Companies that profit the most from love around Valentine's Day
Americans are expected to spend nearly $26 billion for 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.
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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.
Retailers that sell those types of goods are anticipated to profit by high volumes during the Valentine's Day season.
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.
- Greeting cards
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.
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 said.
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.
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.
Dan Abel Jr., son of the Chocolate Chocolate Chocolate Company's founder, says 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 $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. 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.
"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 opening 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 $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.