Chocolate prices are at an all-time high, forcing many to cut back on their Easter candy spending.
MOLINE, Ill. — For all you chocolate lovers, you might have noticed the cost of your favorite chocolatey treats have been getting much more expensive. With chocolate prices at an all-time high, many consumers have been forced to cut back on their Easter spending. The National Retail Federation expects consumer spending on chocolate and candy this Easter holiday to have declined by 6.3%.
News 8's David Bohlman spoke with Mark Grywacheski from the Quad Cities Investment Group about why candy prices continue to rise.
Credit: Quad Cities Investment Group
Bohlman: Why are chocolates and candies suddenly becoming more expensive?
Grywacheski: It all ties back to the tiny cocoa bean, often called “cocoa." And the main derivative of cocoa is chocolate.
Like many global commodities (like corn, soybeans, gold and silver), cocoa is bought and sold on the global marketplace. On Tuesday, the price of cocoa reached an all-time high of $10,067 per metric ton. Just 12 months ago, its price was around $2,800 per metric ton. Year-to-date, cocoa prices have risen 138%.
The West African region produces over 80% of the world’s cocoa supply. But that region has been hit especially hard by multiple adverse weather and crop diseases. This has caused the worst cocoa supply shortage in over 60 years. This has sent cocoa prices and chocolate prices, soaring to record highs. And companies often pass on their higher operating/manufacturing costs to the consumers with higher retail prices.
Bohlman: How much longer are these high chocolate costs expected to last?
Grywacheski: Unfortunately, many experts expect this disruption to the global cocoa supply in West Africa to last, and likely worsen, at least for the rest of this year. So, where does that leave the consumer?
Over the past three years, food prices have already risen by a cumulative 21%. So, chocolate/candy manufacturers realize they have to be very sensitive in just how much they can raise prices. If they raise prices too much, they risk a collapse in consumer spending. So, they’ve tried to get creative in how they manage this crisis.
- They’re promoting candies with less chocolate content.
- They’ve reduced the amount of chocolate in many candies. For example, if a candy bar consists of chocolate, wafers and caramel, the manufacturer may use less of the higher-cost chocolate and more of the lower-cost wafers and caramel.
- And like many other industries, they’re using what’s called shrinkflation — which is reducing the product size while still charging the same price.
But that said, chocolate/candy prices are still expected to creep even higher throughout the year.
Bohlman: For those of us who still need to satisfy our occasional sweet tooth, what do experts say to help minimize the impact of these rising chocolate prices?
Grywacheski: Experts say it’s really about the chocolate content. The more chocolate in candy, the more likely the cost will increase. So, if you really need to satisfy that sweet tooth, non-chocolate candies are your best option.
But if you’re really craving chocolate, white or milk chocolate will likely be your cheapest option. The price increase for dark chocolate will be much steeper as dark chocolate has a higher concentration of cocoa. Finally, switching to a much cheaper brand of chocolate is also one of the best ways to keep the cost down.
Quad Cities Investment Group is a Registered Investment Adviser. This material is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Quad Cities Investment Group and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Quad Cities Investment Group unless a client service agreement is in place.
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FAQs
Year-to-date, cocoa prices have risen 138%. The West African region produces over 80% of the world's cocoa supply. But that region has been hit especially hard by multiple adverse weather and crop diseases. This has caused the worst cocoa supply shortage in over 60 years.
Why is Halloween candy more expensive this year? ›
Sugar production was trimmed by 3% this year, causing an increase in price for products made with sugar, like candy. Plus, any companies following the U.S. agricultures policy of having 85% of their sugar come from domestic sources also have to deal with a strained supply within the nation.
How do you explain why the cost of candy increases right before Halloween? ›
“The cost of ingredients is up by a lot, inflation is up and transportation costs are higher than they were two years ago.
When did candy bars cost 5 cents? ›
But if you could time-travel with your dollar back to 1950, you could buy 20 candy bars! In other words, each candy bar would only cost you around 5 cents. It might sound pretty great to get a candy bar for 5 cents, but remember that everything else was adjusted to match. So jobs paid a lot less back then.
Why is sugar so expensive now? ›
The global cost of sugar has risen to its highest level since 2011, following concerns of underproduction rates from countries such as Thailand, which is facing a severe drought. Similarly, India saw sugar prices jump by more than 3% in two weeks, in September 2023, reaching their highest level in six years.
Why is chocolate more expensive now? ›
Climate change is driving up cocoa prices to historic levels Cocoa prices are on the rise because of changing climate patterns and extreme weather.
What is the #1 Halloween candy sold? ›
Using sales data for the time period before Halloween, the distributor determined which candy was the most popular with the winner being: Reese's Peanut Butter Cups. Here are the top 10 most popular candies in America, according to CandyStore.com: Reese's Peanut Butter Cups.
Is candy really cheaper after Halloween? ›
Directly after Halloween, bulk candy for the holiday often gets heavily marked down. So, if you've still got a sweet tooth after Halloween night, take advantage of those sales to stock up on candy for the rest of the spooky season.
Why is Halloween so expensive? ›
Inflation is making your favorite Halloween staples more expensive this year, according to an analysis of data from the National Retail Federation by Investopedia. The priciest items on the list were costumes, with the average shopper spending $36.84 on their Halloween outfit—9.2% more than in 2022.
What has caused an increase in the price of Halloween candy? ›
The particularly higher price tags for candy have been driven by a spike in the costs of their key ingredients. Thanks to the hot and dry weather, Mexico, where America imports much of its sugar from, has seen its production fall by more than 15% this year, according to the Department of Agriculture.
"Every year, Americans throw away about $400 million worth of uneaten sweets from trick-or-treating. That's a lot of food waste. But the fix is simple: stop giving away candies that kids don't like (candy corn, anyone?) and give away treats that they do enjoy.
Why does Halloween bring in so much money? ›
Second, Halloween is typically associated with purchasing many consumer goods, including costumes, candy, and decorations. Finally, the nature of Halloween means that families celebrating will likely have to make many new purchases each year—of larger costumes as children grow bigger, of new candy, and so on.
What is the oldest candy bar still made? ›
Fry & Sons and currently manufactured by Cadbury. Launched in 1866—nineteen years after Fry's created the first moulded, solid chocolate eating bar (in 1847)— Fry's Chocolate Cream is the first mass-produced chocolate bar and is the world's oldest chocolate bar brand.
How much did a Hershey bar cost in 1980? ›
A Hershey's Milk Chocolate Bar, for example, weighed only 1.05 ounces in 1980 and cost 25 cents; today it weighs nearly 1.5 ounces and costs 30 cents, a price decrease of 60 cents a pound.
How much was a Hershey bar in 1965? ›
But before you roll your eyes, remember that it's true. Candy bars did cost only 10 cents in 1965. And a new Ford Mustang cost only $3,300.
Why is there a shortage of candy? ›
Thanks to sugar shortages, import restrictions and climate change-related severe weather, stocking your bowls with Halloween candy isn't going to be easy this year.
What is the number 1 selling candy in the US? ›
Reese's Peanut Butter Cups are the No. 1 selling candy brand in the United States, consisting of white fudge, milk, or dark chocolate cups filled with peanut butter.
Why is Hershey's increasing the price of their candy? ›
Hershey raised its candy prices last year to offset rising costs and last month implemented what it called a “small” price increase for grocery store items such as chocolate baking chips and syrup. But there may be a limit to how high prices can go.
Why are candy bar prices so high? ›
Dry weather has pushed up the cost of crucial candy ingredients, driving the prices of candy bars and packs of gum higher.
