The money’s in the munchies: Unwrapping The Economics Of Halloween Candy
No cavities in the US’s sweet tooth! By Bronwyn Petry Oct. 18, 2023
Although Halloween has been celebrated in North America for hundreds of years, the recognizable tradition of trick-or-treating truly took off after the end of World War II, when sugar rations were lifted and factories went back to making candy. More families were moving to the suburbs, where kids could roam the streets safely after dark.
These days, more than 160 million kids in the U.S. go trick-or-treating every year.
As a celebration of the annual October sugar binge, we thought it would be fun to do a deep dive into the economics of Halloween candy. How much money is spent on treats every year? Is there one candy that rules them all?
Here’s a look at the financial side of your favorite festive goodies.
Give Me Something Good To Eat
If you’ve ever wondered how “fun-sized” candy and chocolate bars came to be, well — the answer is a bit depressing. According to Time, the innovation is linked to the Great Depression, when sugar was hard to come by and candy manufacturers were suffering.
The Curtiss Candy Company, which invented Butterfinger and Baby Ruth, started to sell “junior” versions of their chocolate, both to save their use of sugar and in the hope that customers would allow themselves a “small” treat. Soon, every other manufacturer was following suit, and the tradition has lasted to this day.
In its annual survey, the National Retail Federation (NRF) reported that 73% of people in the U.S. plan on celebrating Halloween in 2023, and predicts that Americans will spend $12.2 billion getting ready for Halloween — smashing last year’s record of $10.6 billion.
The lion’s share of that amount will go toward costumes — around $4.9 billion — and about $3.9 billion will be spent on decorations like fog machines and plastic skeletons.
Candy takes the third biggest slice of the Halloween pie: Just about a quarter of that $12.2 billion is predicted to be spent on sweets alone.
The Real-Life Willy Wonkas
The big candy makers — Hershey’s, which manufactures Reese’s, KitKat, and Skor, and Mars Wrigley, which makes Snickers, Twix, and M&Ms — treat October like it’s a month-long Superbowl.
To fully prepare for customer demand, CNBC reports that Mars Wrigley amps up production three months in advance; but their product planning begins much earlier than that.
Mars Wrigley’s president of sales says that the company sits down with key retailers as much as two years before they launch a product, so that they know the forecasts for trends like flavor, packaging and sustainability.
Mars Wrigley is privately owned, and doesn’t regularly publish its annual revenue: But, in 2021, it made $45 billion.
Hershey’s investor report noted that the company saw 16.1% net sales growth in 2022, up from 2021. They begin preparing their Halloween contributions in the spring of each year, on the same line as their regular candy, as insurance against running out.
Hershey estimates that sales around and for Halloween account for 10% of their annual revenue.
The Precious Loot
Bulk candy distributors Candy Store compiled a list of the top five most popular Halloween candies across the nation:
#5: Sour Patch Kids
#4: Skittles
#3: Hot Tamales
#2: M&Ms
#1: Reese’s Peanut Butter cups
Reese’s Peanut Butter Cups are the superstars of the candy bunch.
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