Halloween candy sales are off to a slow start amid high chocolate prices and affordability concerns

Halloween candy sales are lagging this year as U.S. consumers face high living costs and pricey chocolate. Sales dipped 6.7% in October compared to the same period last year, according to NielsenIQ. Nielsen also reported an 11.7% decline in candy sales mid-September, undoing the preseason growth seen in previous years. Chris Costagli, a NielsenIQ vice president, said gas prices are exacerbating affordability concerns, dampening demand for Halloween treats.

With gas at $4.29 per gallon, Americans are struggling to afford other essentials, leading them to cut back on purchases like Halloween candy. Small candy bags are the only ones seeing sales growth, while large and extra-large bags are declining the most. U.S. candy prices have been outpacing inflation, with candy prices up 44% over five years.

The main reason for the price hike is record-high cocoa prices, which reached a record high of $10,710 per metric ton in January due to poor weather in West Africa and speculative trading. Cocoa prices have since fallen but are climbing again due to the Iran war disrupting fertilizer supplies and the El Niño weather pattern expected to hurt production.

Despite lower prices for non-chocolate Halloween candies, sales are still down. U.S. consumers are being more intentional with their purchases, making smaller trips to the store and buying products right before use, which may explain the muted demand for Halloween candy.