People in Britain are forecast to spend £310 million on Hallowe’en in 2016 - up five per cent from £295m in 2015.
And those aged 16 to 35 are expected to spend the most - with as many as half spending money on Hallowe’en, according to research by consumer analysts Mintel.
Last year, 40 per cent of all Brits spent money on Hallowe’en, with six per cent spending £85 or more.
Alice Goody, retail analyst at Mintel, said: “The value of the Hallowe’en market is set to rise in 2016, as retailers continue to dedicate more space in store to their seasonal ranges.
“For Millennials who grew up celebrating Hallowe’en, this nostalgic event provides a good excuse for a party, driving retail spend on food and drink, as well as money on going out.
“Capturing the imagination of these young consumers will be key to driving the growth of Hallowe’en, as not only are they buying more items and spending more on average than other generations, but the vast majority agree that they enjoy taking part in the event.”
Last year the nation’s top five Hallowe’en activities were carving a pumpkin (13 per cent), watching a scary film (12 per cent), dressing up in fancy dress or facepaint (10 per cent), decorating the home or garden (nine per cent) and hosting or attending a party or dinner party (eight per cent).
Women aged 16 to 24 and parents of children under five years of age proved that dressing up isn’t just for children, with 27 per cent of these consumers wore fancy dress or face paint for the occasion, compared to 10 per cent on average.
Ms Goody added: “The popularity of pumpkin carving, dressing up and face paint creates an opportunity for retailers to tap into the desire for experiences by offering in-store Hallowe’en workshops, such as pumpkin-carving ideas or face painting tutorials.”
Hot on the heels of Hallowe’en, Bonfire Night is the smallest autumn/winter event in the calendar, worth an estimated £52m in 2016.
Just 23 per cent of consumers spent money on Bonfire Night in 2015, compared with four in ten for Hallowe’en.
Ms Goody said: “Bonfire Night is a fairly insignificant event in terms of consumer spending as it falls just after Hallowe’en and as the pre-Christmas build-up starts.
“There are greater opportunities for retailers in more rural areas, as our research finds that consumers in urban areas are much more inclined to attend an organised display.”