U.S. candy prices surged 13% in October compared to that of last year, marking a second-consecutive year of double-digit inflation in the industry, the Associated Press (AP) reported Saturday.
The increase is more than double the 6% rise in overall grocery prices and follows a 14% hike in candy prices last October, according to the AP. (RELATED: Economy Shows Huge Growth In Third Quarter As Fed Struggles To Rein In Inflation)
Weather challenges, particularly in West Africa, have driven cocoa prices to 44-year highs, affecting global candy prices, per the outlet. Unfavorable weather conditions, including heavy rains and subsequent droughts, have severely impacted cocoa production, according to the outlet. Additionally, global sugar prices hit 12-year highs due to disrupted supplies from major producers like India and Thailand, per the AP.
Less boo for your buck: For the second Halloween in a row, US candy inflation hits double digits https://t.co/yLrA1u3xxV
— The Associated Press (@AP) October 28, 2023
Increased costs in labor, packaging and other ingredients also contribute to the ballooning candy prices, as reflected in the pricing strategies of companies like Hershey Co. and discount grocery chains. For example, Aldi’s price for a 250-piece variety pack of Mars Inc. chocolate bars is currently advertised at $24.98, up from $19.54 two years ago, the outlet noted.
“There may be no price relief in sight, at least through the first half of 2024,” Dan Sadler, principal of client insights for Circana, a market research firm, told the AP.