Halloween candy sales drop as cost of living crisis bites American households

American households struggling with elevated living expenses and steep chocolate prices have driven a sluggish start to Halloween candy sales this year.Figures from market research firm NielsenIQ reveal that candy purchases fell 6.7% in the month ending Oct. 17 compared to the same period last year. An 11.7% drop in mid-September wiped out early-season sales gains recorded over the previous two years.Chris Costagli, a vice president and food thought leader at NielsenIQ, said surging fuel costs have worsened concerns over affordability, curbing demand for treats. As of Friday, the national average for regular gasoline stood at $4.29 a gallon, up nearly 40% from last year."I think what you’re seeing now is a consumer that’s spending so much additional money on fuel and housing and clothing and food," Costagli said. "Some of the decisions they're making about Halloween candy, it’s not necessarily because, 'I notice it's more expensive than last year,' it's, ‘I can’t afford it this year because I've paid so much more for so many other things. I just don’t have the financial means to buy it this year.’"Costagli noted that small bags were the only package size seeing sales growth through mid-October, while large and extra-large sizes experienced the sharpest declines.U.S. candy prices have outpaced general inflation for several years. Government data shows candy and gum prices jumped 44% over a five-year period through September, while overall grocery costs rose 22.5% over the same timeframe.Halloween Candy Sales (Copyright 2026 The Associated Press. All rights reserved)Discount grocer Aldi advertised a 135-piece variety pack of Mars Inc. chocolates—including Milky Way, Trix and Snickers—for $19.87 this week. That is nearly the same price consumers paid for a 250-piece pack five years ago.High cocoa prices are the primary driver. Global cocoa costs hit a record $10,710 per metric ton in January 2025 due to harsh weather in West Africa, which produces 70% of world supply, and speculative futures trading, according to the U.S. Bureau of Labor Statistics.Although cocoa dropped to $3,241 per metric ton in March, prices rebounded in the spring after the Iran war disrupted fertilizer shipments to Africa. The El Niño weather pattern is also expected to dampen output, bringing heat and dry conditions through February.Costagli noted that demand remains weak even where prices have dropped. Non-chocolate treats like gummies and lollipops averaged $6.08 per pound in the nine weeks ending Oct. 17, down roughly 3% from last year, without driving a surge in sales.Sally Lyons Wyatt, a global executive vice president and food industry adviser at Circana, said consumers are coping with high grocery bills by making smaller, more frequent shopping trips right before using items. Halloween Candy Sales (Copyright 2026 The Associated Press. All rights reserved)She questioned whether buyers are simply holding off until closer to Halloween."People are very intentional and thoughtful about what they want to consume, not just for holidays, but in general," she said. "I do believe we will still see softness overall with candy, but I don’t think Halloween is doomed."The National Confectioners Association, representing producers such as Mars, Smarties Candy Co. and Ferrara Candy Co., said it remains optimistic."We are just now entering the peak period for Halloween and consumer enthusiasm remains incredibly strong," the group said Friday in a statement.