Hershey raises candy prices as cocoa costs soar

The Hershey Company, based in the United States, confirmed in July 2025 that it would increase the prices of its confectionery products due to the unprecedented rise in cocoa prices. Over the past years, cocoa futures have skyrocketed by 178% in 2024, following a significant increase of 61% in 2023. Factors contributing to this surge include poor harvests in Ghana and Ivory Coast, which produce nearly 60% of the world's cocoa, alongside climate change effects, such as extreme heat waves and severe rainfall that have adversely affected crop yields. Hershey's spokesperson clarified that the price hikes are not connected to tariff or trade policies but are a reflection of rising ingredient costs. Notably, while some products will see significant price increases, approximately 75% of Hershey's product portfolio is still expected to remain priced under $4.00, as the company adjusts its pricing strategy to buffer against rising costs. Additionally, Hershey is considering alternate product offerings that are less cocoa-intensive and diversifying into snacking products, aligning with a broader strategy of responding to consumer preferences amidst economic pressures. The price adjustments are part of a comprehensive approach by the company to maintain consumer loyalty while addressing escalated production costs without alienating their customer base.