Here’s why Philadelphia chocolatiers are optimistic despite inflation

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This Halloween, trick-or-treaters might see much less chocolate in their bags than last year. Blame inflation and the rising cost of cocoa beans.

The price per ton has more than tripled since 2020, according to the International Cocoa Organization. Mass producers of chocolate like Hershey’s, Lindt and Nestle have increased their prices to offset these rising costs.

“This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa,” Hershey said in a statement.

Chocolate makers in Philadelphia say that holidays are a great time for their businesses. Confectioners in the heart of the city’s historic districts are now planning themed treats for the nation’s 250th birthday celebration in July 2026, all while navigating the sticker shock on cocoa.

Tony Walter, president of Lore’s Chocolates in Center City, said the industry is being affected by a variety of factors, ranging from freight and insurance costs to “the cost of doing business in the city of Philadelphia.”

“Many of the commodities that we use as well, whether it be sugar, cocoa, just milk, it’s all increased,” said Tony Walter, president of Lore’s Chocolates.

The Walter family has been operating the company since 1987. Their retail store, located a block away from the Liberty Bell, specializes in gourmet candies, many inspired by Philadelphia. He said he is not worried.

“After all of these years in the industry, I don’t think people will eat less chocolate. They’re going to eat more of the better chocolate and I think that bodes well for us. I hope it does, in that people will appreciate quality,” he said.

Philly’s craft chocolate makers say that what makes their chocolates unique is less sugar and more of that premium ingredient: cocoa. Mass-produced chocolates often contain a lot of sugar, which gives the product a long shelf life. But craft makers say there’s more dimension in the flavor of their chocolate.

“Sugar’s cheap, it goes a long way. With a shorter shelf life, we can’t make product a year in advance, making a fresh product,” Walter said.

Shane Confectionery on the 100 block of Market Street has been a confectioner’s factory since 1863. It was purchased by Eric Berley and his brother in 2010.

“You end up tasting things in a more musical way and it actually has kind of a beginning and middle and an ending taste. Whereas when things have too much sugar, you’re really just getting one note of  chocolate with sugar and it would be like comparing wine to grape juice,” Berley said.

Shane’s is also gearing up for the U.S. semiquincentennial, launching a tour of Philly’s confectionery history in partnership with Historic Philadelphia.

The company’s head chocolate maker, Kevin Pascall, has been with the business since it opened. He worries that cocoa crops, grown primarily around the equator in West and Central Africa, are becoming unsustainable.

“Cocoa is grown in tropical regions, some of which are some of the hardest hit by some of the more acute, early onset aspects of major climate change. So, dry seasons no longer being reliable, dry seasons, wet seasons, no longer being reliable wet seasons and just increased sunlight and temperature. These are things that are really detrimental to cocoa crops, which are already very difficult to grow,” Pascall said.

A disease called swollen shoot virus, along with climate change, have sent coca costs skyrocketing.

“The higher costs that translate to higher prices, my hope is that people will take chocolate not for granted,” Berley said.

“In some ways, consuming less but consuming better is a win in my book. Because, the point is, it’s rare, it’s a scarce resource that we can’t take for granted.”