For millions of Americans, Halloween is all about eating candy. And there’s no variety of candy more beloved than chocolate. According to national surveys, the average American’s favorite Halloween candy is a chocolate treat like M&Ms, Snickers, or Reese’s Peanut Butter Cups. But this year, you may notice less chocolate in your family’s trick-or-treat stash. That’s because cocoa prices are at record highs after three years of poor crops. The price of cocoa has doubled since the start of 2024 and risen more than 90 percent since 2022. Candy makers are feeling the strain: in August, chocolate giant Hershey reported a 48 percent decrease in its operating profit from the previous year.

With cocoa prices soaring, candy makers are finding creative ways to use less chocolate in their Halloween treats. For example, several big brands are expanding their selection of gummy, fruity, or sour candies with new flavors and variety packs. Twizzlers Ghosts, Sour Patch Kids Apple Harvest, and Skittles Shriekers are all new on grocery store shelves this year. Other candy makers are replacing chocolate with layers of other fillings, such as wafers or nuts. Experts say the changes may become permanent as younger consumers appear to prefer non-chocolate candy more than previous generations. 

If you’re a chocolate lover, though, don’t let this post scare you: There will still be plenty of chocolate this Halloween. But high prices will likely lead to “shrinkflation,” a term used to describe the business practice of reducing a product’s size while continuing to sell it for the same price. The change is perhaps most visible in candy variety packs, where mini chocolate bars will be even more mini this year. “There is probably some shrinkflation in these bags,” said David Branch, sector manager at Wells Fargo’s Agri-Food Institute. “You get a two-pound bag of a mixture of all these different candies from a company. Well, that bag is probably going down to be less than two pounds now at the same price point.”

Questions:

1. What are some ways that candy companies are responding to rising chocolate prices? 
2. Do you think consumers notice when “shrinkflation” occurs? Why or why not?

Sources: Erika Tulfo, “Halloween Could Taste Different This Year Thanks To Soaring Cocoa Prices,” CNN, Oct. 20, 2024; Jaclyn Peiser, “Chocolate Is On Its Way Out. Why Halloween Is Aboug Gummy Candy Now.” The Washington Post, Oct. 17, 2024.