Key facts
- US consumers are spending less on Halloween treats this year.
- Milk chocolate sales led the decline, with white chocolate sales flat and dark chocolate sales marginally higher.
- Small-pack candy sales are up 24% in dollar terms, while larger sizes are declining.
- Industry experts cite growing use of GLP-1 weight-loss drugs and health trends as drivers of changing consumer choices.
US chocolate makers Hershey and Mondelez are bracing for a potentially disappointing Halloween sales season, with cost-of-living pressures and a growing consumer preference for healthier, low-sugar options impacting traditional candy purchases. Data from market researcher NIQ indicates a $33.1 million drop in Halloween chocolate sales in the nine weeks leading up to October 17, the most significant decline in at least three years, primarily driven by milk chocolate.
Industry experts note that consumers are increasingly seeking alternatives to traditional candy, such as snacks with no/low/less-sugar claims, yogurt-coated snacks, and popcorn. This shift is partly attributed to health trends and the growing use of weight-loss drugs. Small-pack candy sales have seen a 24% increase in dollar terms, contrasting with declines in larger sizes.
While soaring cocoa prices had previously forced confectionery makers to raise prices, the commodity has since fallen significantly. Mondelez International, for instance, is beginning to see the benefit of lower cocoa costs, with its Chief Operating Officer indicating a selective approach to pricing to protect market share. The company also announced its intention to acquire Undercover Snacks, known for its chocolate-coated quinoa crisps.