Halloween is just days away and this year, trick-or-treaters might notice that their candy haul looks a bit different than it used to.
Chocolate lovers, prepare to be frightened. If reports are true, we're likely to see more gummy, chewy and hard candies this Halloween and less chocolate. And it's all because cocoa prices are sky-high.
Candy companies have been grappling with increasing cocoa prices for three years amid a dwindling cocoa inventory that continues to be hit by extreme weather and crop disease. Cocoa prices reached a record high earlier this year and have more than doubled since then.
"Since January 2024 it's gone up 100% in price. And since July 2022 it's up 230% in what the US dollar price of cocoa beans are," David Branch, an analyst with the Wells Fargo Agri-Food Institute, told KGO-TV.
Retail prices have increased as a result. But candy companies are taking steps to prevent as much of that price increase from being passed onto the consumer as possible.
One workaround is "shrinkflation," where you simply get less product or a smaller size at the same price point. This has been happening for years amid record-high inflation on a wide range of products, from toilet paper and shampoo to bread and potato chips. While that "fun size" chocolate bar might not look any smaller, you are undoubtedly getting less bars in the bag than in years past.
Another strategy many companies are using this Halloween involves a shift in product offerings, stocking store shelves with gummy, sour and hard candies instead of chocolate bars and treats. You'll probably even notice many variety packs with a mix of chocolate and non-chocolate treats.
"There's more options than ever because these confectionery companies are trying to diversify since chocolate is so expensive," Jaclyn Peiser, a retail reporter at The Washington Post, told Marketplace. "So, you're seeing more flavors, more varieties, more combination packs of candy than we may have seen in the last couple of years."
Other companies are pushing non-candy Halloween treats, such as mini bags of pretzels and chips or fruit snacks.
In any event, consumers don't appear to be spooked by the lack of chocolate this year. Americans are expected to spend approximately $3.5 billion on Halloween candy, according to the National Retail Federation.