Halloween candy sales are off to a slow start this year as U.S. consumers grapple with high living costs and steep chocolate prices, with elevated fuel costs emerging as a key pressure point on household budgets.

Halloween candy sales fell 6.7% in the month ending Oct. 17 compared with the same period last year, according to NielsenIQ, a market research firm. NielsenIQ also recorded an 11.7% decline in candy sales in mid-September, erasing the preseason gains the category had enjoyed in each of the previous two years. The declines cover a stretch before the final pre-Halloween rush, the season's peak selling window for the confectionery industry.

Chris Costagli, a vice president and food thought leader at NielsenIQ, said high gas prices have worsened Americans' concerns about affordability and are dampening demand for Halloween treats. As of Friday, the average price of a gallon of regular gasoline in the United States stood at $4.29, up nearly 40% from a year earlier.

"I think what you're seeing now is a consumer that's spending so much additional money on fuel and housing and clothing and food," Costagli said. "Some of the decisions they're making about Halloween candy, it's not necessarily because, 'I notice it's more expensive than last year,' it's, 'I can't afford it this year because I've paid so much more for so many other things. I just don't have the financial means to buy it this year.'"

Costagli noted that through mid-October, small bags of candy were the only package sizes posting sales growth, while large and extra-large bags registered the biggest declines. The pattern suggests shoppers are still buying for Halloween but keeping a lid on how much they spend — consistent with the affordability pressures he described.

U.S. candy prices have been climbing faster than the overall rate of inflation for several years. Government data show candy and gum prices were up 44% over a five-year period as of September, while prices for all food eaten at home rose 22.5% over the same span — a gap that means candy has gotten pricier relative to the rest of the grocery cart.

The squeeze is visible on store shelves. This week, discount grocer Aldi advertised a 135-piece variety pack of Mars Inc. chocolate bars — including Milky Way, Trix and Snickers — for $19.87, almost the same price consumers paid for a 250-piece variety pack five years ago.

Cocoa prices are the main culprit behind the surge. According to the U.S. Bureau of Labor Statistics, global cocoa prices reached a record high of $10,710 per metric ton in January 2025, driven by poor weather in West Africa — which supplies 70% of the world's chocolate — and speculative trading in the cocoa futures market.

Cocoa prices had been falling steadily since then, hitting $3,241 per metric ton in March. But they began climbing again in the spring after the Iran war disrupted Africa's fertilizer supplies. The El Niño weather pattern is also expected to hurt production, with hot, dry conditions forecast through February.

Yet even where prices are lower than last year, consumer demand remains muted, Costagli noted. Nielsen data show the average price of non-chocolate Halloween candies, such as gummies and lollipops, was $6.08 per pound in the nine weeks ending Oct. 17, roughly 3% lower than last year. The discount did not translate into a bump in sales, reinforcing that this year's pullback stems more from strained household budgets than from candy prices alone.

Sally Lyons Wyatt, a global executive vice president and food industry adviser at market research company Circana, said U.S. consumers have been coping with higher grocery prices by making smaller, more frequent trips to the supermarket and buying products right before they intend to use them. That behavior makes her wonder whether shoppers are holding off on candy purchases until closer to Halloween this year.

"People are very intentional and thoughtful about what they want to consume, not just for holidays, but in general," she said. "I do believe we will still see softness overall with candy, but I don't think Halloween is doomed."

The National Confectioners Association, a trade group that represents candy makers including Mars, Smarties Candy Co. and Ferrara Candy Co., said it remains optimistic about Halloween sales.

"We are just now entering the peak period for Halloween and consumer enthusiasm remains incredibly strong," the group said in a statement Friday.

Sales figures from the final days before Oct. 31 will show whether shoppers did hold off until the minute — and whether that late activity was enough to make up the category's early losses.

This story was originally featured on Fortune.com.