Halloween Candy Prices Soar: This Halloween, trick-or-treaters may have lighter candy sacks, but it’s not because they’ve cut back. Poor sugar and cocoa harvests in Mexico, India, and Ivory Coast have raised sweets prices. Candy prices are up 7.5 percent from last year and 20 percent since 2021, surpassing inflation.
Candy prices are rising due to numerous factors, including rising sugar and cocoa prices, which are at record highs in global wholesale markets. Hot, dry weather and high fertilizer prices cause poor yields. Sugar cane and cocoa, the main ingredients in many candies, are subject to low rainfall, which has affected Asia, Central America, and West Africa.
The US imports sugar from Mexico, which has seen sugar production plummet by almost 15% owing to drought. This has raised worldwide raw sugar prices to 27 cents a pound, the highest since 2011. Dry weather has also harmed sugar harvests in Asia. India, a major sugar producer, limits exports to protect its domestic supply.
For candy makers, sugar is a more adaptable ingredient than cocoa. When sugar cane is scarce or expensive, the industry can turn to sugar beets, a crop that grows in colder climates and can also be refined into sugar. Cocoa, however, grows primarily in regions near the equator, particularly in West Africa, which has experienced drought in the past year. This has led to a significant increase in cocoa prices, with recent trades exceeding $3,800 per metric ton, the highest level since the 1970s.
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The impact of these rising candy prices is compounded by the broader issue of inflation affecting various sectors, particularly food. While consumers may grapple with higher costs, candy makers, and food companies, in general, have raised their prices over the past year, often citing increased ingredient costs. This shift has allowed them to maintain profits despite selling fewer units of candy or food items.
Despite these challenges, Americans are expected to indulge in Halloween candy this year, with estimates suggesting they will spend $3.6 billion on these sweet treats, a 16 percent increase from the previous year. This uptick can partly be attributed to the fact that food companies have increased their prices, including candy prices.
Consumers are increasingly turning to private label products, even in the candy market, to mitigate rising costs. While private label candies historically had limited market share due to brand loyalty and subtle taste differences, this shift in consumer behavior reflects the ongoing impact of inflation on everyday purchases.
As Halloween approaches, the sweet delights may come in smaller quantities, but the spirit of the holiday and the love for candy remain as strong as ever.