This Halloween, inflation might be eating into your candy stash.
The cost of Halloween candy has been rising steadily. Last October, the price of Halloween candy in the U.S. was 13% higher than in 2022, with U.S. consumers spending $3.6 billion on candy.
This year, Halloween spending is projected to break these records, with half of shoppers planning on spending more than $51 on candy this season. In 2023, Americans spent an average of $31.93 on Halloween candy.
Why are prices so high?
The price of chocolate skyrocketed in 2024 due to supply chain disruptions and damaging weather conditions. Cocoa–the key ingredient in chocolate–reached an all time high (more than $11,000 per metric ton) in April, with the price nearly tripling from January to June.
West Africa makes up about 60% of global cocoa production. It has seen particularly heavy rain this fall so far, which makes the crop more susceptible to disease–forcing farmers to take precautions, which in turn increases the cost of production.
The cost of other ingredients, including sugar and wrapping paper, has also increased, as have transportation costs. Brazil, a key sugar producing country, faces unfavorable La Niña weather conditions with below-normal rainfalls. India, another top sugar producer, banned sugar exports in 2024 as its production dropped. As the international supply has been constrained, prices have risen.
Prices may soon face more upward pressure due to regulatory actions from government agencies like the Federal Trade Commission (FTC).
Earlier this year, candy company Mars, Inc., announced its intention to purchase Kellanova, the maker of Cheez-Its, for nearly $36 billion. The merger would empower the two companies to better compete with the biggest candy makers on the market and provide consumers with more options at a more affordable price.
However, it likely would undergo intense scrutiny from FTC Chair Lina Khan. In 2013, the progressive activist bemoaned what she dubbed a “chocolate oligopoly” in Time magazine, which she blamed for a supposed lack of variety in the candy aisle. Ironically, such a merger between Mars and Kellanova will expand the chocolate marketplace and spur more competition—igniting positive benefits for consumer welfare.
How are candy makers reacting?
In July, Cargill–a leading manufacturer of bulk chocolate for use in baked goods, ice creams and cereals–said it was considering alternative ingredients similar to cocoa to make its chocolate products.
But according to CNBC, four of the largest candy companies—Hershey, Mars, Ferrero and Mondelez (which makes Cadbury)–are protected (at least for this year) from some of these costs, thanks to long-term contracts that locked in prices.
Still, amid uncertain supply markets, candymakers are generating excitement with new products, contrary to Chair Khan’s claim of a lack of innovation. Hershey has revealed four new Halloween candies, including Reese’s Werewolf Tracks peanut butter cup and KitKat Ghost Toast. Mars announced its Halloween lineup in May, adding M&M’s Milk Chocolate Pumpkin Pie to its portfolio.
For Halloween, Tricks Are Still Wanted With Treats
This Halloween isn’t breaking records only for candy budgets. Spirit Halloween, the seasonal costume retailer, has opened a record number of seasonal stores this year: 1,525 locations in the United States and Canada. Skelly, the Home Depot’s 12-foot skeleton, went viral a few years ago and has already sold out for this year. And Target has added 1,300 new Halloween items to its lineup.
A retail trend picking up steam this year is “Summerween,” celebrating Halloween in the middle of summer. Michaels started selling Halloween goods in June—the earliest it has ever done so. Home Depot hosted a “Halfway to Halloween” event in April, selling limited quantities of Halloween items. And since 2019, peak Halloween item sales on Amazon have been earlier every year, according to Morning Brew and USA Today, with this year’s peak happening in early August.
Amid tightened budgets, consumers still want to treat themselves to holiday items. Halloween is the second biggest commercial holiday in the U.S., with a quarter of Americans claiming it as their favorite holiday.
While prices of sugar and chocolate may be spooky this season, it hasn’t dampened customers’ anticipation. More than a third of Americans now say they look forward to Halloween all year long.
Author’s Note: Krista would like to recommend ordering from French Broad Chocolates in Asheville, North Carolina. Ordering chocolates, gift cards, and subscriptions will help support the company’s efforts to recover from the catastrophic damage caused by Hurricane Helene.