It’s that time of year again. The holiday season’s herald, Halloween, is upon us and that’s got many a brand manager all aflutter about how inflation and (GASP!) candy shortages are going to affect margins this year.
According to the Washington Times, the candy industry is facing unprecedented pressures due to pandemic-induced inflation and shortages of ingredients thanks to the Russia-Ukraine war.
“Hershey said it will be unable to produce enough seasonally decorated Almond Joy, Reese’s Peanut Butter Cups and other treats to keep up with demand.”
These shortfalls will impact festivities throughout the rest of the year and potentially beyond. Despite this, shoppers have already started hunting down their favorite candies for Halloween and will soon begin preparing for Thanksgiving, Christmas, and New Year’s Eve.
In response to reports that Halloween is losing its relevance for consumers, some big brands are looking to the bigger picture and reprioritizing their timelines around other major shopping events. Brands like Target and Amazon are bringing forward their annual Black Friday deals, offering shoppers early access to savings. Big moves like this tell us that other retailers should already be considering how to best plan for shortages this Halloween and beyond, to keep up consumer enthusiasm around holidays.
What is Causing the Candy Shortage this Halloween?
Will we be referring to it as the Great Halloween Candy Shortage of 2022, years from now? That depends on whether the shortages we’re witnessing continue into the future and become the accepted norm. With the Russia-Ukraine conflict forging ahead long after most experts predicted it would end, it would appear we haven’t seen the last of scarcities.
Due to fuel shortages, sugarcane is currently being reappropriated for ethanol production, while the candy industry is still struggling to catch up after pandemic-provoked inflation and logistics challenges. Cocoa and other ingredients are also in shorter supply and, in turn, more expensive this season. Inevitably, those price increases will be (at least in part) passed on to consumers.
Consumers, for their part, are attempting to be prepared earlier than ever, to avoid missing out. Our recent report shows:
- 79% were somewhat or very concerned about supply chain issues affecting their holiday
- 82% were somewhat or very concerned about inflation impacting their holiday
As always, savvy shoppers are getting in early to feel better prepared for the festive season. With added pressures around inflation and household budgets, as well as the widely publicized Great Candy Shortage, buyers are already hitting the aisles to nab a bargain and avoid empty shelves. This leaves retailers in a bit of a pickle. Keeping shelves full and customers happy bodes well for important holidays later this year. But how can stores keep up with demand this spooky season? There are solutions.
Holiday Shopping Solutions to Beat the Candy Shortage
Candy manufacturers have been quite open about the fact that supplies are going to fall short of demand this Halloween. Other brands are sure to be facing similar issues with supply and logistics, although some are keeping tight-lipped about it. With potential shortages from a number of brands this Halloween, retailers should consider alternatives to the candy-lined shelves they would normally present at this time of year. Here are some substitutions to help keep the ‘treat’ in trick or treat this Halloween. Retailers can maximize the impact of these substitutions by including the alternative items in the same section as traditional Halloween themed merchandise, and utilizing imagery and signage to help customers understand their options for substitutions:
Single-serve beverages: Juice boxes, mini soda cans, mini bottles of water, and other single-serve beverages are a great bucket-filler for Halloween.
Alternative snacks: Halloween wouldn’t be the same without the snacks. If shoppers can’t get their hands on quite enough candy, consider presenting them with mini pretzel bags, single-serve snack crackers, granola bars, and dried fruit boxes (raisins and cranberries, for example).
Small toys: Keep the kids happy with small, fun toys such as stickers, glow sticks, slap bracelets, pop fidget toys, and bubbles.
If the pandemic has taught us anything, it’s that where there’s a will, there’s a way. This season, we’ll see that shoppers are willing to adapt if it means keeping their holiday traditions alive. Supplemental substitutes like those above not only keep the shelves and shopping baskets full but also present an alternative to all that sugar consumption – which is sure to please many a parent. For retailers with dedicated Halloween sections, providing these alternatives puts customers at ease and encourages them to consider the store as a one-stop shop for all their future festive requirements.
