The sweet excitement of Halloween is coming with a bittersweet twist this year — higher candy prices and noticeably less chocolate. Shoppers across the U.S. are expected to spend more on trick-or-treat sweets, but their bags might be filled with fewer chocolate bars and more gummy treats or pumpkin-spice-themed candies.
Experts say rising cocoa prices are the major reason behind this shift. Cocoa, the key ingredient in chocolate, has become significantly more expensive due to poor harvests in West Africa, where most of the world’s cocoa is grown. As a result, candy makers — from artisan chocolatiers to large corporations — are cutting costs, reducing chocolate content, and shrinking package sizes to manage expenses.
Candy Prices Climb Higher Than Ever
Halloween candy prices have jumped nearly 11% compared to last year, almost four times the overall inflation rate, according to a recent analysis of NielsenIQ data. Americans spent around $7.4 billion on Halloween sweets in 2024, up slightly from 2023. Despite this growth, consumers are getting less for their money.
Small chocolate businesses, like Escazú Chocolates in Raleigh, North Carolina, are especially feeling the pressure. The company sources its cocoa from Latin America and pays small farmers well above the commodity price to ensure fair wages. However, the recent spike in cocoa costs has forced Escazú to make adjustments, such as reducing hot chocolate sizes and moving to a lower-rent location.
Co-owner Tiana Young said additional tariffs — including those affecting aluminum used in packaging — have increased costs across every part of production. “The tariffs have hit every single piece of what goes into every single thing,” she said.
Shrinkflation and Sweeter Substitutes
For large candy companies, the solution has been subtle but strategic. Shrinkflation — selling smaller quantities for the same price — is becoming common. Brands like Hershey and Mars are adjusting their “price pack architecture,” meaning customers will see fewer chocolates per bag without noticing a big jump on the price tag.
Others are lowering cocoa content and adding more sugar to maintain profits. Some bars that used to contain 75% cocoa now contain closer to 65%.
Meanwhile, gummy and chewy candies are enjoying a rise in popularity. Younger consumers, in particular, are drawn to tangy treats like Sour Patch Kids, which saw a 7% increase in sales. These candies are cheaper to make and don’t rely on costly cocoa.
To further cut costs, companies are experimenting with new flavors, like cinnamon-toast KitKats, which replace expensive chocolate with flavored fillings.
Cocoa Prices and Climate Change
The root of the issue lies in the cocoa fields of Ghana and the Ivory Coast, which produce about 60% of the world’s cocoa. Recent poor harvests linked to climate change have severely impacted global supply. Cocoa futures soared by 178% in 2024, following a 61% jump in 2023.
Even though cocoa prices have recently fallen, candy manufacturers are still selling products made with beans purchased at the peak of the price surge. Added costs from tariffs, packaging, and energy continue to drive up prices on store shelves.
According to Groundwork Collaborative, Hershey’s variety packs rose 22%, Mars packs increased 12%, and Reese’s cups are up 8% compared to last year. Even gummy brands like Sour Patch Kids have seen prices climb by nearly 9%.
For candy lovers, it means one thing — Halloween 2025 might still be sweet, but it’s definitely not cheap.
