Are you spooked by the high price of Halloween candy? Not much relief in sight.
For the second year in a row, U.S. consumers are seeing double-digit inflation on candy aisles. Candy and chewing gum prices rose an average of 13% this month compared with last October, more than double the 6% increase in all grocery prices, according to data from retail price tracker Datasembly. In addition to this, candy and chewing gum prices will increase by 14% in October 2022.
“Candy prices are already ridiculously high,” said Jessica Weathers, a small business owner in Shiloh, Illinois. “It doesn’t make sense to me to spend $100 on candy.”
Weathers said she typically buys a lot of candy for trick-or-treating and events at school and church. But this year, she bought just two bags and planned to turn off the porch lights when she ran out of them on Halloween.
Other consumers are changing the way they buy. Market research firm Numerator said its survey shows that about one-third of U.S. consumers plan to switch to value or store-brand candy when buying trick-or-treat candy this year.
Weather is the main reason for price increases. Cocoa prices rose to a 44-year high after heavy rains during the West African season that began last autumn limited production. Now, El Niño is making the region drier and may continue into spring.
“Prices likely won’t come down until at least the first half of 2024,” said Dan Sadler, head of customer insights at market research firm Circana.
Kelly Goughary, senior research analyst at agricultural analysis firm Gro Intelligence, said Côte d’Ivoire accounts for about 40% of the world’s cocoa production. There are already signs This is one of the worst droughts since 2003.
Meanwhile, global sugar prices are at a 12-year high, Goughary said.India is the world’s second largest sugar producer after Brazil Recently banned sugar exports This is the first time in seven years that monsoon rains have affected the upcoming harvest. Production in Thailand has also declined.
These costs, along with increases in labor, packaging and ingredients such as peanuts, are driving up the price of various candies.
Discount grocer Aldi is advertising 250 chocolate bars from Mars Inc., including Milky Way, Twix and Snickers, for $24.98. Two years ago, the same package was advertised for $19.54.
Hershey Co., which has seen prices rise 7% or more in each of the past seven quarters, acknowledged this week that higher prices are taking a toll on demand. Hershey’s North American candy sales fell 1% between July and September.
“We know that as budgets increase, value and affordability remain top of mind for consumers,” Hershey President and CEO Michele Buck said on a call with investors Thursday. “
Barker said Hershey is trying to meet consumer demand through value stores and offering products in package sizes at different price points.
Svlook
