Overview
- U.S. stores are cutting prices on Hershey candy ahead of Halloween, with Jefferies and Nielsen data showing a sharp rise in discounted sales and Datasembly reporting that a mass retailer had put more than half of Hershey items on sale by early October.
- Circana data show chocolate unit sales were flat in the 12 weeks to Oct. 5 as prices rose 8%, while non-chocolate Halloween candy volumes increased 8.3%, signaling a shift toward cheaper gummy and sugar-based treats.
- Cocoa costs remain elevated after a 2024 spike above $12,000 per ton and are still near $6,000, and new U.S. tariffs on key exporters including a 21% rate on Ivory Coast and 15% on Ecuador are adding to manufacturers’ costs.
- Confectioners are leaning on promotions, limited-time seasonal items and portfolio shifts toward gummies, and are also reformulating some products by using more nuts or creams to reduce cocoa content.
- Executives say shoppers will still buy for the holiday but are hunting value, paying close attention to package sizes and timing purchases to promotions, with Halloween accounting for a large share of annual confectionery sales.