Can Halloween-Branded Packaging Drive Growth?

What you will learn from this article:

• Impact of seasonal packaging on driving sales: Is all that complexity in supply chain worth the effort?
• Opportunity to include price inflation with limited edition branding: Does reducing the size while adding festive packaging still entice shoppers?
• New customer attraction: Can Halloween branding help you reach beyond your existing customer base and bring in new buyers?

Introduction: The Strategic Impact of Seasonal Packaging

In the crowded FMCG market where competition for consumer attention is fierce, seasonal packaging often plays a crucial role. Events like Halloween give brands the chance to stand out and create fresh appeal through themed designs. But does festive packaging do more than just look good on the shelf and tick a box on an annual plan that is bereft of real innovation? How deeply does it influence consumer choices and sales?

This article delves into the results of a conjoint study focussed on Halloween-themed chocolate packaging in the US market, exploring how consumers react to seasonal designs and price variations. By examining this intersection of packaging and consumer behaviour, we uncover how brands can harness Halloween’s potential to drive incremental sales.

The findings, offer insights into the true power of seasonal packaging and its broader strategic value for manufacturers looking to make a lasting impact.

What is Conjoint Analysis and How Did We Use It?

Conjoint analysis is a research technique designed to understand how consumers make decisions when faced with different product options. It is commonly used to help brands identify which product attributes—such as packaging, price, or size—are most influential in driving purchases.

A shelf conjoint specifically simulates the experience of selecting products in a store, offering insights into how factors like price and brand drive choices. For our study, we applied this approach, securing 4,000 purchase decisions by US shoppers through a virtual shopping environment, testing thousands of pricing scenarios. Through the study, products were shown in total 96,000 times. In each scenario, they were instructed to select one product from a variety of candy packs (some Halloween branded, and some standard), mimicking the process of shopping from a store shelf. Similar to an in store experience, participants could click on each product to get a more detailed look.

Halloween pack mockups were created with custom labels specifying 10% fewer units of chocolate than standard packs, and each product alternated through a series of five prices (base ±10% and 20%) , allowing us to gauge how much more consumers were willing to pay for festive packaging, even at lower volumes. Importantly, consumers were also told to imagine that they were shopping in October, giving a seasonal context to their decision-making.

Halloween Packs Drive Incremental Growth for Candy Brands

One of the key takeaways from this conjoint study is that Halloween-themed packaging doesn't just shift sales from standard products—it drives incremental growth for brands. In fact, introducing even a single Halloween pack alongside standard options increased total preference share (the percentage of consumers who would choose a product over others in the category) for each brand by an average of 189%. This proves that festive packaging not only excites loyal buyers but also attracts new customers, expanding a brand's reach during the Halloween season.

Additionally, the analysis showed that the "none of these" bucket, representing consumers who opted out of purchasing any product, decreased slightly from 9.75% to 9% when all Halloween products were added to the simulator. While the change is small, it indicates that Halloween packaging can stimulate category growth overall by drawing in additional buyers. This is particularly relevant in a market as large as the U.S., where even a small shift can represent a significant increase in total market value.

Rather than cannibalising existing sales, Halloween packaging provides an opportunity for incremental growth in terms of volume and revenue. By introducing seasonal packaging, brands can generate new demand from consumers drawn in by the festive spirit.

Seasonal Packaging can fuel incremental growth during Halloween

Seasonal packaging adds to total brand volume share because, in the weeks leading up to Halloween, consumers overwhelmingly prefer to buy Halloween-themed products. The data shows that, in a one-to-one comparison these festive packs, even with 10% smaller sizes, generated 276% higher preference share compared to standard packs at the same price point. This indicates that well-designed seasonal packaging taps into the excitement and emotional appeal of the holiday, making it a powerful lever for boosting sales.

People Will Pay More for Festive Packaging

Consumers are not just willing to buy more Halloween-themed products—they’re also willing to pay a premium for them. Even though, as previously mentioned, the Halloween packs studied were 10% smaller, customers were willing to pay a 22.63% premium, which translates to a 36.34% higher price per bar.

This opens the door for brands to increase profitability during the Halloween season. By offering limited-edition, themed packaging, manufacturers can boost their margins and enhance the overall appeal of their products.On top of this, it also allows companies to offset the additional costs associated with short production runs and managing new lines in the factory for these limited-edition packs. By offering Halloween-themed products, manufacturers can cover these operational expenses while grabbing market share and enhancing the appeal of their products.

You Don’t Need Kids to Love Halloween

Halloween-themed packaging doesn’t just appeal to families with children. Even consumers who don’t celebrate Halloween or don’t have kids showed a clear preference for Halloween-themed products, assigning a 253% and 277%, respectively, higher volume share to them compared to standard packs. Furthermore, these consumers were willing to pay a premium of between 16% and 20% for Halloween packaging, which amounts to between 30% to 34% more per bar, comparable to the rates found for the general population.

The broader appeal of Halloween packaging suggests that it’s not just about families or traditions—it’s about tapping into the excitement of the season itself. Brands that embrace this festive spirit can attract a wider demographic and increase sales, regardless of the consumer’s background.

Don’t Stay on the Sidelines

One of the clearest risks highlighted by our study is the significant loss of volume share for brands that fail to introduce Halloween-themed products. If your product portfolio consists only of standard bars during the Halloween season, you risk losing out on a considerable portion of your customer base. Brands that ignore the opportunity risk losing 36% to 77% of their volume share to competitors who go all out with Halloween designs as consumers who would typically purchase your standard bar are more likely to switch to the festive, Halloween-themed versions offered by your competitors.

By not introducing a Halloween version, you leave your brand vulnerable to losing market share to competitors who embrace seasonal packaging. Halloween is not just a chance to boost short-term sales; it’s a crucial moment to retain your customer base and prevent them from switching to other brands.

Recommendations for Manufacturers

Given the clear business case for Halloween-themed packaging, here are a few steps candy manufacturers should take:

1. Avoid losing out by sitting on the sidelines, use conjoint to capture growth: Halloween packaging offers more than just seasonal excitement—it drives incremental sales, increasing total sales by an average of 189%. By embracing seasonal packaging, brands can expand their market share and attract new buyers who might not typically purchase their product. Brands who do not take advantage of this opportunity run the risk of losing share to competitors. Conjoint provides brands with the tools to understand exactly how they should optimise their Halloween strategy to get the most out of the season.
2. Optimise pack size and price with conjoint analysis: Every brand has unique product attributes that appeal to its consumers. Conducting a conjoint analysis specific to your product line will help you identify the optimal balance between pack size and price. For example, we now know that consumers are willing to pay a premium for smaller Halloween-themed packs, but how much smaller? Conjoint analysis can reveal how much more consumers are willing to pay for various reductions in pack size, ensuring you don’t miss potential revenue. Additionally, conjoint can help you find the ideal price point that balances consumer willingness to pay with profitability.
3. Invest in creative, high-quality Halloween packaging: The data shows that even smaller Halloween packs can generate significant revenue. By investing in high-quality, creative packaging that captures the festive spirit, manufacturers can unlock additional value from their products. Using conjoint analysis, you can test various design options to determine which will drive most sales from consumers. In our study, for example, two of the three top-performing designs featured pumpkin-themed elements.

Conclusion

Get in touch with us today to explore how conjoint analysis can help you optimise your seasonal strategy—not just for Halloween, but for upcoming opportunities like Christmas and Black Friday. Let us guide you through identifying the most impactful packaging, pricing, and product combinations to maximise profitability and stay ahead of your competitors during these critical retail events.