The world’s top confectionery companies are pinning hopes on a much-needed boost during Halloween after facing challenging years marked by underperformance compared to broader markets, according to data from investment platform eToro.

For their analysis, eToro compiled an equally weighted basket of eight leading global confectionery stocks. The findings revealed a 4% decline in value for these companies over the past year, while the MSCI World Index gained 30%. Over a five-year period, the confectionery basket returned just 5%, starkly contrasting with the impressive 72% growth of the MSCI World Index.

These figures highlight the sector's struggles, including rising production costs due to inflation and increased prices for key raw materials like cocoa and sugar. Profit margins have been squeezed, adding pressure on companies to adapt, especially as supply chain disruptions continue to impact manufacturing and distribution.

eToro market analyst Sam North noted that these challenges are compounded by heightened industry competition, complicating profitability and growth. “Market saturation has made it harder for companies to sustain growth, as innovative products often struggle to make an impact amid fierce price competition,” North commented.

Among the analyzed companies, only three — Hershey (+22%), Mondelez (+28%), and Lindt (+30%) — showed positive returns over the past five years. In contrast, global powerhouse Nestle, known for brands like Smarties and Quality Street, saw its stock value drop by 22% since 2019. Year-to-date, some companies have posted gains, such as Japan’s Meiji Holdings (+10%) and Ezaki Glico (+7%), while others, including South Korea’s Orion (-17%) and the U.S.-based Tootsie Roll (-8%), have reported negative performance.