Americans Project Record $13.5 Billion Halloween Spending Despite Candy Inflation
The National Retail Federation projects record Halloween spending as consumers face sharp chocolate price increases driven by cocoa shortages in Africa and U.S. tariffs.
Americans are projected to spend a record $13.5 billion on Halloween this year, with $4.1 billion dedicated to candy, according to the National Retail Federation. Despite these costs, 96% of shoppers plan to purchase candy, with an average individual spend of $115.14.
Candy and chewing gum prices rose 8.1% in August compared to the previous year, more than double the overall consumer price increase of 3.4%. Chocolate has seen the most significant surge; PwC reported a 15.5% jump to an average of $5.67 per package. Finance Buzz reports that candy prices have risen over 70% since 2021, climbing from an average of $9.91 to nearly $17.00 per bag.
Economist David Anderson attributes the price spikes to cocoa shortages in Africa, specifically Ivory Coast and Ghana, where droughts, flooding, and plant diseases ruined crops. Other contributing factors include supply chain disruptions affecting sugar and recent U.S. tariffs on 60 trade partners. While cocoa prices have since fallen, Ali Furman of PwC notes that because chocolate makers buy cocoa months or years in advance, these lower costs will not reach shelves this Halloween season.
To manage budgets, consumers are increasingly shopping at discount stores, comparing prices, and beginning their purchases as early as September. Some shoppers are shifting toward non-chocolate treats, which saw a more modest price increase of 1.8%.
