Chocolate inflation has Americans on track to spend a frightful $3.6 billion on Halloween candy

Candy (and gum) prices are up 7.5% compared to last September and Americans are expected to spend $3.6 billion on candy in 2023, according to the National Retail Federation. They’re seemingly buying more treats as well this year, as the figure is 16% higher than 2022’s totals.

Blame cocoa prices, in part, for the surge. The key ingredient in chocolate saw prices jump 61% this year due to rains delaying the harvest. That’s impacting manufacturers, such as Hershey and Mars. Also, retailers ultimately set the price for candy, so some are inflating it slightly to improve their own profit margins.

For trick or treaters, that might mean smaller hauls this year, as people are more stringent about the portions they hand out. (Or, arguably worse, more candy corn.) And fewer houses might be giving away full-sized candy bars.

People aren’t just spending more on candy in 2023. The surge in popularity of Halloween-themed lawn ornaments and inflatables since the pandemic will result in overall spending this year to $12.2 billion, a new record, topping last year’s $10.6 billion.

A chief beneficiary of that could be Home Depot. The home improvement chain has become a leader in the Halloween marketplace with its 12-foot skeleton and other decorations. This year’s new entries included a nine-foot-tall bat-like creature, with a wingspan of 12 feet and a 12-foot-tall ghost and witch (selling for $349 and $299, respectively). The store began selling those lawn decorations on July 13.

“More Americans than ever will be reaching into their wallets and spending a record amount of money to celebrate Halloween this year,” NRF President and CEO Matthew Shay said in a statement. “Consumers will be shopping early for festive décor and other related items and retailers are prepared with the inventory to help customers and their families take part in this popular and fun tradition.”