The world of candy has had its ups and downs over the past few years, but it seems like Mars’s dream has come to fruition; candy has turned into an empire. Especially now, even as candy prices are drastically rising, people keep buying it, resulting in $31.4 billion in sales, a rise of 11.8%. Mars’s aspirations were only fulfilled due to his customers’ devotion and the deliciousness of candy, which overcame overseas problems and climate change, turning his business into an empire.
Why the Price is Rising:
Like most other products, you can trace the reason for candy’s steep inflation to the Ukrainian War. In preparation for the Ukrainian War and the loss of Russian oil, Europeans reduced their energy consumption, and chocolate manufacturers placed fewer orders for cocoa. Once they adjusted and transitioned away from Russian fuel, chocolate companies fought to replenish their cocoa supply creating a high demand with a low supply. A lack of fertilizer for the cocoa crops also points back to the Ukrainian War.
Another significant reason for the price hike is climate change. For example, the largest sugar-producing countries are Brazil, India, Thailand, and China. However, intense droughts in those regions have caused supply concerns, making it even harder for companies to produce their candy. Droughts in West Africa have impacted the main countries where cocoa plants grow: Ghana, Cameroon, and Nigeria, reducing their supply. This is only furthered by a unique weather phenomenon known as El Nino, which has increased the average global temperature and caused mass natural disasters.
Why People Still Keep Buying:
Despite the price increase, it does not seem like customers are going to stop buying anytime soon. This is evidenced by its sales, which reached $42.6 billion in 2022 and is expected to exceed $54 billion by 2027. Despite numerous health trends and dieting fads, candy still prevails as a popular treat that provides certainty for its customers and serves as a way to have affordable fun. Candy companies, recognizing their customers' increasing desire for a healthier lifestyle, are embracing transparency in their policies to build greater trust with the public.
Culturally, candy has become an important part of festivities and holidays like Halloween, Easter, Valentine’s Day, and Christmas. An astounding 25% of the candy industry’s revenue is made during Halloween, causing an average household to spend $44 on candy for one holiday, resulting in 2 billion dollars in sales. It has become such an integral tradition and symbol for so many of our holidays, that it is unimaginable to think of them without the candy associated with them.
Many correlate candy to happiness: according to the National Confectioners Association, “78% of consumers agree chocolate and candy help make them happy, and 79% agree positive emotions and physical health are interconnected” (3). This extra sense of comfort was especially important during the pandemic when life was incredibly uncertain and reality became daunting. So, while you may hear people complain about the rising prices of milk and gas, people’s love for candy stops them from ever complaining.
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