Years ago, Halloween was a modest celebration with homemade costumes and simple offerings on doorsteps and houses. Today, it commands a sprawling commercial empire. How this change occurred between colonial America and the United States today, not many think about.
When people moved from all over the world to the Americas during the colonial period, they brought with them their beliefs and traditions regarding the holiday, mostly known as All Hallows’ Eve at the time. During the holiday’s origins and its debut in the United States., people dressed up as a way to disguise themselves rather than for fun like it is today. During the early phases of costuming, people dressed to ward off wandering spirits. Eventually, the tradition involved town parades and dressing as spooky motifs. For years, these Halloween costumes were homemade of readily available materials, such as sheets and handmade masks.
Later, the 1950s marked the beginning of mass-production in costumes, with people dressing as popular cultural staples. These costumes were affordable for families, typically costing less than five dollars. In the 1980s, the United States started to experience an increase in costume costs, with individuals purchasing costumes between five and $15. By the 2010s, costumes cost around $23. In 2025, Halloween costumes are projected to cost an average of $37.62. Mass-production companies make billions of dollars each year from costumes, which used to be homemade and affordable, though many still choose to create their own costumes today.
As Halloween costumes evolved, so did other traditions revolving around the holiday. Trick-or-treating, for example, was also once an inexpensive custom that grew into modern consumerism. When the tradition began in the United States in the 1930s and early ‘40s, children were given offerings of cookies, fruit, nuts, coins and even small toys. In the ‘50s, around the time when purchasable costumes became more mainstream, candy became a popular treat as it was most affordable. In the 1970s, factory-wrapped candy became the most popular and acceptable offering due to safety concerns from parents. By the 1980s, candy companies made around $6.4 billion from Halloween candy and in 2024, candy companies made $7.4 billion during the Halloween season.
During spooky season, homes and businesses around the country celebrate by decorating. Americans began decorating around the early 1900s with cheap mass-produced paper decor. This year, companies are projected to make $3.4 billion on selling Halloween decorations, according to a National Retail Federation survey. Whether it is for one’s home or as part of a haunted house attraction, individuals spend money every year to purchase new decor.
Overall, the Halloween industry is predicted to make $13.1 billion in holiday sales. Compared to what Halloween prices used to be, the United States has faced an over 250% increase in the past two decades alone.
Despite the rising prices and economic decline in families, people still spend the same amount of money each year on Halloween. Citizens report experiencing economic hardships, yet they still spend millions of dollars on Halloween costumes, decorations, treats and more. While the holiday can be fun and joyous for millions of people, buying into tempting goods may be damaging to family consumers who face financial instability, especially since Halloween has become a highly commercialized time of year.