The price of Halloween candy in the United States continues to rise, with candy and gum prices up 13% compared to last October, according to retail price tracker Datasembly. This marks the second consecutive year of double-digit inflation in the candy aisle. The increase is more than double the 6% increase in all grocery prices. The high prices have led some consumers to change their buying habits, with about one-third of U.S. consumers planning to trade down to value or store brands. The price surge is primarily attributed to weather-related factors, with cocoa prices at 44-year highs due to heavy rains and limited production in West Africa.
The rise in candy prices is expected to continue in the first half of 2024, according to market research firm Circana. The main cause is the weather, with El Nino conditions causing drier conditions in West Africa, where cocoa production is heavily concentrated. Kelly Goughary, a senior research analyst with Gro Intelligence, stated that Ivory Coast, which produces around 40% of the world’s cocoa, is already experiencing one of its worst droughts since 2003. Additionally, global sugar prices are at 12-year highs, mainly due to factors such as India’s recent ban on sugar exports and decreased output in Thailand. These rising costs, along with increases in labor, packaging, and ingredient prices, are driving up the overall prices of candy.
The impact of higher candy prices is evident in the demand for Hershey Co.’s products, as the company acknowledged a decline in sales volumes in the July-September period. In response, Hershey’s President and CEO Michele Buck stated that the company is striving to meet consumers’ needs with value offerings and various price points. Discount grocer Aldi is also adjusting its prices, with a 250-piece variety pack of Mars Inc. chocolate bars now priced at $24.98, compared to $19.54 two years ago. As consumers face stretched budgets, affordability remains a top priority, with many opting for more cost-effective options, such as store brands or value packages.
