The cost of Halloween treats could be giving your budget a fright these days. According to Michael von Massow, a Food Economist at the University of Guelph, there are a few reasons why prices are soaring this year.
Von Massow explains that the tariffs imposed by Canada on the U.S., combined with the seasonal demand for holiday candies, have led to increased prices. With candy having a long shelf life, consumers might feel the pinch of these costs until Valentine’s Day.
As Halloween approaches, the demand for candy spikes, putting further pressure on prices. Although Prime Minister Mark Carney has lifted most retaliatory tariffs, the cocoa industry faces challenges due to climate change. Von Massow points out that even small temperature changes can impact cocoa production, leading to higher chocolate prices.
Moreover, items like gummy bears have also seen price hikes, reflecting the broader trend in the confectionery industry. Statistics Canada confirms that raw cocoa prices have surged, affecting the cost of various food preparations, including chocolate bars and gum.
In response to the cocoa price surge, von Massow suggests a potential solution with lab-grown cocoa in the future, which could mitigate supply issues and price fluctuations. Additionally, the phenomenon of ‘shrinkflation’ is contributing to candy prices rising, as smaller portions become more common in packaging, leaving consumers feeling shortchanged.