Valentine’s Day – A Business Perspective

Note: This guide was prepared by for Valentine's Day 2006 and is being recycled here for your convenience. If you need more current data associated with this subject, consult with Business Library staff.

The purpose of this guide is to direct you to information that relates to the subject of the business aspects of Valentine's Day. It is intended to assist students in locating material about Valentine's Day profits and market trends during this holiday season and to illustrate how library resources along with reliable internet websites can aid in quickly and effiiciently researching a topical issue. Staff are also available to assist should you have more in-depth questions regarding this topic.

Valentine’s Day is traditionally known as a day for lovers, but from a commercial standpoint it is one of the most lucrative holidays for businesses. There are four major holidays in the shopping calendar: Christmas, Valentine’s Day, Easter and Halloween. Valentine’s Day is celebrated by 84% of Canadians and of those, 60.9% spent an average of $100.89 per person on a gift for their significant other in 2006. In 2007 this is expected to go down to $97.27. 43% of those celebrating will buy a gift for other family and friends. The average Canadian male will spend $135.67, while females will spend only $68.64.

The most profitable Valentine's Day items are chocolate, cards and flowers. In 2002 Canadian greeting card sales were over $730 million, with over 614 million units sold. This makes Valentine’s Day the #2 holiday in greeting cards, following Christmas. 77% of adults aged 18+ buy chocolates as their Valentine's Day gift of choice, which creates high profits for companies such as Cadbury-Schweppes, Nestle and Hershey.

In Canada, consumers spend an average of $144 million on confectionaries such as chocolates and an estimated $20 million on flowers. Of the chocolate and candy purchased, 75% of box sales are motivated by gifting, 15% by sharing and just 10% for self-consumption.

In the United States, Valentine’s Day makes up 23% of the seasonal market in grocery, drug and mass merchandising stores. For candy sales, Valentine’s Day creates a profit of $1,011 billion, which is 17% of the holiday market. Valentine’s Day candy is the fastest growing candy market of the seasonal holidays. Hershey Chocolate and Russell Stover are the top two marketers and brands for Valentine’s Day candy.

Valentine’s Day is big business for companies who specialize in seasonal gift items. Some of the companies who earn a large profit during this holiday are:

1. Hallmark Cards, Inc.
2. American Greetings
3. CSS Industries, Inc.
4. Taylor Corporation
5. FTD, Inc.
6. Cadbury Schweppes
7. Nestle S.A.
8. Mars, Inc.
9. Hershey Foods Corporation
10. 1-800-Flowers.com

Chocolate & Candy Sales for Valentine's Day:

Flower Sales for Valentine's Day:

• 52% of Canadian males will buy flowers and will spend an average of $32.34
• 156 million fresh cut flowers are sold in Canada over the Valentine's Day
• UPS imports 14.8 million fresh cut flowers into North America from Colombia and Ecuador
• 65% of those buying flowers will purchase red roses; the other 35% are pink, peach, and yellow roses

Greeting Card Sales for Valentine's Day:

• Valentine's Day is the second most "sending holiday" for greeting cards
• Hallmark, with 2005 net revenues of $4.2 billion, is the industry leader
• Sales in Canada were over $730 million, with over 614 million units sold
• 66% of Canadians will purchase a Valentine's Day card(s) and will spend an average of $8.95

Other Valentine's Day Statistics:

• 70% of Canadian males celebrate and spend money on Valentines' Day, while only 63% of Canadian women do the same
• The most common age ranges to buy Valentine's Day gifts are 35-44 with 73%
• The least likely to buy Valentine's Day gifts are those between 18-24 with 45%
• 75% of those with children under 18 celebrate Valentine's Day
• 74% of those buying and giving gifts are married
• Those from the suburbs are most likely to buy Valentine's gifts at 75%
• Quebecers are the most likely to give Valentine's Day gifts at 65%
• Manitobans are the least likely at 56%
• Ontarians spend the most on Valentine's Day with an average of $116

Sources:

The information in this guide has been created using resources from the Business Library, specifically Business Databases such as DataMonitor 360, Market Research.com Academic, Standard & Poors and ProQuest.
Useful information can often be found online through industry-related resources, as well as newspapers and official company webpages.

"Canadian Business Sweet on Multi-Million Dollar Valentine's Day Splurge." Canada NewsWire 07/02/2006 10/01/2007

"Canadian Consumers "In Love" with Valentine's Day." Canada NewsWire 09/02/2006 11/01/2006

Carlton Cards . American Greetings. 13 Jan 2007

DataMonitor, "Canada Confectionary." Sept 2006 1-22. 08/01/2007

Investext . InfoTrac. 13 Jan 2007

"On Valentine's Day, Cupid is Dressed in Brown." Canada NewsWire 10/02/2005 11/01/2006

Kuryllowicz, Kara. "Healthy Indulgence." Canadian Grocer 120.6August 2006 78-82. 10/01/2006

Kohane, Jack. "Shine the spotlight on gifts and cards." Pharmacy Post 12.3Mar. 2004 32-34. 11/01/2006

"The U.S. Candy and Gum Market." Market Research.com Academic 6/1/2000 1-351.

Standard & Poors. NetAdvantage. 13 Jan 2007

By: Alie Visser - Business Library Staff