St. Patrick’s Day is a $7.7 billion consumer event
According to tradition, Saint Patrick passed away on this day back in 461 AD. While the parades in New York, Boston, and Chicago are widely recognized in the U.S., they weren’t the first celebrations. The earliest recorded St. Patrick’s Day Parade took place in St. Augustine, Florida, in 1601, and festivities there can be traced back even further to 1600. This suggests that Irish wakes have been part of American culture for over 400 years.
There’s a saying that everyone feels a little Irish on St. Patrick’s Day, but that’s not entirely accurate. The National Retail Federation (NRF) reports that 60% of consumers plan to mark the occasion this year. That leaves about 40% who aren’t really that interested. I mean, I’ve had my fair share of green beer, thanks. But for those who do celebrate, it seems like they’ll be spending quite a bit, making this holiday one of those commercially significant minor events in the U.S. They’re expecting an average spend of $47.45 per person, contributing to a total holiday expenditure of $7.7 billion, marking an increase from last year’s $7 billion.
It’s quite a chunk to spend on a holiday that doesn’t involve gifts, travel, or extensive shopping. St. Patrick’s Day isn’t quite on the level of Christmas or even Valentine’s Day; it creates a sort of “daily demand shock” that focuses spending on specific categories over a limited time. In this case, people are putting down their money mainly for food, drinks, clothing, and going out. That’s where the real interest lies economically.
The breakdown of spending categories is pretty clear. Leveraging data from Prosper surveys, the Medill Spiegel Research Center found that 51.9% of folks plan to spend on food, while 43.5% are earmarking money for beverages. Apparel accounts for about 32.1% and decorative items at 25.4%. So, it’s not really a holiday driven by gifts; rather, it’s more about the basic essentials: eating, drinking, dressing up, and socializing.
Pot of gold at the end of the rainbow
The places where people plan to spend offer an insightful look as well. The Medill survey indicates that 38.5% anticipate shopping at grocery stores, 29.1% at discount retailers, 19.8% at bars and restaurants, and 19.6% at department stores. This suggests that it’s not just a holiday for pubs; most of the spending happens before anyone heads out. People are stocking up on food, alcohol, and festival supplies. However, on-site spending also sees a boost, especially in cities where parades funnel foot traffic to bars and restaurants.
One of the biggest winners here is alcohol. Research shows that a substantial number of St. Patrick’s Day celebrators gravitate toward buying drinks. About 70% prefer beer, followed by 34% who choose spirits and 29% opt for wine. Interestingly, beers like Guinness and Smithwick’s see a significant spike in household purchases during March compared to an average month, highlighting the seasonal nature of this holiday.
Hospitality venues also benefit a lot from the occasion. According to NielsenIQ, St. Patrick’s Day is a prime opportunity for bars and restaurants, with 32% of consumers planning to visit these establishments. Interestingly, 53% expect to spend more than they typically would on a regular outing. This holiday tends to be particularly favorable for restaurants and bars trying to fill seats during the usual slow March period, with spending generally focused on brunch, happy hours, and evening outings.
Young people look more Irish than baby boomers on St. Patrick’s Day
Demographics tell a compelling story too. The Medill research indicates that participation is highest among Gen Z, Millennials, and Gen X, with these groups making up most attendees. Notably, 61% of younger consumers plan to celebrate, contrasted with just 48% of baby boomers and older folks. This distinction matters because younger generations are more inclined to spend on social events, themed foods, and festive outings. It’s not just tradition keeping St. Patrick’s Day alive; it also aligns well with the consumption habits of younger and middle-aged Americans.
Bringing all this together, St. Patrick’s Day appears less like a quirky holiday and more like a tightly packed seasonal consumer event. It generates billions in national expenditures, creates noticeable spikes across grocery, beverage, retail, and hospitality industries, and conveniently falls during a profitable stretch in the calendar—after winter and just before Easter, making retailers quite happy. There’s a quick rise in demand felt everywhere.
Retailers may want to express their gratitude to the Irish for providing this spirited enthusiasm and spending. Although, it’s important to remember that not all Irish folks have a reputation for financial acumen. A story shared by Ronald Reagan at the 1987 St. Patrick’s Day Luncheon comes to mind: it’s about an Irishman walking down the street with a bag over his shoulder. A passerby asks, “If you can guess how many potatoes are in that bag, I’ll take one.” The Irishman responds, “If you guess right, you can have both.”
