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This Halloween season, shoppers can expect to pay more for Hershey and Mars candy bars. Cocoa prices have doubled since the beginning of 2024, and cocoa prices are expected to remain high until at least September 2025, according to Wells Fargo. Major candy producers are also changing their products to rely less on ingredients.
The banking giant’s Agri-Food Institute published a report this month detailing cocoa prices. Ingredients hit record highs as production declines due to changing climate patterns in West Africa, the crop’s main growing region. This year’s growing season was drier than expected because of El Niño weather patterns and winds that brought dust to the region, blocking the light cocoa pods need to grow, the report said.
David Branch, sector manager at the Agri-Food Institute, said cocoa differs from other crops in that it requires a very specific type of weather to produce. Therefore, producers cannot keep up with the growing demand for chocolate without raising prices.
“Warehouse inventory is at a 50-year low and has been declining for the past 15 months. Low production has disrupted the market and as a result, we have seen futures prices soar over the past two years as demand for chocolate for cocoa flavors and confectionery is still increasing year on year,” Branch said. . “It got pretty serious.”
cocoa production In Côte d’Ivoire, it is expected to decrease by 22.4% in 2024 compared to the previous year.
According to Branch, there are differences in how different classes of confectionery producers react to increased cocoa prices. Luxury chocolate manufacturers will continue to charge more for premium prices, he said.
Cheaper chocolate producers Hershey, Nestlé and Mars are being hit particularly hard and are focusing on boosting candies that don’t require expensive cocoa crops. Branch pointed out new gummy candies released this Halloween season, including Hershey’s Shaq-A-Licious, created with NBA legend Shaquille O’Neal. This fall, a cinnamon toast-flavored KitKat bar without chocolate was also released.
“They are essentially trying to increase sales of non-chocolate products while reducing the amount of chocolate they produce and increasing production,” Branch said. “They are reducing the amount of chocolate in their candies, perhaps by increasing the amount of fillings they use, such as nuts.”
Branch said consumers can expect to see a “shrink” in Halloween candy bags at grocery stores this year. There are fewer snacks, but the prices are the same as last year.
