Consumers are indulging in Halloween fun this season but with an eye on affordability, according to data analytics firm Euromonitor International. This year, shoppers have seen Halloween products showing up on their shelves earlier than expected. Part of this is in response to the ongoing cost challenges, with snack manufacturers promoting their Halloween lines earlier to give consumers more time to budget and shop.
Carl Quash III, Head of Packaged Foods, Snacks and Nutrition at Euromonitor International, said: “The National Retail Federation (NRF – US) estimates that overall spending on Halloween will decline this year versus last year. However, the confectionery category is expected to remain steady, as it is an essential part of the core season’s celebrations of trick-or-treating.”
With global cocoa and sugar prices skyrocketing and with chocolate prices rising 17% in the US over the past two years, cost-saving strategies are likely to be deployed this year and can possibly result in a step up in non-chocolate confectionery sales during the Halloween season, Euromonitor estimates.
Quash said: “Globally, seasonal chocolates hold the highest average unit prices and are expected to see the steepest price hikes among all confections. With that in mind, chocolate products from private labels and non-seasonal chocolate pouches and bags may be welcomed replacements for Halloween-themed chocolates this year. This is a prime opportunity for brands to innovate and deliver delightful, affordable indulgences to bring growth to that sector.
“We are also witnessing a shift towards non-chocolate alternatives that cater to evolving consumer preferences. Pastilles, gummies, jellies and chews category is outpacing growth of seasonal chocolates across several key markets such as Canada, Mexico and the UK, given their lower price points and ability to deliver on indulgent sensory demands,” said Quash.
Food and beverage manufacturers’ future growth strategy includes targeting new consumer segments and occasions with existing products, according to Euromonitor International’s Voice of the Industry Key Consumer Insights. For Halloween, this translates into manufacturers looking beyond the saturated, core US market and considering the relevant demand for ‘treating’ across new markets. Quash said: “There are other nations around the globe that celebrate Halloween or some other holiday around the end of October/early November, and each country has its own unique traditions that often favor traditional foods over chocolate and sugar confectionery snack consumption.”
In markets like India, Brazil, Poland and the Philippines, Halloween celebrations are budding, particularly among younger consumers. Understanding the importance of local traditions first and foremost will help manufacturers begin to adapt treating opportunities to meet the nuanced demand each market expects, Euromonitor highlights.
Opportunity for foodservice beyond Halloween
The fall season is the time for restaurants to embrace seasonal ingredients such as pumpkin, squash and mushrooms, with limited-time offers historically highly sought after by consumers. Stephen Dutton, Client Insight Research Manager at Euromonitor International, said: “Fast food chains are tapping into this by launching products that excite consumers and leveraging loyalty programs to deliver exclusive promotions.
As consumers increasingly turn to technology for convenience, there’s an expectation that restaurants will integrate these tools into their marketing strategies to build lasting brand loyalty and drive traffic beyond peak seasons like Halloween, which is important given how highly competitive fast-food brands are on price.”
Dutton said this is an excellent time for restaurants to innovate, offering products that not only draw customers in but also encourage them to explore new flavors and experiences.
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