Daily Briefing (Insiders Only): How Much Will Consumers Shell Out On Easter?
With Easter just a few days away, shoppers will be shelling out more for sweets than they have in years’ past. This year’s holiday has become one of the most egg-spensive yet (sorry, we had to).
Soaring egg prices have been weighing heavily on consumers for months, and cocoa prices have curbed innovation in the CPG category more than a year now. Although a brief respite in egg prices last month allowed producers to reduce some shortages, newly released data from the Consumer Price Index suggests a return to “normal” is still a ways away.
- U.S. egg prices climbed to a new record-high of $6.23 per dozen in March despite a drop in wholesale prices and no new significant avian flu outbreaks, per CPI.
- As demand for eggs is typically elevated until after Easter, it’s possible that prices will rise again as producers feel the squeeze. If that’s the case, the industry may risk dampening demand altogether.
“There are lots of people who are looking to see egg prices coming down because they wanted to call it a win. It’s a loss for everybody,” Jana Thompson, agricultural economist at the University of Arkansas, told PBS news.
Commodity chocolate prices aren’t faring much better, though they have lessened from the record high of $10.75 per kilogram in December. As we’ve previously reported, ongoing supply chain issues in West Africa – the world’s largest cocoa producer – are the main culprit. Factor in the slate of looming tariffs, and it’s likely the situation will only worsen.
Both chicken eggs and chocolate eggs may be costly, but Americans still plan to spend a total of $23.6 billion on Easter this year, according to an annual survey from the National Retail Federation (NRF). That’s up from last year’s $22.4 billion, and is approaching the record $24 billion shelled out in 2023.
- The most popular holiday purchasing categories include candy (92%), food (89%), gifts (65%) and decorations (51%).
- More than half (58%) of consumers plan to cook a holiday meal at home.
What’s behind the consumer confidence in Easter spending? As evidenced by shopping behaviors during the pandemic, holidays are “especially meaningful” in times of uncertainty. Additionally, limited-time promotions appeal to value-seeking consumers regardless of whether they celebrate the holiday.
- Among those who don’t celebrate, 54% plan to spend an average of $25.43 per person on holiday-related items this year, up $5 from 2024.
“Even though a majority of consumers plan to spend the religious holiday with friends and family, others will still take advantage of holiday-related sales. Retailer deals and promotions offer those who don’t celebrate Easter an opportunity to buy candy, food and other items,” said Phil Rist, VP of strategy at NRF, in the report.
