NATIONWIDE — Halloween trick-or-treat bags will be lighter and costlier this year, as candy prices have jumped 10.8% compared to last year—nearly quadruple the overall rate of inflation. The surge is being driven primarily by skyrocketing cocoa prices, forcing candy makers to implement “shrinkflation” and other cost-cutting measures.
The price hike continues a trend; Americans spent $7.4 billion on Halloween chocolate and candy in 2024, a 2.2% increase from 2023.
Consumers to See Less Chocolate, More Gummies
With worldwide cocoa futures rising 178% in 2024 due to poor harvests in Ghana and the Ivory Coast, producers are changing how they sell their treats:
- Shrinkflation: Consumers can expect less chocolate per package as companies like Hershey adjust their “price pack architecture” to reduce product amount without dramatically increasing the sticker price.
- Less Cocoa Content: Some chocolate makers are reducing the cocoa content in their bars (e.g., selling 65% content instead of 75%) and increasing the sugar to save costs.
- Gummy Boom: Expect more tangy gummies and non-chocolate items, as candy companies are boosting production of chewy, sweet treats to appeal to younger customers while saving on expensive cocoa. Special non-chocolate flavors, like cinnamon-toast-flavored KitKats, are also being launched.
- Tariff Impact: Small businesses are also being hit by tariffs affecting packaging materials like aluminum.
Economists predict customers will continue to pay high prices for chocolate through Valentine’s Day, as most producers are selling candy manufactured from cocoa beans purchased during the peak price period.
