This year, trick-or-treaters may find an abundance of fruity delights rather than the classic chocolate candy in their Halloween haul. As younger consumers show a growing preference for non-chocolate options, candy makers are responding to this trend by offering a wider variety of sweets, including gummies, freeze-dried treats, and other colorful confections. This shift has been evident for several years, with many children gravitating toward these vibrant and flavorful alternatives.
According to Dan Sadler, a principal for client insights at the market research firm Circana, chocolate candy comprised just 44% of the total Halloween candy sold in the U.S. during the 12 weeks ending October 5 this year. This marks a significant decline from last year, when chocolate accounted for 52% of Halloween candy sales. The rising costs of cocoa, which have more than quadrupled due to poor harvests in West Africa, are contributing to this trend. With 70% of the world's cocoa production coming from this region, the impact of rising prices cannot be overlooked.
The price differential between chocolate and non-chocolate candies is also a significant factor in consumer choices. As of early October, chocolate candy in the U.S. averaged $8.02 per pound, whereas non-chocolate options were much more affordable at an average of $5.77 per pound. This price gap makes non-chocolate candies more appealing, especially for budget-conscious consumers looking to stock up for Halloween.
The financial outlook for Halloween candy is bright, with Americans projected to spend approximately $7.4 billion on these seasonal treats in 2024, as reported by the National Confectioners Association. This figure represents 18% of total candy sales, underscoring the significance of Halloween within the confectionery market.
In terms of production, Mars Inc. is a major player, manufacturing an impressive 30 million M&M’s daily at their Topeka, Kansas facility, which is dedicated to Halloween candy. The company has also reached record cocoa prices, with a metric ton costing $10,710 in January, marking an all-time high. Although cocoa prices have since fallen, the effects of this decline will take months to reflect in consumer pricing.
To give you a sense of scale, if all the Snickers bars produced annually in Topeka were lined up, they could stretch the distance of 1,254 miles, reaching from Topeka to New York seven times. According to Hershey, 61% of U.S. consumers purchased candy for trick-or-treaters last year, with 45% admitting to buying Halloween candy for themselves. Hershey dominated the market with a 40.8% share, thanks to popular items like Reese’s, Kit Kat, and Almond Joy.
As Halloween approaches, candy purchasing habits reveal interesting trends. On average, Americans begin buying Halloween candy about 3.6 weeks before the holiday, with Generation Z starting even earlier at around 4.5 weeks in advance. Planning for the Halloween season is a lengthy process for candy manufacturers, with companies like Mars taking up to two years to prepare for this festive occasion.
In conclusion, the Halloween candy landscape is evolving, with a notable shift towards non-chocolate options. As trends continue to change, consumers can expect a colorful array of candies to choose from this Halloween season.
