Surging cocoa costs push consumers toward cheaper gummy candies, threatening chocolate’s dominance during Halloween, the second-biggest candy-selling holiday.

Chocolate candy volumes dropped 6% over 12 weeks while non-chocolate alternatives surged 8.3%, as shoppers balk at higher prices.

Candy makers are fighting back with promotions, new seasonal offerings, and formulations that rely less on expensive cocoa ingredients.

Halloween is shaping up to be a test for the chocolate industry, as high cocoa costs threaten to accelerate a consumer shift toward cheaper and trendier sweets such as sour gummies.

For candy makers, Halloween remains crucial — the holiday made up nearly 18% of annual US candy sales last year, second only to Christmas. But chocolate makers have been passing along costl

See Full Page