Chocolate prices are at an all-time high, forcing many to cut back on their Easter candy spending.
MOLINE, Ill. — For all you chocolate lovers, you might have noticed the cost of your favorite chocolatey treats have been getting much more expensive. With chocolate prices at an all-time high, many consumers have been forced to cut back on their Easter spending. The National Retail Federation expects consumer spending on chocolate and candy this Easter holiday to have declined by 6.3%.
News 8's David Bohlman spoke with Mark Grywacheski from the Quad Cities Investment Group about why candy prices continue to rise.
Credit: Quad Cities Investment Group
Bohlman: Why are chocolates and candies suddenly becoming more expensive?
Grywacheski: It all ties back to the tiny cocoa bean, often called “cocoa." And the main derivative of cocoa is chocolate.
Like many global commodities (like corn, soybeans, gold and silver), cocoa is bought and sold on the global marketplace. On Tuesday, the price of cocoa reached an all-time high of $10,067 per metric ton. Just 12 months ago, its price was around $2,800 per metric ton. Year-to-date, cocoa prices have risen 138%.
The West African region produces over 80% of the world’s cocoa supply. But that region has been hit especially hard by multiple adverse weather and crop diseases. This has caused the worst cocoa supply shortage in over 60 years. This has sent cocoa prices and chocolate prices, soaring to record highs. And companies often pass on their higher operating/manufacturing costs to the consumers with higher retail prices.
Bohlman: How much longer are these high chocolate costs expected to last?
Grywacheski: Unfortunately, many experts expect this disruption to the global cocoa supply in West Africa to last, and likely worsen, at least for the rest of this year. So, where does that leave the consumer?
Over the past three years, food prices have already risen by a cumulative 21%. So, chocolate/candy manufacturers realize they have to be very sensitive in just how much they can raise prices. If they raise prices too much, they risk a collapse in consumer spending. So, they’ve tried to get creative in how they manage this crisis.
- They’re promoting candies with less chocolate content.
- They’ve reduced the amount of chocolate in many candies. For example, if a candy bar consists of chocolate, wafers and caramel, the manufacturer may use less of the higher-cost chocolate and more of the lower-cost wafers and caramel.
- And like many other industries, they’re using what’s called shrinkflation — which is reducing the product size while still charging the same price.
But that said, chocolate/candy prices are still expected to creep even higher throughout the year.
Bohlman: For those of us who still need to satisfy our occasional sweet tooth, what do experts say to help minimize the impact of these rising chocolate prices?
Grywacheski: Experts say it’s really about the chocolate content. The more chocolate in candy, the more likely the cost will increase. So, if you really need to satisfy that sweet tooth, non-chocolate candies are your best option.
But if you’re really craving chocolate, white or milk chocolate will likely be your cheapest option. The price increase for dark chocolate will be much steeper as dark chocolate has a higher concentration of cocoa. Finally, switching to a much cheaper brand of chocolate is also one of the best ways to keep the cost down.
Quad Cities Investment Group is a Registered Investment Adviser. This material is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Quad Cities Investment Group and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Quad Cities Investment Group unless a client service agreement is in place.
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FAQs
The West African region produces over 80% of the world's cocoa supply. But that region has been hit especially hard by multiple adverse weather and crop diseases. This has caused the worst cocoa supply shortage in over 60 years. This has sent cocoa prices and chocolate prices, soaring to record highs.
Why is Easter candy so expensive this year? ›
The Easter Bunny — and consumers — are feeling the pinch of inflation this year with skyrocketing cocoa prices reaching new heights. Why it matters: Cocoa prices surpassed $10,000 a ton for the first time this week.
Why is Halloween candy so expensive this year? ›
“The cost of ingredients is up by a lot, inflation is up and transportation costs are higher than they were two years ago. The rising prices of raw materials play a part, but you can't pinpoint the rise in candy costs to one factor,” he said.
Why is Valentine's candy so expensive? ›
“Valentine's Day is a one-day opportunity. So sellers almost need a higher markup on the candy items to justify stocking the specially-packaged products,” Talbott said. At the same time, plenty of shoppers will likely not even be thinking about the price as Feb. 14 rolls around.
Is candy expensive in America? ›
Why is candy so expensive? Beyond overall inflation, which rose 3.7% year over year since September 2023, there are a few more reasons why candy is so expensive right now. The cost of raw sugar reached an 11-year high in April, per CNBC, due to the effects of extreme weather on the crop, as well as rising demand.
What is the number 1 candy for Easter? ›
The Reese's treat extended its longtime reign at the top of the Easter candy food chain with 51% of the vote in RetailMeNot's annual survey. The eggs beat out chocolate bunnies, Cadbury eggs, jellybeans and Peeps to secure the top spot.
Why is candy getting more expensive? ›
The West African region produces over 80% of the world's cocoa supply. But that region has been hit especially hard by multiple adverse weather and crop diseases. This has caused the worst cocoa supply shortage in over 60 years. This has sent cocoa prices and chocolate prices, soaring to record highs.
What is the number 1 candy on Halloween? ›
1: Reese's Peanut Butter Cups. This perennial favorite easily finished first in the candy derby, earning the title of most popular Halloween candy in 18 states, including densely populated ones like California, Pennsylvania, and Massachusetts.
What happens to unsold Halloween candy? ›
Donate it.
Halloween candy donation opportunities have exploded in recent years. Many dentists or local businesses do “buy-back” programs, where they pay per pound then donate the candy, often to military troops or veteran groups. Here's a directory where you can search for buy-back programs in your area.
What happens to the price of Halloween candy after Halloween is over? ›
The price and quantity sold after Halloween both fall significantly. Before Halloween, the demand was significant as people stocked up to get ready for the "trick or treaters". The day after, demand shifts to a much lower demand, and the stores lower the price significantly to sell out their inventory.
I'm not talking about 24k gold leaf on the outside of the bar, this is a completely covered golden chocolate bar. With a price tag of $1,628 per bar the Wispa Gold holds the no. 1 spot as the most expensive candy bar in the world.
What is the most expensive sugar candy? ›
A 1.5-ounce bar of To'ak is the most expensive sugary bite you will ever take. And it contains only two ingredients: cacao and cane sugar. The thing is that the cacao in this candy comes from 100-year-old Arriba cacao trees, widely thought to be the last of the species.
What is the number one Valentine candy? ›
First, What's the Most Popular Valentine's Day Candy? According to Candystore.com's annual report from 2023, conversation hearts made a stunning comeback, being the top Valentine's Day candy choice for 17 U.S. states.
What is America's #1 candy? ›
Snickers is the top-selling candy bar in the United States and is produced by Mars, Inc. This classic chocolate bar is made with nougat, caramel, and peanuts, and it has been a favourite among Americans since its introduction in 1930. M&M's are small, candy-coated chocolates that are produced by Mars, Inc.
What is America's most bought candy? ›
Reese's Peanut Butter Cups are the No. 1 selling candy brand in the United States, consisting of white fudge, milk, or dark chocolate cups filled with peanut butter. They were invented by H.B. Reese after he founded the H. B. Reese Candy Company in 1923.
Which US state eats the most candy? ›
28 states showed no interest in Dubble Bubble Gum and at least one other type of candy. Charms Blow Pops and Jolly Ranchers were tied for the type of candy of greatest interest to the most states (seven). With the highest combined search value (1,508), Utah is the most candy-loving state.
Why is Easter chocolate so expensive? ›
Increasing costs stem from a cocoa shortage in west Africa, in particular Ghana and Ivory Coast, where more than half of the world's cocoa beans are harvested.
Why is Hershey's increasing the price of their candy? ›
Hershey raised its candy prices last year to offset rising costs and last month implemented what it called a “small” price increase for grocery store items such as chocolate baking chips and syrup. But there may be a limit to how high prices can go.
Why are Easter eggs so expensive this year? ›
Why are Easter eggs shrinking or costing more? The main reason is that, on average, chocolate costs 12.6% more than this time last year. One reason chocolate prices are higher is weather. A key ingredient in the making of chocolate is cocoa, and West Africa produces around 70% of the world's cocoa.
What is the least favorite Easter candy? ›
The Candy Store asked more than 9,000 people in the U.S. what Easter candy they did or didn't like. The survey says the least popular Easter candy is Cadbury Creme Eggs with Bunny Corn and Peeps right behind in second and third place.
