Report: Halloween sales to grow a slow 3%

Los Angeles -- Faced with an uncertain economic and political environment and the first government shutdown in nearly two decades, Americans are expected to tighten their holiday budgets this year, beginning with Halloween, according to market research firm IBISWorld. Total spending on the holiday is anticipated to grow only 3% to $7.63 billion in 2013, compared to a strong 17.8% increase in 2012.



In 2013, IBISWorld expects consumers to spend $2.76 billion on costumes, up 1.5% from 2012. By contrast, spending on costumes skyrocketed 29.5% in 2012, on the back of strong consumer sentiment. A little more than half (50.4%) of this category’s revenue will come from adult costumes, while 47.7% will be generated through the sale of children’s costumes and another 1.9% will come from pet costumes.



Candy, the second-largest expenditure category on Halloween; this year, is expected to total $2.25 billion, up 2.7% from 2012. The meager increase is a stark contrast from last year’s 12.3% jump in candy sales.



Although spending on decorations is also slowing, IBISWorld anticipates decorations to experience the strongest revenue growth this year, jumping 6.7% to $2.23 billion. Demand for the category remains strong.