Unwrapping the Supply Chain of Halloween 2022

Where are consumers spending the most this spooky season and will the Halloween supply chain be able to keep up this year?

What’s in the article:

• What consumers spending the most on this Halloween

• How the 2022 Halloween supply chain compares to previous years

• What can retailers and manufacturers do to keep up with high demand

From costumes to candy, the Halloween supply chain has had a haunting past the last few years. But with the pandemic ending and the worst of supply chain disruptions seemingly behind us, will consumers finally be in for a treat when ghost and goblins come to play on All Hallows’ Eve?

Can the Supply Chain Keep Up with Dressing Up for Halloween?

Consumers are predicted to spend up to $3.6 billion (about $11 per person in the US) on costumes in 2022 and with supply chain disruptions such as port congestion beginning to ease, the challenge this year will not be having enough inventory, but keeping inventory in stock at the right place and at the right time.

Having visibility into data that can help accurately predict trends during holidays, such as Halloween, will be key for retailers to solve the consumer demand mystery and ensuring maximized profits this year.

The Sweet Supply Chain of Halloween Candy

Americans purchase 600 lbs. of candy each year, but for Halloween they are expected to reach an all-time high of $3.1 billion (about $10 per person in the US) spent this year. Over 10% of annual candy sales happen the days leading up to Halloween. This has already led to companies like Hershey’s predicting it would be tough to fully meet consumer demand this year and may run out of candy. Hershey’s Milk Chocolate is among the top 10 Halloween candies sold in the US (United States).

Due to the already stressed supply chain of raw ingredients to produce the candy, keeping the chocolate that has been made intact during the shipping process is crucial. Chocolate should be transported with temperature-controlled equipment between 55F and 65F. Any kind of temperature fluctuations in shipping can cause damaged product, and result in even less product in the bags of trick or treaters this spooky season.  

A Larger-Than-Life Halloween Display

Halloween participation is expected to return to pre-pandemic levels in 2022 and Americans are expected to spend a whopping $3.4 Billion on decorations. Although consumers are in for less trick and more treat as store shelves become less empty, the growing demand for a bigger and better display of decorations each year still has some stores struggling to keep up.

The growing popularity of larger-than-life yard décor, such as Home Depot’s 12′ skeleton is just one of those items. The skeleton, known as “Skelly”, has fans snatching them from shelves and online just as fast as they are stocked.  

146 million Americans (44% of the population) will contribute to the $800 million in sales of pumpkins to carve jack-o-lanterns, despite the 12% increase in cost this year. Skeletons and pumpkins top the list of the most popular Halloween décor, along with witches, and spiders.

More Tricks than Treats for the 2022 Halloween Supply Chain

Compared to previous years, the Halloween supply chain is set to provide more treats than tricks in 2022. Consumer spending and demand is rising, and most retailers and suppliers will need to learn from the ghosts of the past to keep up.