The company estimates holiday spending to grow 1.7% to $20.1 billion in 2018, topping its historical record.
IBISWorld said it is driven by high levels of per capita disposable income, consumers are more likely to splurge a little more on gifts for their special someone. The average shopper is expected to spend $151.98 on holiday indulgences.
According to the National Retail Federation (NRF), a larger share of the US adult population will celebrate Valentine’s Day this year, with an expected 54.7% participation rate, up from 53.9% in 2017. Sales of candy is anticipated to experience the largest holiday boons in 2018, with spending on these traditional Valentine’s Day gifts expected to grow 5.4% and 3.1%, respectively.
According to the NRF, more consumers will buy candy this year than any other gift, with 55.0% of total holiday participants planning to spoil the people they love with something sweet. High demand for holiday treats is set to benefit operators in the Candy Production industry and the Chocolate Stores industry, with IBISWorld expecting these industries to achieve 0.9% and 1.0% respective revenue gains in 2018.
IBISWorld said with the holiday falling in the middle of the week, fewer Aussies will celebrate with a date night, contributing to a 0.3% contraction in spending on a celebratory night out. Fewer big dates this Valentine’s Day will contribute to an expected 0.8% decline in revenue for buffet restaurants in 2018, as well as slow 1.1% growth in demand for premium steak restaurants for the year.