Halloween candy prices expected to jump 34% but its not deterring shoppers
Consumers are expected to spent $3.1B on candy alone
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Candy buyers will see a less than sweet surprise this Halloween as confectionary prices surge over 30%. Even so, industry experts say it's not deterring consumers.
According to PayPal data, the cost for Halloween sweets is projected to rise 34% compared to last year.
The National Confectioners Association (NCA) told FOX Business that both "chocolate and candy companies faced the same supply chain challenges that every industry has faced, especially around packaging."
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Earlier this summer, The Hershey Company, the maker of KitKat, Reese's and Twizzlers, told analysts during an earnings call that it had to increase prices to offset the higher raw material and logistics costs.
Residents give out candy as kids trick-or-treat in the Kensington neighborhood in Brooklyn on October 31, 2021 in New York City. (Rick Madonik/Toronto Star via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HSY | THE HERSHEY CO. | 170.90 | -7.87 | -4.40% |
Still, the National Retail Federation (NRF), the nation's largest trade group, and the NCA are projecting a spike in participation for the upcoming holiday.
"Even with inflation … more people are celebrating, more people are focusing on the holiday experience," Katherine Cullen, NRF senior director of industry and consumer insights, told FOX Business, adding their researchers haven't seen a drop-off in spending.
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The NRF estimates consumers will collectively dole out $3.1 billion in candy alone, outpacing last year's spending of about $3 billion. The total is second behind costume spending, at $3.6 billion.
Two children sort through Mars Inc. and Hershey Co. brand Halloween candy. (Daniel Acker/Bloomberg via Getty Images / Getty Images)
Halloween spending overall is expected to reach a record $10.6 billion, exceeding last year’s record of $10.1 billion. The NRF says Halloween is the second biggest retail event of the year.
PayPal Vice President of Shopping Greg Lisiewski told FOX Business that although families won't be dishing out less candy necessarily, they will be "more diligent about finding deals and discounts." The NRF says 67% of those surveyed plan to hand out candy.
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Shoppers are also starting their Halloween shopping even earlier to help lessen the sting ahead of the big day.
"The longer shopping season allows shoppers to spread the cost out and better integrate the higher price into their budget." Lisiewski said, adding candy has been on shelves since around Labor Day.
According to NRF data, nearly half, 47%, of all Halloween participants already started shopping in September or earlier.