Cotton Candy originated in the central Iranian city of Yazd. It is known as Pashmak by Iranians, and has been made for centuries.
It was introduced to the Western world in 1904 by William Morrison and John C. Wharton, at the St. Louis World's Fair as "Candy Floss" with great success, selling 68,655 boxes at the then-high $0.25, half the cost of admission to the fair.
Tootsie Roll of Canada Ltd. has a bagged product called "Fluffy Stuff" that claims it was first introduced at the 1893 World's Fair.
The United States celebrates National Cotton Candy Day on December 7.