With Halloween approaching, American households are preparing to shell out billions of dollars for treats, absorbing steep price increases on confectionery items even as broader cost-of-living concerns squeeze family budgets.
Prices for candy and chewing gum rose 8.1 percent in August from a year earlier, according to the Bureau of Labor Statistics. That increase is more than double the 3.4 percent rise in overall consumer prices during the same period, which has been driven higher largely by escalating energy expenses. With wage growth lagging at 3 percent, many shoppers are feeling the pinch on everyday household finances.
Yet consumer demand for holiday treats remains robust. Shoppers across the United States are projected to spend $4.1 billion on Halloween sweets this autumn, according to survey findings released by the National Retail Federation. The trade group found that 96 percent of people participating in the holiday plan to purchase candy, making it the season’s most favored purchase. Overall Halloween spending is anticipated to reach $13.5 billion, up from $13.1 billion in 2025, with shoppers spending an average of $115.14 per person, Fox Business reported.
Supply pressures behind chocolate inflation
The cost increases are hitting the chocolate aisle particularly hard. Data compiled by professional services firm PwC showed that chocolate candy packaged for Halloween jumped 15.5 percent over the past year to an average of $5.67 per bag, NBC News reported. Nonchocolate candy rose at a much milder pace of 1.8 percent, averaging $3.31 per package. Market research firm NIQ tracked a 9.4 percent increase in overall chocolate prices, though it calculated a smaller 1.7 percent uptick specifically for Halloween-branded chocolate.
Industry analysts point to agricultural and policy factors behind the surge. Severe weather across major cocoa-exporting nations including Ghana and Côte d’Ivoire caused global cocoa commodity prices to quadruple between January 2023 and January 2025, according to data from the International Monetary Fund. While cocoa prices have since fallen by roughly half, those savings have not trickled down to retail displays.
Chocolate makers typically purchase raw cocoa months or years ahead of production, PwC consumer markets leader Ali Furman told NBC News, explaining that consumers are paying for that earlier market spike today. Additional pressure arrived in July when the U.S. enacted tariffs ranging between 10 percent and 12.5 percent on 60 trade partners, adding imported input costs for manufacturers, NIQ insights leader Chris Costagli told NBC News.
Adapting budgets for seasonal traditions
To cope with higher price tags, consumers are adopting new shopping strategies. Nearly half of consumers began buying items in September or earlier, and 23 percent of those early shoppers acted ahead of schedule to spread out expenses, according to the NRF survey. Discount retailers were the primary destination for 39 percent of respondents.
Financial strain is also pushing some buyers toward credit options. A survey by Deloitte found that one in five Halloween shoppers plans to rely on financing or buy now, pay later programs to fund holiday expenditures, Retail Dive reported. While about seven in 10 shoppers reported they could comfortably handle their Halloween spending, 42 percent expressed worries that the broader economy will deteriorate over the coming year.
Regional spending habits also vary widely. An analysis by Solitaired reported by Mental Floss found that the average American spends $49.19 on candy to distribute to trick-or-treaters. Residents in Maryland spent the highest average at $67.95, followed closely by West Virginia at $61.32 and Pennsylvania at $59.35.
Economists and retailers are closely watching whether the willingness to indulge in minor luxuries will carry through the rest of the year. Bain & Company forecasts that U.S. holiday spending in November and December will top $1 trillion for the first time. However, with mortgage rates hovering above 7.6 percent and household debt accumulating, whether consumers can maintain that spending pace into the winter shopping season remains uncertain.
