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Inflation breaks hearts on Valentine's Day with soaring chocolate prices
FOX Business' Lydia Hu speaks to Dessert Ladies CEO Geraldine Keough about the rise in food and cocoa prices on 'The Claman Countdown.'
Millions of Americans will partake in gift giving and exchanging tomorrow on Valentine's Day. Because of this, specific industries and major corporations will profit enormously from the generosity of loved ones around the country.
While some gift givers prefer to hand make items to save financially, others shell out hundreds, and even thousands, for extravagant gifts. Flowers, candies, and jewelry are just a few of the popular gifts significant others will receive this holiday.
The National Retail Federation estimates that total spending for Valentine’s Day in 2024 will be $25.8 billion. While the billion dollar estimation is high, it is down slightly from the $25.9 billion estimated by the source in 2023.
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Consumers will spend an average of $185.81 on the holiday, the same source estimates.
Some couples are more celebratory of Valentine's Day than others. In 2024, 29% of people will not be celebrating through gift purchases and elaborate dates. However, they are expected to treat themselves on Feb. 14, or enjoy an evening out with friends. A mere 3% of people celebrate anti-Valentine's Day, according to the source.
The top five gifts that consumers plan on giving their partners this year are candy, greeting cards, flowers, an evening out and jewelry.
It is estimated by the source that 57% of people will be gifting candy this year, 40% greeting cards, 39% flowers, 32% an evening out and 22% jewelry, rounding out the top five popular gifts.
Americans dish out billions combined for Valentine's Day. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
Retailers that sell those types of goods are anticipated to profit handsomely around Valentine's Day.
Here are the gifts that Americans are expected to buy for Valentine's Day — and how much they're likely to spend on these items.
- Flowers
- Candy
- Clothing/lingerie
- Greeting cards
- Jewelry
1. Flower companies: Total expected spending $2.6 billion
Flowers are a classic way to show love to a significant other. 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.
In 2019, the online floral retailer The Bouqs Co. told FOX Business that the company typically racks up more than $1 million per day in sales leading up to occasions including Mother’s Day or Valentine’s Day.
"I was amazed to find out that 80% of the people who buy flowers are women buying for women."
Christina Stembel, founder and CEO of Farmgirl Flowers, a direct-to-consumer e-commerce flower company, learned that although massive marketing campaigns were geared toward men during Valentine’s Day for flowers, it was women who were often the buyers.
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"When I started researching the flower space, I was amazed to find out that 80% of the people who buy flowers are women buying for women," Stembel told FOX Business in 2019.
Flowers have become a Valentine's Day staple. (iStock / iStock)
2. Candy companies:Total expected spending $1.8 billion
Americans begin to see heart-shaped chocolate boxes appear on shelves shortly after Christmas. Both chocolates and sweet candy are popular gifts to buy for others around Valentine's Day.
As one of the biggest chocolate and sugar confectionery manufacturers in the country, Hershey’s stands to profit quite a bit on Valentine’s Day in 2024 by advertising well-known brands such as Reese’s, Twizzlers and Kit Kat.
In fact, Reese's had an ad during the 2024 Super Bowl unveiling their new caramel peanut butter cups.
Americans begin to see heart-shaped chocolate boxes appear on shelves in January.
For Valentine's Day, Hershey's packages many of its products in heart-shaped boxes to drive up revenue even more. A company spokesman indicated that Valentine's Day is ranked as the company's fourth-biggest season behind Halloween, Easter and Christmas.
Smaller companies also make a huge profit on Valentine's Day, though the price of tasty chocolate treats has increased over the years.
A box of chocolates is a classic gift to give your valentine, causing companies selling the treat to see massive profits during the occasion. (iStock / iStock)
Dan Abel Jr., son of the Chocolate Chocolate Chocolate Company's founder, told FOX Business in 2022 that about a third of their overall revenue comes just from Valentine's Day. The Valentine's preparations begin before February, he says.
"We spend part of December and all of January making truffles and heart boxes, marshmallow hearts, caramel hearts," Abel said.
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3. Clothing/lingerie: Total expected spending $3 billion
Clothing and lingerie companies bring in big earnings for the Valentine’s season. Victoria's Secret stands as the biggest lingerie retailer. Victoria's Secret & Co. is the parent company of both Victoria's Secret and PINK. Victoria's Secret previously fell under L Brands, but became independent in August 2021.
Adore Me also drives an increase in sales around Valentine's Day.
Adore Me is a New York-based lingerie business that has seen enormous growth since launching in 2012. Morgan Hermand-Waiche, the founder of Adore Me, told FOX Business back in 2017 that sales volume typically picks up three to five times on a daily basis around Valentine’s Day season.
The founder, who launched the business as a start-up out of his dorm at Harvard, also talked about the growth the company has seen since its start.
Valentine's Day is the second-biggest holiday for Hallmark. (Mohammed Elshamy/Anadolu Agency/Getty Images/File / Getty Images)
"I started Adore Me still as a student; my Harvard Business School professors were my first investors," Hermand-Waiche said. "Since its inception, [we] have experienced exponential growth. In 2012, our revenues were $1.1 million; in 2013, they grew to $5.6 million; by 2014, we were grossing $16 million; and in 2015, we raked in $42.6 million."
Savage x Fenty, Rihanna's lingerie line is another company that puts a large emphasis on marketing around Valentine's Day. Although the brand started off as an online retailer, many shops are popping up across the United States.
4. Greeting cards: Total expected spending $933 million
Greeting cards pair nicely with any Valentine's Day gift, and companies like Hallmark are expected to profit enormously around Valentine's Day as it's the second-biggest holiday for the company behind Christmas.
The company's website indicates the first Hallmark Valentine's Day postcards were sold in 1910, with the first greeting cards hitting shelves a few years later in 1916.
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Now, the company sells millions of cards each year for the holiday in a variety of designs for anyone, from significant others to parents to friends.
5. Jewelry: Total expected spending $4.9 billion
Jewelry companies also profit well during the Valentine’s Day season. Jewelry is one of the most common categories of gifts given around the holiday.
Some popular jewelry retailers during Valentine's Day are Tiffany & Co., Mejuri, Blue Nile and Kay Jewelers.
Many also choose Valentine's Day to pop the question. In fact, it's one of the most popular days of the year to get engaged, helping boost jewelry shops' profits.
