Shoppers preparing for Halloween face soaring costs at the grocery store as prices for candy and gum increase significantly faster than general food inflation. Federal data shows that candy and gum prices have risen 7.7% over the past year and more than 18% over a two-year period.
Cocoa Shortages Drive Up Chocolate Prices
The primary driver behind the price surge is chocolate, as severe drought and heavy rains in West Africa damaged cocoa harvests in recent seasons, sending global prices upward. Although global cocoa production is now recovering, David Branch, sector manager with the Wells Fargo Agri-Food Institute, explained that the chocolate currently on store shelves was made from cocoa purchased in 2025 when prices were still high.
While global cocoa prices have decreased from their recent peaks following a supply surplus earlier this year, consumer chocolate prices remain sticky. Branch stated that prices will not drop immediately due to production lag times, alongside rising expenses for other ingredients like sugar, expensive fuel costs driven by the war in Iran, and costly imports affected by U.S. tariffs.
Impact on Businesses and Consumers
Small business owners are also grappling with these financial pressures. Enna Grazier, owner of New Hampshire-based Enna Chocolate, reported dealing with numerous increased expenses, including a 50% tariff on holiday packaging and ingredients sourced from Canada. Grazier noted that these challenges forced her to seek alternatives, disrupt long-term plans, and adapt creatively.
In response to the expensive cocoa market, manufacturers have introduced alternative treats, offering more gummy and sour options alongside chocolate-free innovations like KitKat’s marshmallow-flavored Witch’s Brew and Reese’s White Ghosts coated in white creme. Nonetheless, data from market research firm Circana indicates that consumer demand for chocolate remains strong, with sales increasing over several years even as shoppers purchase smaller quantities for higher prices.
Despite the steep prices, overall consumer spending on the holiday is expected to set a new record. The National Retail Federation estimates that Americans will spend $13.5 billion on Halloween this year, representing a 3% annual increase to $115 per person.
