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Sweet Shock: Candy Sales Fall Amidst Rising Prices
29 Oct
Summary
- Candy sales declined nearly 7% in October and 12% in September.
- Candy prices have increased by 15% on average compared to last year.
- Consumer spending on Halloween is projected to reach $13.5 billion.
Candy sales experienced a notable decline, with a nearly 7% drop in October following a 12% decrease in September, according to NielsenIQ data up to October 17. This downturn is largely attributed to rising prices, which have increased by an average of 15% over the past year, impacting consumer budgets.
Despite these challenges, the National Retail Federation forecasts a robust Halloween season with consumer spending expected to total $13.5 billion. Hershey's CEO, Kirk Tanner, expressed optimism, highlighting that the peak sales period is approaching and noting strong performance in Reese's selections, up 13% season-to-date.
Consumers are adapting to higher prices by comparison shopping (nearly one-third) and utilizing coupons or sales (26%). Hershey's is also seeing significant growth in its North America salty snack segment, up 24% to $1.1 billion, indicating a consumer shift towards healthier alternatives alongside traditional candy.
While confectionery sales in North America saw a more modest 4.6% growth year-to-date, with volume down 11%, the overall Halloween spirit is expected to prevail. Consumers prioritize the tradition, balancing affordability with their spending plans, ensuring treats will be available for trick-or-treaters.
