The economics of Valentine’s Day - Students For Liberty (2024)

FAQs

The economics of Valentine’s Day - Students For Liberty? ›

The projected total in general for spending on significant others is $14.2 billion, while the overall economic impact is an estimated $25.8 billion.

The projected total in general for spending on significant others is $14.2 billion, while the overall economic impact is an estimated $25.8 billion.

There are three economic principles that are illustrated by Valentine's Day: the importance of free markets and wealth creation, the logic of gift giving and signaling, and the seen and the unseen.

Valentine's Day Is an Economic Engine

The National Retail Federation (NRF) estimates that 53% of consumers plan to celebrate Valentine's Day, and $25.8 billion will be spent on the holiday this year, or about $185.81 per household.

Spending differs by gender and age. Men spend more on Valentine's Day ($200+), while women usually spend less. Millennials are the biggest spenders, with those in that age group planning to spend around $300 on the holiday.

Flower companies profit enormously. Throughout the year, Americans purchase flowers for occasions including Mother's Day, Easter and New Year's Day. For Valentine's Day, Americans go big — and in 2024, they're expected to spend $2.6 billion on flowers and floral arrangements.

Valentine's Day spending surges

The Valentine's Day spending trend shows consistent growth, making it an attractive opportunity for small businesses to capitalize on. Whether it's gifts, dining, or experiences, people are willing to spend more to make their loved ones feel special during Valentine's Day.

The holiday is celebrated more as a social event through festivals, carnivals, or dancing rather than commercialized spending on gifts. On the contrary, in America on Valentine's Day, consumers spent $27 billion. Why? The answer is capitalism.

When purchasing flowers, jewelry, or wine, they faced an uptick of 3%, 0.6%, and 4.7%, respectively. Sadly, according to a WalletHub Survey, 46% of Americans say that inflation is negatively impacting their Valentine's Day plans.

Which president lost his wife on Valentine's Day? ›

Death. Roosevelt languished for several hours while her husband held her; dying the afternoon of February 14, 1884, from undiagnosed kidney failure. It was determined that her pregnancy had masked the illness.

Overall Spending

Spending has continually increased for Valentine's Day, except for the drop in 2021, influenced by Covid-19. In 2022, consumers spent close to $24 billion on Valentine's Day gifts, the second-highest amount since 2007. The most popular gifts were candy (56%), greeting cards (40%), and flowers (37%).

Overall, consumers plan to spend a total of $25.8 billion to celebrate Valentine's Day, on par with last year's spending and the third highest in the survey's history. Sixty-two percent of consumers ages 25-34 plan to celebrate this year, more than any other age group.

As businesses worldwide leverage this celebration to boost their revenue streams and consumers express their affection through various customs and traditions, this holiday's economic impact continues to resonate globally.

In This Together. Touching and hugs can remind the brain of familiar feelings of comfort and affection, for both the giver and the receiver. Among couples, this can lead to stronger bonds and more positive emotions.

Valentine's Day Spending To Hit $26 Billion, As 'Experience Gifts' Grow In Popularity. Contributor. I write about evolving consumer behavior and its impact on retail. As consumer preferences and behaviors evolve, so do centuries-old traditions.

On Valentine's Day in the United States alone, 36 million heart-shaped boxes, 180 million cards, 198 million roses, 881 thousand bottles of sparkling wine, and 58 million pounds of chocolate are purchased, resulting in carbon emissions equivalent to driving around the world 3,993 times— according to Waste 360.