Cost of Candy Soars by Record 13.1 Percent Before Halloween

At least $3 billion will be spent on candy this Halloween. Dreamstime/TNS

Candy prices in the United States are soaring right before Halloween due to rising inflation.

American consumers are expected to spend a record $10.14 billion on Halloween this year, up from $8.05 billion in 2021, according to the National Retail Federation.

Trick-or-treating and Halloween parties are making a comeback after the pandemic curtailed such festivities.

“Americans plan to spend more than ever to make this Halloween a memorable one,” said NRF president and CEO Matthew Shay.

The average consumer is expected to spend $102.74 on costumes, candy, decorations, and greeting cards, according to the NRF’s annual survey, conducted by research firm Prosper Insights & Analytics.

At least $3 billion will be spent on candy, reported Fox Business.

However, prices for the popular Halloween treats, jumped 13.1 percent in September from last year, according to the government report, putting a dent in many celebratory plans.

Meanwhile, millions of Halloween shoppers are buying up candy well in advance, because of the supply issues and rapidly rising costs.

The NRF survey found that 45 percent of Halloween buyers shopped early in September, while 39 percent planned to make their purchases. during the first two weeks of October.

Inflation Hits Trick-Or-Treaters

Average inflation rates were up by an annual basis by 8.2 percent last month, as consumer prices hit a 40-year high, according to the latest inflation data from the Bureau of Labor Statistics.

The Consumer Price Index (CPI) in September, rose 0.4 percent, while the core CPI surged 0.6 percent.

The core consumer price index, which excludes food and energy, is up 6.6 percent from a year ago, at the highest level since 1982.

Food prices, including candy, have increased by 0.8 percent, while the cost of food at home is up 0.7 percent.

Prices have also risen in all six major grocery store food categories.

“As the COVID pandemic has shifted to the background, inflation has become public enemy number-one. Awaiting the monthly update on prices at the retail level, it appears the year-over-year change in the CPI will remain elevated through the end of the year,” Bankrate.com senior economic analyst, Mark Hamrick told Fox Business.

“There has been relief from high gasoline prices which tend to aggravate consumers the most, but elevated food and shelter prices appear to be sticking around for a while as unwanted visitors.”

A view of the Candy Baron shop in Laguna Beach, Calif., on Nov. 18, 2020. John Fredricks/The Epoch Times

Cocoa and Sugar Shortages

One of the reasons behind the rise in candy prices is the rising cost of one key ingredient, sugar.

Refined U.S. sugar prices skyrocketed this year after drought slammed the beet-sugar crops used to make sugar in states up north.

Cocoa prices also took a hit in recent months, partly because of rising operational costs for chocolate makers.

The price surges for cocoa and sugar come just as the candy industry recovers from the supply chain chaos caused by the pandemic.

Another blow to the chocolate industry is the war in Ukraine, which affected cocoa producers, due to a lack of fertilizer.

Cocoa-producing countries are heavily dependent on fertilizer to grow the precious beans, due to the poor quality of the soil in those regions, according to Comunicaffe International, which covers the chocolate industry.

Fertilizer prices, which have been soaring in recent years, will likely worsen due to the ongoing Russia-Ukraine conflict.

Russia is one of the largest global exporters of important ingredients used to make fertilizer, such as nitrogen, phosphate, and potassium.

International sanctions on Russia are hurting global cocoa production by hampering the sale of fertilizer required to grow cocoa beans.

In addition, rising freight charges due to energy shortages are also having an effect on prices.

Hershey's chocolates for sale on a store shelf in the Manhattan borough of New York City on July 19, 2017. Carlo Allegri/Reuters

Hershey admitted back in August that it was unable to meet the demand for Halloween.

The Pennsylvania-based chocolate producer, hiked its prices 14 percent back in June, while its Swiss-based rival, Nestle increased its U.S. candy prices by 9.8 percent in July.

Many food companies are also reducing the size of their products to keep price rises from consumers, in what is referred to as “shrinkflation.”

Packages are being made smaller, while the price of the foodstuffs remains relatively the same.