Halloween Candy Prices Soar for Second Year Due to Rising Sugar and Cocoa Costs

US Halloween candy prices rise by 13%, driven by unprecedented 44-year high cocoa prices and 12-year high sugar costs due to inclement weather severely impacting yield.

Halloween candy prices have seen a remarkable increase for the second consecutive year, with an average rise of 13% compared to the previous October. This inflation is considerably higher than the 6% increase observed in overall grocery prices.
Cocoa and sugar prices are at historic highs due to adverse weather conditions, especially in West Africa and India, which have deeply impacted their production. Cocoa is trading at 44-year highs and sugar prices are at 12-year highs.
As a result of skyrocketing candy prices, consumers are rapidly altering their purchasing behavior. Approximately one-third of U.S. consumers are opting for more affordable value or store brands when buying candy for trick-or-treating.
Major chocolate companies like Hershey Co. and Mars Inc. are feeling the financial pressure due to increased ingredient costs. Despite raising their prices, these companies have noted a decline in demand and sales volumes.
Looking forward, experts suggest that relief from high candy prices may not be in sight until well into the first half of 2024. Meanwhile, companies are exploring alternatives, such as selling smaller sizes at less expensive prices, to meet consumers' budget constraints.