Halloween spending and candy prices face inflationary pressures

Rising ingredient costs for cocoa, sugar, and corn syrup are driving Halloween candy prices up by more than 15% in 2026, a rate significantly higher than overall inflation. Supply shocks, including extreme weather in West Africa affecting cacao and droughts in Mexico impacting sugar supplies, have contributed to these increases. Consequently, some consumers are planning to skip candy purchases or opt for salty snacks.

In the United States, the National Retail Federation expects total Halloween spending to reach approximately $13.5 billion, with candy accounting for $4.1 billion. While retailers like Kroger and Stop & Shop are preparing for high demand through seasonal exclusives and large inventory volumes, shoppers are increasingly budget-conscious. Some consumers are turning to secondhand options for costumes or utilizing 'buy now, pay later' services to manage holiday costs.

Economic data also indicates a shift in holiday spending patterns. While average household spending for the broader holiday season is expected to rise, there is a growing trend of 'value seekers' who prioritize promotions and private labels. Additionally, Gen Z and Millennials are projected to account for 50% of total holiday spending for the first time.