Sugar rush: $2.23B sales of Halloween candy likely

SACRAMENTO, Calif. — In the week before Halloween, cash registers will ring up nearly $2.23 billion in candy sales, 600 million pounds of every confection imaginable for the nine out of 10 kids who will be ringing doorbells Saturday night.

For the biggest sugar rush of the year, Halloween candy sales are expected to nudge up 1.8 percent over last year, said Susan Fussell, spokeswoman for the National Confectioners Association. Landing on a Saturday this year only ups the opportunity for more celebrating, more candy, Fussell said.

Halloween, the industry's biggest candy selling holiday, ushers in a series of significant candy dates ending with Easter, which makes Saturday night's largess at the front door a harbinger for the season.

There's reason for optimism in the industry, Fussell said. Candy sales overall are up 3 percent, despite the anemic economy, she said, and even in the thick of the recession last Halloween, candy sales inched upward. About seven of 10 households plan to turn on the light for trick-or-treaters, spending an average of $18 on candy, the National Retail Federation said.

"Halloween has gotten to be such a huge event in the United States," said Todd Hale, senior vice president of consumer and shopper insights with the Nielsen Co.

Of the 600 million pounds of Halloween candy that the company predicts will be sold, 90 million pounds of it will be chocolate, outdistancing any other chocolate holiday, including Valentine's Day.

Although industry analysts say increases in commodity prices, such as sugar, could translate to more costs for consumers, Hale doesn't see anything scary enough to dampen purchasing.

Unlike other products, candy sales have not experienced a lot of consumer downtrading to less expensive brands, said Erin Swanson, an analyst with Morningstar who tracks Hershey. Still, Hershey, which owns 42 percent of the domestic chocolate market, is reporting flat sales and has also rolled out higher prices, which could cool sales, she said.

Candy manufacturers aggressively target Halloween with special packaging. This year for instance, Hershey's has bundled three Halloween-colored Kisses in single packages for handing out, said Jody Cook, a spokeswoman for the chocolate maker.

Jelly Belly Candy Co., based in Fairfield, Calif., churns out Halloween-themed candy, such as candy corn and pumpkins and jelly beans in autumn colors, said Tomi Holt, a spokeswoman for the candy maker. Sales are up 5 percent for Halloween. But even a 1-ounce package of Jelly Belly candy is 80 cents, too costly for a mass giveaway, she said.

The company instead focuses on seasonal candy for parties or gatherings and could be finding a niche in a growing adult Halloween market.

Halloween has become a $4.7 billion holiday, the bulk of it candy and costumes, but it also includes adult activity such as yard decorating, according to the National Retail Federation.

Many baby boomers grew up in the new suburbs of post-World War II, where trick-or-treating became popular, and have continued with Halloween as adults, said Fussell of the National Confectioners Association.