US Halloween Candy Sales Drop 6.7% Amid Cocoa Shortages
US Halloween candy sales fell 6.7% through mid-October as high living costs and record cocoa prices drive consumers toward smaller bag sizes.
Halloween candy sales in the United States declined 6.7% in the month ending October 17 compared to the previous year. Data from NielsenIQ indicates that high living costs, including a nearly 40% year-over-year increase in gasoline prices and rising housing and clothing costs, are dampening consumer demand. While sales of small candy bags have grown, large and extra-large bags have seen the steepest declines.
Price increases are primarily driven by cocoa supply shortages in West Africa, specifically Ivory Coast and Ghana. The Bureau of Labor Statistics attributed record-high cocoa prices to poor weather, crop disease, and speculative trading, while conflict in Iran disrupted fertilizer supplies to the region.
To mitigate these costs, manufacturers including Mondelez International and The Hershey Company are utilizing reformulation, substituting cocoa butter with vegetable oils or adding almonds to reduce raw material exposure. Mars Inc. variety packs have also seen significant price increases over the last five years. Despite the slow start, the National Confectioners Association remains optimistic about the peak holiday period.
