween, but I know for most people, especially families, celebrate Halloween which can add up depending on how large your family is.
ReplyDeleteThis topic was interesting to read, especially since Halloween is coming up pretty soon. But I was surprised on how much people spent on decorations and candy. I figured around this time a year more people would be spending their money on fright fest or even haunted houses. Since these events are very popular for high students and young adults and it's always so packed all night long. On the other hand, I'm not surprised that so many people celebrate Halloween, since kids love to dress up in costumes and getting free candy from door to door.
ReplyDeleteI've always loved Halloween, all the decorations, costumes, candy, monsters and all that but I had never seen Halloween from an economy perspective, and know that I think about it's crazy how most of us are willing to pay $60 for a costume but what else can we expect at this time of the year our demand for Halloween supplies increases significantly allowing suppliers to raise prices in order to avoid shortage.
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