Hershey to raise prices amid rising cocoa costs
The timeframe for the increases will vary by retailer.
Courtesy of Hershey's
On July 22, The Hershey Company announced it will be raising its candy prices due to cocoa costs, according to various media reports. Last week, the company informed its retail customers of a double-digit percentage increase, says The Wall Street Journal.
“We're committed to delivering the treats consumers love while continuing to invest in making our products and experiences even better. To support our approach, we’re making a price adjustment with our retail customers," a Hershey spokesperson tells Candy Industry. "This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa."
"[For years], we’ve worked hard to absorb these costs and continue to make 75% of our product portfolio available to consumers for under $4.00, ensuring that Hershey treats stay accessible and affordable for families everywhere," the spokesperson finishes.
The pricing increase will affect products across the company's entire confectionery portfolio. The candymaker has previously said it would raise prices to compensate for escalating cocoa costs, if needed. CBS News reports that in a May earnings call, Michele Buck, president of The Hershey Company until August 18, said the company would double down on products that are "less cocoa intensive" as it navigates the inflation of cocoa prices, as part of its vision to become a "snacking powerhouse."
"We love our chocolate business and we want to continue to grow that," Buck said. "But we also know that if we get into white spaces like sweets, better-for-you and salty, it adds incremental consumers and occasions." She also mentioned the company was working to absorb high input costs by adjusting the pack size and pricing together, especially on seasonal items, according to CNBC.
This is the most recent cost hike from the company after it raised prices a year ago, says Forbes, noting that the sweets maker posted a $224.2 million profit in its 2025 first-quarter earnings. The company is expected to take a $15 million to $20 million hit from the tariff policies imposed by President Trump this year. However, Hershey has requested an exemption from the president and is “hopeful” it could still receive one, Bloomberg reports.
Hershey snagged 5th place in Candy Industry's Global Top 100 chart for 2025, bringing in $11.2 billion in sales during 2024 thanks to its 20,000 employees and 22 plants.
Cocoa emerged as the best-performing commodity of 2024, with prices nearly tripling over the past 12 months. Despite expectations of a modest global surplus of 142,000 tons in the 2024-25 season, the industry continues to grapple with structural production issues that threaten long-term supply stability and profitability.
West Africa, responsible for over 70% of global cocoa output, faces severe production difficulties. Chronic underinvestment, climate change, and the spread of plant diseases such as black pod and swollen shoot have impacted over 80,000 hectares of cocoa farms in Ghana, the world’s second-largest producer. These diseases have reportedly affected 65% of West African cocoa farms, cutting yields by as much as 50% in some areas.
The Hershey Company is on the current Candy Industry “Global Top 100 Candy Companies” list. Click here to view the current “Global Top 100” rankings.
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