Halloween is just around the corner and consumers are getting ready to do their seasonal shopping; however, their budgets could be in for a surprise, as candy prices are estimated to have increased by up to 34 %.
According to PayPal estimates, candy for the Halloween season in the United States will be more expensive, at least by 30%, compared to the season 2021.
However, this price increase will not persuade consumers to skip one of the most important shopping seasons of the year, the second most important, according to retailers.
Prices are increasing due to inflation, but also because candy-producing companies continue facing problems in their supply chains, mainly in terms of packaging.
This was pointed out by the National Confectioners Association (NCA), which detailed that the most affected are the companies producing sweets and ch ocolates, which have begun to adjust their prices.
In fact, The Hershey Company, one of the most important manufacturers of chocolates and Halloween candy, reported early last summer that it would have to increase prices on KitKat, Reese’s and Twizzlers, given the shortage it expects this season.
high prices will not drive consumers away
Despite the announced and forthcoming rises in candy prices, the NCA and the National Retail Federation (NRF) believe that consumers will not walk away from the shelves and millions of dollars will be sold in candy this Halloween.
“Even with inflation, more people are celebrating, more people are focusing on the holiday experience,” calculated Katherine Cullen, senior director of Industry and Consumer Information at NRF, in a report for Fox Business.
Cullen added that until the end of September, the group of researchers with whom he works have not seen a reduction in consumption, ahead of the holiday season year-end.
For its part, the NRF estimates that this year will be spent about $3,100 million dollars worth of candy, which would exceed $3,000 millions that were spent on 2021.
This data, according to the NRF, will be the second largest expense to be carried out during the next Halloween season, only surpassed by $3,100 millions of dollars expected to be spent on costumes.
In total, the associations estimate that expenditure on Halloween will be $10,600 million dollars, a figure greater than $10,100 million dollars, in what they consider to be the second event or most important sales of the year.
For their part, retailers do not perceive that consumers will be less active in their purchases, but they will take care of their spending through the search for offers and discounts or with advance purchases, which allow them to distribute their debts.
According to the NRF, 47% of Americans who are going to participate in Halloween started buying their candy in September, while the 34% of those surveyed by this association say they plan to distribute sweets.
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