Chocolate Prices Surge 30% This Halloween, Consumers Shift to Gummies

2025-11-01 economy

New York, Friday, 31 October 2025.
Chocolate prices have increased nearly 30% due to cocoa costs and inflation, pushing consumers towards gummies and sour treats as major companies like Hershey face economic pressures.

Rising Cocoa Costs and Inflationary Pressures

The surge in chocolate prices, marked by a near 30% increase compared to last Halloween, is largely attributed to escalating cocoa costs, which have tripled over recent years, peaking at more than $12,000 per ton in 2024 before settling at approximately $6,000 per ton by late 2025 [1][2]. The global cocoa deficit, the largest in 60 years, has been exacerbated by poor harvests in West Africa due to climate change, leading to tighter supplies and higher prices [1][3]. Additionally, inflationary pressures have contributed to the increased costs, with candy prices rising faster than the national inflation rate, reflecting a roughly 10% increase compared to the previous year [1][4].

Impact on the Candy Industry

Major candy manufacturers like Hershey Co. and Mondelez International are facing significant economic pressures as they navigate these rising costs. Hershey has reported that tariffs could add up to $170 million in expenses this year, further prompting a ‘low double-digit’ price hike in July 2025, although this increase was not specifically tied to Halloween pricing [1][5]. Mondelez, while expecting revenue growth in the fourth quarter of 2025, acknowledges the challenging market conditions caused by cocoa cost inflation [6]. The industry’s response includes shrinking product sizes and exploring new flavors to manage costs [2][7].

Consumer Behavior and Market Shifts

As chocolate prices climb, consumer behavior is shifting. More than half of shoppers have prioritized purchasing gummy candies for this Halloween, reflecting an 8.3% increase in non-chocolate candy sales in the weeks leading up to October 5, 2025 [1][8]. This marks a significant change in market preferences, with chocolate’s share of Halloween candy sales dropping from 52% last year to 44% this year [1][9]. Despite the price hikes, the National Retail Federation projects a record year for candy sales in 2025, with an estimated $3.9 billion spent on Halloween candy alone [1][10].

Economic Implications and Future Outlook

The broader economic implications of rising chocolate prices are multifaceted. Retailers are navigating a complex landscape of fluctuating costs and consumer preferences, impacting sales strategies during the holiday season. While the candy industry remains robust, the ongoing cocoa supply challenges and inflation are prompting companies to adapt through strategic product and pricing adjustments [2][11]. As climate change continues to affect cocoa production, and tariffs influence import costs, the candy industry will likely face ongoing pressures. However, the resilience of consumer demand suggests that the market may continue to grow, albeit with evolving dynamics [1][2][12].

Sources

chocolate prices Halloween candy