Rising sugar prices may cause an unfortunate Halloween this year
Sugar prices have risen exponentially this year and could lead to higher candy prices for Halloween. Thanks to a confluence of factors, the term ‘sugar inflation’ has become a thing in the wake of rising sugar prices.
Bad weather in particular has been a primary catalyst for lower supply, namely the onset of El Niño. As such, global suppliers such as Asia and Brazil cannot meet the demand. Drought and other severe weather conditions are not conducive to growth.
Nidhi Jain, an associate specialist at research firm The Smart Cube, said: “The intensity of the dry season that El Niño will affect this year could result in a 10-15% reduction in sugarcane yields globally.”
As such, this could spill over into higher candy prices on October 31. Consumers continue to buy sugar-related foods, the difference is that they will pay more for their sweets this year.
“Major candy and snack makers Hershey and Mondelez, which make brands including Reese’s Peanut Butter Cups and Sour Patch Kids, are also dealing with high sugar prices, contributing to rising costs, executives said during the company’s April earnings call,” a Wall Street Journal article.
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