According to The Sun, Halloween candy hauls may look different this year due to skyrocketing cocoa costs, industry leaders warn. Chocolate giants like Hershey and Mars are expected to shrink variety packs and candy bars as cocoa prices have doubled.
Challenges in Cocoa Production
The process of growing cocoa is incredibly sensitive, and this year, farmers have faced significant challenges due to adverse weather conditions. Cocoa primarily grows in West Africa, with major production in countries like Ghana and the Ivory Coast. However, these regions have been severely affected by the El Niño climate pattern over the past three years, resulting in drier conditions and dwindling supplies.
Limited Cocoa Supply and Increased Competition
With cocoa supplies dwindling, candy makers are competing for what remains of this year’s crop. David Branch, sector manager at Wells Fargo’s Agri-Food Institute, emphasized that cocoa is not like other agricultural crops that can be grown in various locations. “It takes a very specific site and temperature range to grow,” he explained.
According to the International Cocoa Organization, global cocoa production is expected to decline by 14.2% this season. Chocolate companies felt the pressure earlier this year during Valentine’s Day and Easter when cocoa prices were significantly lower.
Impact on Candy Prices
Michele Buck, the president of Hershey, reported a staggering 48.7% drop in the company’s operating profit compared to last year. However, Hershey assures that Halloween prices shouldn’t be affected by the changes, as this year’s crop looks promising.
“So far, we’re having really decent weather for this year’s crop,” Branch noted. “This will help boost supply, so we expect prices to come down.”
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Creative Solutions for Consumers
Consumers have noticed rising chocolate prices amid declining cocoa supplies, prompting some to seek creative ways to save money this Halloween. One parent even mentioned he would be handing out chips instead of candy as a cost-saving measure, according to Canadian outlet CHCH.
Industry Adaptations to Maintain Prices
To keep prices low, companies are focusing on producing more candies without chocolate, as industry experts report. Additionally, chocolate variety packs are anticipated to be smaller until cocoa production stabilizes, expected by September 2025.
Branch noted the prevalence of “shrinkflation,” where companies reduce portion sizes while maintaining the same price. For example, a two-pound bag of assorted candies might now weigh less than two pounds at the same price point. Companies may also alter their recipes by removing chocolate entirely and replacing it with nuts or wafers.
Chocolate’s Enduring Popularity
Despite these changes, chocolate remains the most popular candy, and there will be no shortage of it on the shelves this Halloween.
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