Impact of Inflation on Halloween Candy Prices

As Halloween approaches, U.S. retailers are ramping up discounts on Hershey Co. products. This follows a price increase by the company, which attributed the rise to tariffs and cocoa inflation, as reported by Reuters.

A survey conducted by Datasembly revealed that, by early October, more than half of Hershey’s candies were being offered at discount prices by a major retailer. In fact, according to an investment bank Jefferies, Hershey saw the most significant increase in discounted products out of 31 surveyed food manufacturers in the four weeks leading to October 4.

Interestingly, while customers are seeing discounts, overall sales of chocolate candy per piece have remained flat during the 12 weeks leading to October 5, despite an 8% increase in prices.

Kirk Tanner, the CEO of Hershey, mentioned in an earnings call that Halloween sales have not met expectations, prompting the company to rethink its seasonal products and marketing strategies.

Over the past year, the price of chocolate has surged almost 30% since last Halloween and has seen a staggering increase of nearly 78% over the past five years. According to FinanceBuzz, the average cost of a 100-piece bag of assorted Halloween candy has climbed to $16.39, a significant jump from $9.19 in 2020.

Experts attribute these rising prices to a mix of new tariffs, escalating food inflation, poor cocoa harvests in West Africa, and a global shortage due to climate change. To adapt, candy makers are reducing bar sizes and trying out new flavors, including fruit-flavored and chili-coated varieties. Traditional candy corn is also still available.

The National Retail Federation has noted that about 80% of Halloween shoppers anticipate spending more this year. Recent e-commerce trends indicate that practicality is influencing shoppers’ candy choices this season.