A 7.5% increase from last year. Halloween chocolate has become more expensive. Manufacturers have switched to gummy candies and licorice candies.
As Halloween approaches, many trick-or-treaters hoping for chocolate treats might find themselves disappointed. Recent findings from Circana, a market research firm, indicate that American candy companies are scaling back the availability of chocolate and promoting more affordable gummy and licorice alternatives instead. Among the popular choices this year are Mondelez’s Sour Patch Kids and Hershey’s Twizzlers Ghosts.
Dan Sadler, head of client analysis for the candy industry at Circana, observed, “There’s not much chocolate on store shelves.” He highlighted that non-chocolate sugary candies are experiencing significant growth, even as their prices rise by double digits. This change is occurring in the context of chocolate manufacturers facing shrinking profits and slower sales. Consumers are tightening their budgets and cutting back on expensive chocolate, while candy companies struggle with rising costs driven by pandemic-related supply chain challenges and a current cocoa bean shortage.
Branch, a manager at Wells Fargo’s agricultural food research department, noted that chocolate manufacturers are bracing for higher cocoa costs this holiday season, which will lead to increased retail prices. “Typically, chocolate companies hedge against fluctuating commodity costs like cocoa for periods ranging from six months to a year,” he explained.
Further complicating matters, NielsenIQ reports that the average price of chocolate has surged by over 40% since 2020, significantly outpacing the gradual easing of overall food inflation. Hershey recently announced additional price hikes this summer to address rising cocoa costs, but a spokesperson clarified that these increases won’t impact the Halloween candy available this year.
Sadler emphasized that while non-chocolate candy prices are also experiencing double-digit hikes, “Non-chocolate is catching up.” He pointed out that, when comparing the per-pound price of non-chocolate options to that of chocolate, non-chocolate remains the more affordable choice.
