Question of the Day: How much do consumers spend on pumpkin flavored products in a year?
For coffee brewers, pumpkin-spiced latte sales are grounds for celebration.
Answer: $511 million
- Do you tend to spend more money on seasonal items like pumpkin-spiced lattes? Why or why not?
- What is a potential opportunity cost if a person spends between $5-6 on a pumpkin-spiced latte once per week?
- What are some other examples of products that increase in popularity at different times throughout the year?
Behind the numbers (ABC10 NEWS):
"Why are we so obsessed with pumpkin spice-flavored items? Americans spend more than $500 million on pumpkin spice products each year, according to data from Nielsen. There’s a psychological reason behind this trend.
“If it's just a seasonal, limited time only, you're more likely to consume it multiple times over that same time period than if it was spread out over a long period of time,” said Jadrian Wooten, an economics professor at Virginia Tech.
“The longer it’s been since you had it, you have very fond memories of it. So a really famous example is the McDonald's McRib that just sort of comes out at random times. You just sort of forget what things tasted like,” he explained."
Sharpen your students' budgeting skills with NGPF's Budgeting unit!