Hershey warned Thursday that higher gas prices and other inflationary pressures could lead consumers to buy less candy this Halloween season.
CEO Kirk Tanner said the final days leading up to the holiday will be “really critical” to determining the extent of seasonal sales. Since Halloween falls on a Saturday this year, more consumers are likely to buy candy at the last minute. Hershey, which makes Reese’s, Kisses, Milk Duds, Almond Joy and other confections, is expecting 35% of seasonal sales to happen this week.
“We need consumers to show up,” Tanner said. “We need them.”
While Hershey executives say Halloween participation intent is in line with last year, financial pressures on consumers could weigh on purchasing decisions. A LendingTree survey found Americans are planning on spending less this year, with 35% of consumers shopping for the holiday expecting to skip candy.
U.S. Halloween candy sales dropped 6.7% for the month ending Oct. 17 compared to the same time period in 2025, according to NielsenIQ data provided to The Associated Press. However, sales could still turn around. Kirk said the final days leading up to the holiday are when most consumers buy “big trick-or-treat packs,” a category where Hershey has an advantage.
The Halloween season generated $7.8 billion in confectionery sales in 2025, up 5.9% from the prior year, according to the National Confectioners Association. Consumer enthusiasm for the holiday remains strong, with 85% of Americans who are participating in the holiday saying they’ll celebrate by passing out treats to trick-or-treaters.
Hershey has invested heavily in the Halloween season, modernizing its marketing and expanding trick-or-treating options to include salty snacks. The company said its Reese’s Halloween item velocities, for example, are up 13% season-to-date.
Overall, Hershey’s candy sales are up. The company’s retail sales of non-seasonal candy, mint, and gum grew 3.7% compared to last year, though spending in convenience store channels declined.
“We are optimistic that our enhanced assortment, new pack types and value price points, seasonal innovation, and increased investment will drive engagement in these final days leading into this weekend’s celebrations,” Kirk said in prepared remarks.
