Halloween candy aisles see shift amid sky-high cocoa prices

Published On Oct 30, 2024, 6:00 AM

Due to a significant increase in cocoa prices, which are up 88% from the previous year, Halloween candy offerings are shifting. Consumers will see fewer chocolate options and more non-chocolate candies like gummies and licorice. The increased cocoa costs stem from poor harvests in West Africa, which produce a majority of the world's cocoa, alongside rising sugar prices. Despite the price increases, spending on Halloween candy is expected to rise by 3.5% this year to reach $4.1 billion.

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Stock Forecasts

HSYView HSY chart on TradingView

Negative

Investors may find an opportunity in non-chocolate confectionery companies as demand shifts away from traditional chocolate products due to rising prices. Companies producing gummies or licorice might see increased sales. On the other hand, chocolate producers like Hershey and Mondelez could face pressure from higher input costs and shifting consumer preferences.

MDLZView MDLZ chart on TradingView

Positive

Investors may want to look into the performance of Mondelez (MDLZ), which is featuring non-chocolate items prominently in their product lineup. As consumer preferences shift, Mondelez's strategy could lead to resilient sales even in a challenging chocolate market.

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