Party City recently filed for Chapter 11 bankruptcy, with the high cost of helium partly to blame. Joe Raedle/Getty Images
The retail chain Party City has filed for Chapter 11 bankruptcy. The last couple of years have been rough for the event décor business, with the pandemic making parties a fairly rare occasion. But another big reason Party City has struggled is the high cost of helium.
While global supply chains for many products have generally smoothed out, we’re still in what experts are calling Helium Shortage 4.0. And Party City isn’t the only retailer being impacted.
When Kate Luneva launched Wow Balloons in the Dallas-Fort Worth area in 2019, helium was not cheap. But she was able to get full tanks from her supplier — until six months ago.
“They started selling half-tanks instead of the full tanks,” Luneva said, “because they couldn’t get enough helium for everyone.”
Before the pandemic, a full tank of helium cost Luneva $195. Now, it’s $350. Luckily, Luneva’s business mostly uses regular air to fill its balloons, though helium is still available for customers. Air does not lift balloons as high, but it has kept her business afloat.
“There are definitely a lot of businesses for whom helium arrangements are 100% of their income,” Luneva said.
While helium balloons are not 100% of Party City’s revenue, they are the big traffic driver, said analyst Karru Martinson at Jefferies.
“People come in for a balloon, and they’ll, at the same time, be like ‘Oh, I need party favors. You know, we should get a piñata too,’” Martinson said.
Party City started scrambling to find helium last year. “The U.S. Bureau of Land Management plant, [which] supplies about 8% of the global helium, went down at the beginning of the year,” Martinson added.
That drop was caused by worker safety concerns; fires and explosions closed other plants around the globe.
Commercial helium is typically a byproduct of refining natural gas. But since it’s used for everything from cooling down MRI machines to making semiconductors, a helium mining industry is emerging in North America.
“The price of helium has risen to the point where it can be economically viable to explore for that gas and drill for that gas, just for the helium,” said Phil Kornbluth, a longtime industry consultant.
Helium prices have nearly doubled since 2021, he said. Kornbluth expects the shortage to ease — but not until 2024.
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FAQs
Yes, exceptions include: Helium tanks. Custom & personalized items (US only) Partial Party Kits - Party Kit components may not be returned individually.
Why is helium getting so expensive? ›
Helium is getting expensive because it is a finite resource underneath the earth's crust. Some scientists say the gas could run out as early as in 25 years' time.
Does Party City charge extra for helium? ›
When you buy foil balloons from Party City, we fill them for free at the store. When you buy latex balloons from us, we can fill them in store for a small fee. You can expect the following price ranges to fill balloons with helium: Foil balloons: $2.50 to $19.
Is there a helium shortage in 2024? ›
“Helium Shortage 4.0 is over. It's not 'maybe it's over,' it's over,” declared Phil Kornbluth of Kornbluth Helium Consulting, at gasworld's European Specialty Gas Summit 2024. As of early 2024, helium supply has surged, making it easier to secure new stocks.
Can I bring my own balloons to Dollar Tree for helium? ›
Dollar Tree stores often provide helium balloon filling services, but it's typically for balloons purchased in-store. Policies regarding helium filling may vary depending on the location, so it's advisable to inquire with your nearest Dollar Tree store to get accurate information.
Will Walmart take back empty helium tanks? ›
If the tank is no longer needed, take it back where you got it. Many Walgreens, Walmart, and Ace Hardware locations offer trade-in or disposal/recycling programs.
Are balloons a waste of helium? ›
Balloons are also a waste of Helium, a finite resource. Balloons can travel thousands of miles and pollute the most remote and pristine places. A 501(c)3 nonprofit organization - All donations are tax deductible.
Why should we not use helium in balloons? ›
Inhaling helium displaces oxygen, putting you at risk of side effects such as dizziness, loss of consciousness, and even death. You inhale helium from a balloon, and almost as if by magic, you sound like a cartoon chipmunk. Harmless as it may seem, though, inhaling helium can be dangerous — deadly, in fact.
What can I use instead of helium for balloons? ›
Technically any gas that's less dense than air will make a balloon float. In comparison, Hydrogen is half the density of helium and can be better at making a balloon float. Hydrogen gas generates good buoyancy but is not one of the popular nonhelium balloon decoration ideas, since it is explosive.
Why are Party City balloons so expensive? ›
Balloons are filled with helium, and the helium is what is expensive. While helium is what makes balloons float, it is a finite resource. And some say it will run out in merely 25 years, according to CNA. And like with most things, during helium shortages, the cost of the resource goes up.
Instead of filling the balloon with helium, you need to fill it with hot air. You can do this by using a hairdryer, holding the end of the balloon close to the hairdryer and letting the hot air fill it up. Once it is full of hot air, tie off the end of the balloon and watch it float!
What is cheaper than helium? ›
The Advantages of Hydrogen for Balloons
Hydrogen is better if you require a more substantial lift for your balloons as it is lighter than helium. It is also much easier to make than helium, making it the cheaper solution to your balloon needs.
Will the Earth run out of helium in 15 years? ›
More serious helium shortage is on the horizon, 10 to 20 years from now once the Federal helium reserve runs out and if new reliable supply cannot be maintained.
Why can't helium be made? ›
Helium can be found in abundance all over the universe. In fact, it is the second most abundant element known to man. Because of its chemical composition, it is not possible to produce helium artificially, which is why it is extracted from natural gas wells.
Where does the United States get their helium from? ›
Helium is a non-renewable natural resource that is most commonly recovered from natural gas deposits. Geologic conditions in Texas, Oklahoma, and Kansas make the natural gas in these areas some of the most helium-rich in the world (with concentrations between 0.3 percent and 2.7 percent).
Can you return unused helium tank? ›
Take your helium tank back to the supplier if it is reusable. Many helium tanks can be reused. Return your helium tank to the supplier that you purchased it from. Many stores will even offer you cash rewards for tanks that are returned in good condition.
Can I return a helium tank to Target? ›
Return details
This item must be returned to any Target store. This item must be returned within 90 days of the date it was purchased in store, shipped, delivered by a Shipt shopper, or made ready for pickup. See the return policy for complete information.
How to get rid of a helium tank? ›
Balloon Time tanks are fully recyclable. After removing the easy-fill nozzle from the empty cylinder, take the tank to your local council recycling centre or place with your household recycling.
