The business of Halloween is big. Would you believe $5 billion big?

Halloween’s popularity as a holiday just keeps increasing and consumer’s willingness to part with cash does as well. According to the National Retail Federation's Halloween Consumer Intentions and Actions survey for 2007, conducted by BIGresearch, 

“consumers are expected to spend $5.07 billion this Halloween, up from $4.96 billion last year and only $3.29 billion two years ago. Spending is expected to rise slightly in all categories this year.”

“Consumers see Halloween as a seasonal celebration to bridge the gap between the end of summer and the winter holidays,” said Tracy Mullin, President and CEO of NRF.  “Halloween offers a little something for everyone and, this year, people of all ages will be joining in the fun.”

Apparently not just “people” of all ages will be out in costume this year. The study suggested that an estimated one in ten Halloween celebrants (actually 11.0%), or 7.4 million households, plan on donning their beloved pet in some sort of costume this year.  Did you catch that? One in ten costumed trick-or-treaters will be pets? For those keeping score at home or those that are stuck worrying about assuring that their pet is part of the fun, let me share more data from the 2007 NRF Halloween study. Apparently, the top five costumes planned for the four-legged set in as follows:

• Devils (12.0%)
• Pumpkins (9.2%)
• Witches (4.5%)
• Princesses (3.8%)
• Angels (3.3%)  

Don’t forget safety tips for dogs in costume as provided by About.com.

Halloween is second-biggest decorating holiday of the year after Christmas and decorations are the top retail category as 67.0 percent of consumers plan to purchase Halloween decor and almost half (48.6%) plan to decorate their home or yard.  Additionally, almost everybody (95.7%) will buy candy.  

The study expects the average consumer will spend the following for Halloween:

• Candy - $20.94
• Costumes - $38.50
• Decorations - $26.59
• Greeting cards - $11.89

While spending for Halloween continues to grow, Halloween has not climbed into the top five for holiday spending and is dwarfed by the Christmas season (nearly $500 billion). It seems that until gifts become a Halloween tradition (more than candy), Halloween is relegated to decorations, costumes, greeting cards and candy spending – and dressing up the pet. While it is a big spending holiday, it will need to double to break into the top five as illustrated below:

1. Winter Holidays ($457.4 billion estimated)
2. Valentine's Day ($13.70 billion)
3. Easter ($12.63 billion)
4. Mother's Day ($13.80 billion)
5. Father's Day ($9.01 billion)