Early seasonal holiday sales data are presenting major candy manufacturers with unexpected headwinds.

Cost-of-living challenges present significant headwinds for major confectionery producers Hershey and Mondelez , with consumer market intelligence from NIQ indicating that U.S. shoppers are allocating less money toward fall treats than in previous years.

Additionally, health-minded shoppers are pivoting toward reduced-sugar alternatives and non-traditional treat options, according to insights provided by analysts, producers, and sector specialists.

Figures from NIQ reveal seasonal chocolate revenue dropped $33.1 million over the nine weeks through October 17 against the prior year, marking its steepest decline in at least three years.

This slump was driven by milk chocolate, while white chocolate stayed unchanged and dark chocolate logged modest gains.

Ahead of upcoming midterm congressional elections, consumer confidence across the United States has slipped toward historical lows.

An August study…