As Halloween approaches, high cocoa and sugar prices are causing concern among consumers, leading to a shift towards salty snacks for trick-or-treating.
According to a report from Groundwork Collaborative and the Century Foundation, Halloween candy prices have risen by more than 15% in 2026, significantly outpacing overall inflation. This spike in prices may result in a reduction in treats this year, with a survey from LendingTree indicating that 35% of consumers planning for Halloween intend to forgo buying candy.
Consumer Spending on Candy
Aggregate expenditure in millions of dollars
The confectionery industry has been hit hard by rising ingredient costs, particularly from cocoa beans, sugar, and corn syrup, which make up approximately 65% of ingredient expenses. These supply shocks have driven up costs, as noted by the Bureau of Labor Statistics.
Extreme weather conditions in West African cacao-growing regions have led to cocoa shortages and record-high prices. Similarly, a drought in Mexico, a major source of sugar imports for the U.S., has decreased sugar supply, resulting in price hikes. Prices for sugar manufacturing and corn sweeteners have also risen significantly.
To mitigate the impact of higher costs, many companies have raised prices for their products. For example, Mondelēz’s sour gummy candy variety packs cost 39% more in 2026 than in the previous year, while Hershey’s Reese’s seasonal products saw a price increase of over 23%, according to the analysis by Groundwork.
Rising Consumer Candy Prices
Producer price index, consumer price index, and import price index for confectionery products
In response to these challenges, companies are not only raising prices but also reformulating their products to reduce reliance on expensive ingredients like cacao. Many manufacturers are incorporating more fillings and wafers to decrease the amount of chocolate in their products, catering to consumer preferences for diverse textures.
Some companies have even expanded their non-candy offerings for Halloween. Hershey, for example, introduced salty snacks to its Halloween lineup this year, including fun-sized packs of Pirates Booty and Skinny Pop. PepsiCo’s Frito-Lay also launched a Fright Night Mix of Doritos and Cheetos for trick-or-treaters, along with healthier snack options under its NKD line.
Hershey CEO Kirk Tanner emphasized the importance of innovation and brand relevance in navigating an inflationary environment, highlighting that consumer loyalty is earned through quality ideas rather than discounts alone.
“It’s not about price discounts and promotions,” Tanner stated at a Barclays conference. “Winning consumers over requires the best ideas and maintaining core brand relevance.”