Candy Inflation In US Touches Double Digits Ahead Of Halloween

According to Datasembly, a retail price tracker, candy and gum prices in the country have increased by 13 per cent on average in October, compared to the same month last year. 

Experts said that the Ivory Coast, responsible for the production of 40 per cent of the world’s cocoa, is already exhibiting signs of one of the worst droughts for the region since 2003. ( Image Source :Getty )

Consumers in the US are witnessing double-digit inflation in candy for the second consecutive year. According to Datasembly, a retail price tracker, candy and gum prices in the country have increased by 13 per cent on average in October, compared to the same month last year. 

This increase comes as an addition to the 14 per cent surge in prices witnessed during October 2022, reported AP. The report cited Jessica Weathers, a small business owner in Shiloh, Illinois, who said, “The price of candy has gotten to be outrageous. It doesn’t make sense to me to spend $100 on candy.” The business owner told the news agency that this year, she has purchased only two bags of candy instead of the huge quantity she typically buys. Weathers added that she plans to switch off her porch light on Halloween when she runs out of candy. 

Halloween marks a popular holiday in the US and is celebrated on October 31 every year. As part of the celebrations, children dress up in costumes and go door to door in their neighbourhoods asking for candy. However, it seems the tradition will be affected this year as candy prices remain elevated to extreme levels. 

Numerator, a market research firm, added that it’s surveys indicated that about one-third of US consumers intend to trade down to value or store brands for purchasing candy for Halloween this year. 

Why Are The Prices Increasing?

The major factor behind this surge in prices is the weather. Heavy rains in West Africa limited cocoa production which, in turn, led to cocoa prices touching 44-year highs. Now the El Nino conditions in the region are making the area drier and are expected to last till spring. Dan Sadler, principal - client insights, at Circana, said, “There may be no price relief in sight, at least through the first half of 2024.”

Kelly Goughary, senior research analyst, at Geo Intelligence, noted that the Ivory Coast, responsible for the production of 40 per cent of the world’s cocoa, is already exhibiting signs of one of the worst droughts for the region since 2003. At the same time, sugar prices in the world are touching 12-year highs, he added.

Notably, India, the world’s second-largest sugar producer, recently imposed a ban on sugar exports for the first time in seven years due to deficit monsoon in the country, which impacted the harvest. Other producers like Thailand have also reported a fall in output. These costs, in addition to surges in prices of labour, packaging, and ingredients like peanuts, are further escalating prices for different types of candy. 

Impact On Businesses

Aldi, a supermarket chain, is currently marketing a 250-piece variety pack of Mars chocolate bars at $24.98, higher than the price of $19.54, at which the grocer sold the candy two years ago. Chocolate manufacturer, Hershey, recognised in the week that surging prices are impacting demand heavily. The company’s North American confectionary sales volume dipped 1 per cent in the July-September period, the report noted. Michele Buck, president and CEO At Hershey, in a conference call with investors on Thursday, said, “We know that value and affordability continue to be top-of-the-line for consumers as budgets are stretched.”