Considering there isn’t the need to buy expensive gifts, flights, or a fancy dinner, Halloween is supposed to be one of the cheaper holidays. But, with prices rising across the board, it seems everything is getting pricey. The biggest Halloween expense for most families tends to be costumes. On cue, the cost of candy is getting scary, too.
With Halloween just days away, some consumers are voicing complaints about the candy price hikes. In response, a few major candy makers are providing an explanation behind their pricing decisions.
According to U.S. candy companies, the main reason behind the increase in candy prices is the skyrocketing price of raw materials including sugar, milk, and flour. In many cases, the cost increases for these are even higher than the average rate of inflation.
This inevitably leads to a higher cost for the end product. With that said, some companies are trying their best to stay affordable.
Notably, Hershey Co. (HSY) — the maker of Kit Kat, Reese’s, and, of course, Hershey’s — said that it hasn’t raised prices on some of its candy since June. Mars Wrigley, which makes M&Ms, Starbursts, and Skittles, said it absorbed extra candy costs wherever it could.
But, for consumers, does this mean that candy prices are going to come back down?
What To Expect?
One thing to note is that Halloween candy prices are rising unevenly. For example, Starbursts and Skittles are up as much as 35% and 42%, while Crunch and Butterfinger prices rose only 6% and 7%, respectively. For consumers, simply swapping the type of candy you leave for trick-or-treaters could be an effective way to join the Halloween fun without breaking the bank.
Consumers could also consider buying candy in bulk from major discount grocers like Costco (COST) or Sam’s Club (WMT). This tends to be a cheaper option than buying candy from a drugstore. Finally, shoppers can always just buy a little less candy to evade the price increase — and that next-day stomach ache.
With inflation this high, Halloween is looking scarier than ever, but that doesn’t mean the party has to end.
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