If the end of October seems stranger and spookier than ever, there's a reason for it - Halloween is growing. The Great Pumpkin is not just looming over a few solitary pumpkin patches any more. If you're interested in starting a business or investing in one, you should look past the treat-or-treaters for the sweet business opportunities Halloween provides.
Halloween is a Large Market
The size of the market is one reason that Halloween is a solid business opportunity. Halloween has become a true retail bonanza. In the U.S. in 2006, consumers spent approximately $4.96 billion on Halloween, a significant increase compared to the $3.29 billion spent on Halloween in 2005. In Canada, Halloween spending accounted for approximately $1.15 billion in sales in 2006.
The Halloween Market is Growing
The Halloween market is growing in two ways that make it very attractive for business opportunities. First, Halloween is becoming an increasingly universal celebration. According to a survey by the National Retail Federation, nearly two-thirds (63.8%) of American consumers were planning to celebrate Halloween in 2006, up from 52.5 percent in 2005. Canadians are even keener Halloween celebrants; 68% of Canadians planned to participate in at least one Halloween-related activity in 2007, according to a survey conducted for the Retail Council of Canada.
Second, individual consumers are spending increasing amounts of money on celebrating Halloween. The average American consumer planned to spend $59.06 on Halloween in 2006, up from $48.48 in 2005 (National Retail Federation). Canadian statistics show a smaller but still significant increase with Canadians planning to spend $60 on Halloween in 2006 compared to $57 in 2005 (Retail Council of Canada).
So statistically, business opportunities related to Halloween should have "legs", with a market that continues to grow over time. Growing segments within the Halloween market make for even sweeter business opportunities.
Halloween Isn't Just for Kids Anymore
Children's trick-or-treating is still a Halloween mainstay, but it's adults who are spending the money on celebrating, embracing Halloween as a chance to let their inner child get out and party. Large parties with participants wearing elaborate costumes are becoming increasingly popular - excellent news for people looking for niche business opportunities.
Interestingly, it's not just young adults who are getting in on the spooky fun. The National Retail Federation found that in 2006, 85.3 percent of 18-24 year olds planned to celebrate Halloween (up from 66.8 percent in 2005), but 76.5 percent of consumers aged 25-34 and 71.3 percent of 35-44 year-olds were also planning to celebrate. In a 2007 Halloween survey, men between the ages of 18-34 were planning to spend the most on Halloween items at $72 a person.
Possible Halloween Business Opportunities
The statistics above make Halloween an excellent proposition for investing in or starting a new business. But what kinds of businesses would be the best business opportunities?
One way to answer this question is to examine the most popular Halloween products. I bet you've already guessed the two things that most people buy - candy and pumpkins. The other most purchased items are Halloween decorations and costumes. (Halloween is the second biggest decorating holiday of the year, surpassed only by Christmas.)
As business opportunities, you should cross the first two items off your list. There are already many (large-scale) businesses producing Halloween candy and pumpkins and your chances of competing successfully would be practically nil.
However, the other two on the list, Halloween costumes and decorations, provide scope to develop business opportunities, particularly opportunities that cater to a niche market.
You might, for instance, start a business:
- providing Halloween music for parties
- creating “authentic” period costumes for adults,
- providing Halloween decorating services for residential or business premises
- presenting in-house parties for children (as a substitute for trick-or-treating).
Besides Halloween parties, visiting haunted houses is another Halloween event growing in popularity. Setting up a haunted house of your own could be an expensive proposition (and a poor idea anyhow if there is another nearby), but providing tours of "haunted houses" and other spooky sites in your area could be a profitable business opportunity. Check with your local historical society or old-timers to research your area's paranormal history; the ghost stories you discover may surprise you - and be quite profitable if you can present them in an alluring, entertaining way.
Bag Profits with a Halloween Business
The purpose of this article is not to present every possible Halloween business opportunity there is but to make you aware of the potential of the Halloween market and get you thinking about possible ideas that you could turn into a profitable small business.
So don't just look at Halloween as a trick-or-treating obligation or a chance to party. Halloween presents many business opportunities that a savvy entrepreneur won’t want to overlook.
