NOT SO SWEET: Trick-or-treaters to see smaller candy bars and change to treats due to soaring cocoa prices ahead of Halloween

According to The Sun, Halloween candy hauls may look different this year, as industry leaders warn that skyrocketing cocoa costs are prompting significant changes. Major chocolate manufacturers like Hershey and Mars are expected to reduce the variety in their packs and shrink the size of candy bars as cocoa prices have doubled.

Challenges in Cocoa Production

The growing of cocoa is a highly sensitive process, and farmers have faced considerable challenges due to adverse weather conditions this year. Cocoa primarily grows in West Africa, particularly in countries like Ghana and the Ivory Coast, making it difficult to source even under the best circumstances.

For the past three years, these regions have been adversely affected by the El Niño climate pattern, resulting in drier conditions. Consequently, supplies are dwindling, leading candy makers to compete for what’s left of this year’s cocoa crop.

“Cocoa is not like a normal agricultural crop where you can grow it everywhere, like other commodities,” explained David Branch, sector manager at Wells Fargo’s Agri-Food Institute, in an interview with CNN. “It takes a very specific site and temperature range to grow.”

Global Production Declines

According to the International Cocoa Organization, global cocoa production is projected to fall by 14.2% this season. Chocolate companies began feeling the pressure earlier this year during Valentine’s Day and Easter, when cocoa prices were only half of what they are today.

Michele Buck, president of Hershey, revealed in an earnings call that the company’s operating profit plummeted by 48.7% compared to the previous year.

Halloween Pricing and Future Outlook

Despite the fluctuations in cocoa prices, Hershey has indicated that Halloween prices should remain stable, as this year’s crops are looking good. “So far, we’re having really decent weather for this year’s crop,” Branch noted. “It will start helping to boost supply, so that’s why we expect prices to come down.”

Creative Solutions for Consumers

Consumers have already noticed an increase in chocolate prices due to the declining cocoa supply, leading some to devise creative solutions to save money this Halloween. One parent mentioned to Canadian outlet CHCH that he plans to hand out chips instead of candy to cut costs.

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To keep prices manageable, companies are also focusing on producing more candy without chocolate, according to industry experts. However, chocolate variety packs are likely to be smaller until cocoa production stabilizes in September 2025.

Branch pointed out that “shrinkflation,” the practice of reducing portion sizes while maintaining the same price, is affecting chocolate bags. “You get a two-pound bag of a mixture of all these different candies from a company. Well, that bag is probably going down to be less than two pounds now at the same price point.”

Some companies may even alter their recipes, removing chocolate from certain candies and replacing it with nuts or wafers.

Conclusion

Despite these changes, chocolate remains the most popular candy, and there will be no shortage of it on the shelves this Halloween. As consumers adapt to the rising costs, the candy landscape may shift, but the allure of chocolate will continue to prevail.