Halloween price hikes may make for a scarier holiday for your wallet

Halloween is creeping up on Americans' calendars and their wallets.

With Halloween falling on a Friday this year, celebrations are expected to be bigger. Consumers are opening their wallets for everything spooky, from candy to costumes, despite paying higher prices for many items.

U.S. consumers are expected to spend a record $13.1 billion this Halloween, up from $11.6 billion last year, according to the National Retail Federation. That breaks the previous record of $12.2 billion set in 2023. On average, Americans will shell out $114.45 per person, nearly $11 more than last year.

The Hershey Co., which makes Halloween favorites including Hershey bars, Kit Kat bars and Reese's Peanut Butter Cups, told CBS News there was "no impact on Halloween candy prices this season." But prices at the register are telling a different story. According to CBS, a box of 48 full-size chocolate bars has jumped from $40 to more than $50.

Cocoa prices have more than doubled since early 2024, according to the Wells Fargo Agri-Food Institute's latest analysis. Extreme weather in West Africa, which supplies 70% of the world's cocoa, has slashed yields, with heavy rains, crop disease and droughts causing the biggest supply deficit in more than 60 years.

The world's top producers, Ivory Coast and Ghana, saw cocoa output drop by more than 25% and 31%, respectively, in the last year.

Price-conscious shoppers have some options other than chocolate treats this year, Stew Leonard Jr., the president and CEO of Stew Leonard's, a family-owned grocery chain in the Northeast, told CBS News. He recommended gummy bears and Starbursts instead.

"They are about 18 cents. So almost half the price [of a mini chocolate bar]," he said.

Alcohol prices may also hit consumers' wallets, given a 15% tariff on imported spirits. That could encourage shoppers to turn to domestically produced wines, beers and spirits.

Nearly 90% of Halloween products, such as costumes and decorations, contain at least one component made overseas — most often in China — according to the Halloween and Costume Association. These products are vulnerable to supply chain issues and a 30% tariff rate on Chinese imports.

Consumers are expected to spend an average of $37.62 on a single Halloween costume this year, an 11% increase from 2024, according to the National Retail Federation.

Despite the higher costs, most U.S. adults still plan to celebrate Halloween, but some consumers are turning to budget-friendly techniques to rein in spending.

A report from Nielsen IQ shows that Gen Z consumers are embracing budget-friendly, reusable and DIY décor, often inspired by social media and driven by a focus on sustainability.

Millennials are combining new purchases with reused items, while baby boomers and Gen Xers are more likely to scale back spending but still participate in Halloween traditions, Nielsen found. In fact, 55% of Millennials and 42% of Gen Z say they'll prioritize DIY or reused décor this year.

Shopping early to avoid last-minute price hikes, choosing generic candy instead of big name brands and buying in bulk can also help save money, experts say.