Halloween Chocolate Prices Soar, NPR Reports

For the second consecutive year, Halloween chocolate prices have surged, making popular sweets more expensive for consumers. According to recent reports, the cost of ingredients like cocoa has nearly doubled, significantly impacting prices for Halloween candy.

Rising Costs of Chocolate

Since February 2020, candy prices, including chocolate, have escalated by 38%. A primary factor behind this increase is the soaring price of cocoa, which has reached historic highs due to consistent shortfalls in harvests over the past three years. The majority of the world’s cocoa supply originates in West Africa, where farmers are grappling with severe weather, climate change, and diseases affecting aging cacao trees.

Impact on Major Brands

Major chocolate manufacturers, including Nestlé, Lindt, Hershey, and Mars, have responded to rising cocoa costs by increasing their prices. Additionally, these brands have started to implement changes in their products to control costs. According to David Branch, a market analyst at Wells Fargo’s Agri-Food Institute, some companies are using more fillers and reducing actual cocoa content.

• Reese’s has introduced a Halloween-themed peanut butter cup called “White Ghost,” which is coated in white creme instead of traditional chocolate.
• KitKat is marketing Halloween flavors such as “Ghost Toast” and “Witch’s Brew,” both featuring minimal cocoa content.

Changing Consumer Behavior

Consumers are noticing the effects of these changes firsthand. Many report that chocolate bags have become smaller, leading to a phenomenon known as shrinkflation. Stephanie Espinosa, a resident of Babcock Ranch, Florida, expressed concern over how smaller packages are affecting her Halloween candy budget as she prepares for throngs of trick-or-treaters.

This shift isn’t without consequence. While shoppers are still spending more on chocolate treats, they are purchasing fewer items as they pivot towards less expensive alternatives. Sales of non-chocolate candies, such as gummies and sour options, are growing significantly faster. Retail data firm Circana has observed that while the overall expenditure on chocolate remains high, the quantity bought is on the decline.

Halloween Spending Trends

Despite these challenges, Halloween remains a prominent consumer holiday. The National Retail Federation predicts spending could exceed 2023’s record, with an average of $114.45 anticipated per shopper. Consumers continue to seek festive options, allowing them to enjoy the Halloween spirit, even amid rising prices.