Escalating Costs Haunt Consumers: U.S. Candy Inflation Registers Double-Digit Growth for Consecutive Halloweens

Relief appears elusive for consumers daunted by the escalating cost of Halloween candy.

For the second consecutive year, inflation affecting candy prices in the U.S. has reached double digits. According to Datasembly, a retail price tracking service, the cost of candy and gum has surged by an average of 13% this October compared to the same month last year. This is notably higher than the 6% increase observed in the prices of all grocery items. Furthermore, this comes on top of a 14% rise in the prices of candy and gum witnessed in October 2022.

Jessica Weathers, a small business proprietor in Shiloh, Illinois, expressed her disbelief at the spiraling costs. “Allocating $100 for candy is simply illogical to me,” she said. Ordinarily, Weathers stocks up on ample quantities of candy for school and church events as well as trick-or-treaters. This year, however, she has limited her purchase to just two bags and intends to turn off her porch light when the candy runs out on Halloween night.

Adjustments in consumer behavior are also evident. Market research firm Numerator reported that approximately one-third of U.S. consumers intend to opt for value or store brands instead of premium labels when procuring candy this Halloween.

Climatic factors primarily account for the soaring prices. Cocoa, a critical raw material for chocolate, is experiencing a 44-year high in trading prices, attributed mainly to heavy rainfall in West Africa that has hampered last season’s production. Current El Nino conditions are contributing to arid conditions in the region, which are expected to persist until the spring. Dan Sadler, Principal of Client Insights for Circana, a market research firm, predicts no respite in these prices at least until the first half of 2024. Moreover, West Africa—responsible for approximately 40% of global cocoa production—is in the throes of one of its worst droughts since 2003.

Global sugar prices have also reached 12-year peaks, according to industry analysts. India, the world’s second-largest sugar producer, has prohibited sugar exports for the first time in seven years, following a poor monsoon season. Sugar production in Thailand is similarly compromised.

These increased raw material costs, in conjunction with rising labor, packaging, and additional ingredient costs, are driving up the price tags on various types of candy.

For instance, discount grocery chain Aldi has listed a 250-piece variety pack of Mars Inc. chocolate bars, featuring Milky Way, Twix, and Snickers, for $24.98. The same package was priced at $19.54 just two years ago.

Hershey Co. acknowledges the adverse impact of these heightened prices on consumer demand. Despite increasing its prices by a minimum of 7% in each of the past seven quarters, the company reported a 1% decrease in North American confectionary sales volumes for the July-September quarter. Hershey’s President and CEO Michele Buck stated in a recent investor conference call, “We are cognizant that value and affordability are critical for consumers as budgets get tighter.” Buck also mentioned that Hershey aims to accommodate consumer demand by offering various pack sizes at different price points in value stores.

Frequently Asked Questions (FAQs) about Candy Inflation

More about Candy Inflation

• Datasembly Retail Price Tracker
• Numerator Market Research
• Circana Market Research Firm Report
• Global Cocoa Price Trends
• Global Sugar Price Trends
• Aldi’s Current Candy Promotions
• Hershey Co. Quarterly Reports