Halloween candy costs hit record high

Federal data released this week shows that prices for candy and gum increased by 7.7% over the past year. Over a two-year period, costs have climbed more than 18%, a rate that exceeds the average food inflation during that same timeframe. This price surge hits consumers just before they stock shelves for trick-or-treaters this weekend.

Chocolate is the primary driver of the increase. Drought and heavy rains in West Africa reduced cocoa harvests in recent seasons, pushing global prices upward. David Branch, sector manager with the Wells Fargo Agri-Food Institute, explained that the chocolate currently on store shelves was purchased in 2025. Because last year's cocoa prices were high, consumers are still paying for that expensive stock.

Global cocoa production has begun to rebound, but Branch noted that this supply relief will not immediately lower retail prices. He described consumer chocolate prices as sticky due to the lag time in production. Manufacturers also face higher costs for sugar, fuel prices affected by the war in Iran, and imports subject to U.S. tariffs.

Despite the rising costs, the National Retail Federation estimates that consumers will spend $13.5 billion on Halloween this year. This figure represents a 3% annual increase and sets a new record. The average spending per person is projected to reach $115, which is 55 cents more than the amount spent last year.

Small business owners are feeling the pressure of these input costs. Enna Grazier, who owns Enna Chocolate in New Hampshire, reported a 50% tariff on some holiday packaging and ingredients she planned to buy from Canadian suppliers. Grazier said the tariff forced her to change her sourcing plans. She described the situation as super frustrating because it disrupted her ability to plan far in advance for the season.

In response to high cocoa prices, some major candy makers have shifted their product lines toward gummy and sour options. Companies are launching items that avoid chocolate, such as KitKat's marshmallow-flavored Witch's Brew and Reese's White Ghosts. Data from market research firm Circana shows that while chocolate candy sales have increased for several years, shoppers are buying smaller quantities. Consumers are paying more for chocolate but receiving less of it per purchase.