Halloween candy costs rise 7.7% nationwide

The National Retail Federation projects that Americans will spend $13.5 billion on Halloween this year, a figure that matches last year's record. This total includes purchases of candy, decorations, and costumes. However, the price of chocolate has climbed sharply, forcing many shoppers to buy less product for the same amount of money.

Federal data shows that the cost of candy and gum has increased by 7.7% compared to last year. Prices are up more than 18% from two years ago. The primary driver is the price of cocoa, which remains high despite recent improvements in the market. David Branch, who tracks the cocoa market for the Wells Fargo Agri-Food Institute, noted that the chocolate currently on store shelves was produced from cocoa purchased in 2025. He said that current lower prices will not appear in products until next year's production cycle.

Weather played a major role in these high prices. Drought and heavy rains in West Africa, where most cocoa is grown, reduced harvests. Additionally, high gas and diesel prices have increased shipping costs. These fuel costs are high due to the war in Iran. The increased expense affects both the transport of raw supplies from abroad and the delivery of finished candy across the United States by truck.

Shoppers are adjusting their habits in response to these costs. Data from the retail analytics firm Circana indicates that consumers have been buying less chocolate candy by volume for several years. However, total dollar sales have risen. This trend means households are spending more money to obtain a smaller quantity of chocolate. Some brands are also shifting product lines to avoid expensive cocoa. Companies like KitKat and Reese's have launched items coated in white cream or green marshmallow, branding them as ghosts or witch's brew.

Manufacturers are also grappling with rising input costs. Enna Grazier, who owns a small-batch chocolate company in New Hampshire, said that a 50% tariff applies to much of her holiday packaging and ingredients from Canada. She has had to source packaging from other suppliers and raised prices on some sweets over the past 18 months. Producers are also monitoring potential weather disruptions from El Niño and the ongoing impact of tariffs on packaging materials.

Despite higher unit costs, the National Retail Federation estimates that the average shopper will spend about $115 on Halloween. This amount is virtually identical to last year's per-person average. Top sellers this year include pumpkins and hot dogs. Retailers remain optimistic about the season, even as consumers report feeling the pinch at the register.

The broader economy continues to grow at an annual rate of 3.4% for the third quarter, according to the latest GDP data. While wages are not keeping pace with inflation, many consumers remain employed and continue spending. They are cutting back on air travel due to fuel costs but still purchasing large holiday items, such as $300 animatronic skeletons.