TL;DR
Sugar prices are rising, and Halloween candy prices might increase too. The dry season caused by El Niño could lead to a 10% to 15% reduction in sugarcane yield globally. American businesses are affected by the 90-year-old sugar program, paying more for sugar than their competitors in other countries. Consumers may experience higher-priced Halloween candy, but some manufacturers could face supply challenges due to the sugar shortage.
Get ready for “sugarflation” – higher prices for soda, baked goods, and even Halloween candy! Sugar prices are going up, and the situation might get worse due to tight supplies and unpredictable weather.
Experts say that the dry season influenced by El Niño could result in a 10% to 15% reduction in sugarcane yield worldwide. This means that satisfying your sweet tooth may cost a little extra due to the weather conditions and the increasing demand for sugar worldwide.
The root of the problem lies in the nearly 90-year-old sugar program in the US, which requires 85% of sugar purchases to come from domestic processors. The National Confectioners Association is working with lawmakers to reform this program, as American businesses pay much more for sugar compared to competitors in other countries. This program contributes to rising food costs for families, with American consumers paying $2.4 billion to $4 billion more per year for food.
According to the latest Consumer Price Index, sugar and sweets prices were up 11% in June compared to the previous year. Candy and chewing gum prices increased by 13.2% year over year, and carbonated drinks like soda went up by 9.1%.
This sugar shortage might also impact Halloween candy availability. Last year, the Hershey Company warned of supply challenges that could affect Halloween candy demand. However, this year, the popular candy company is in a better position, assuring that there won’t be a shortage for Halloween. Still, consumers might sense higher-priced Halloween candy due to the global sugar supply issue.
As a small and independent retail store owner, it’s essential to be aware of these potential impacts on candy prices. You might consider stocking up on Halloween candy early to avoid any supply issues or price hikes. Additionally, informing your customers about the situation and offering alternative treats or options can help manage their expectations and maintain their trust in your store. Being proactive and staying informed about market trends can go a long way in navigating these challenges and providing the best shopping experience for your customers.
