Companies that profit the most from love around Valentine’s Day
While most Americans will be gazing into their loved one’s eyes on Valentine’s Day, a slew of companies will be busy looking at their earnings from purchases made for the holiday of romance.
In 2023, a little more than half of Americans polled said they planned to celebrate the romantic holiday — and planned to spend in record amounts.
The National Retail Federation estimates that total spending for Valentine’s Day in 2023 will be $25.9 billion, up from $23.9 billion in 2022.
Consumers will be spending an average of $192.80 on the holiday, the same source estimates.
The top five gifts that consumers plan on giving their partners this year are candy, greeting cards, flowers, an evening out and jewelry.
1.Flower companies: Total expected spending $2.3 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 that include Mother’s Day, Easter and New Year’s Day.
For Valentine’s Day, Americans go big — and in 2023, they’re expected to spend $2.3 billion on flowers and floral arrangements.
2.Candy companies: Total expected spending $1.8 billion
Americans begin to see heart-shaped chocolate boxes appear on shelves in January. 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 2023 by advertising well-known brands such as Reese’s, Twizzlers and Kit Kat.
3. Clothing/lingerie: Total expected spending $2.1 billion
Clothing and lingerie companies bring in big earnings for the Valentine’s season. Victoria’s Secret stands as the biggest lingerie retailer.
L Brands has two key brands under its belt for the V-Day season, Victoria’s Secret and Bath & Body Works, a personal-care retailer.
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.
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.
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 $6.2 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.
The National Retail Federation says 21% of people plan to gift their partner some sort of jewelry for Valentine’s Day in 2023. Though less jewelry is expected to be purchased in comparison to candy, greeting cards, flowers and an evening out, it is among the top give gift categories for Americans.
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