Hershey’s Price Surge: Double-Digit Hike Hits Chocolate Aisles Amid Global Cocoa Crisis

The Hershey Company has confirmed it will raise prices on its iconic chocolate and candy products by low double-digit percentages, citing record-high cocoa prices as the primary reason behind one of the largest price adjustments in its history. The change will impact household favorites including Reese’s Peanut Butter Cups, Kit Kat, and Hershey’s Kisses, marking a new chapter in the global chocolate market shaped by climate and supply shocks.

Why Are Prices Going Up?

1. Cocoa Chaos

The main driver of this price hike is the unprecedented surge in cocoa costs: Cocoa futures jumped 178% in 2024, following a 61% rise in 2023. The reasons? Poor harvests in Ghana and Ivory Coast, the world’s leading cocoa suppliers, triggered by:

1. Extreme weather patterns intensified by climate change
2. Crop disease outbreaks
3. Aging plantations and underinvestment

Although prices have slightly cooled from their $12,646/ton peak in December 2024, they still hover at $8,100-$8,400 per metric ton, up more than 70% over the past five years.

2. Not a Trade War Move

Hershey emphasized this adjustment is not linked to tariffs or trade regulations, but a direct response to skyrocketing raw ingredient costs, particularly cocoa.

What This Means for Consumers

Price Increase Details:

The average hike will range from 10% to 20%, depending on product and retailer. Expect these increases to roll out over the next 60-90 days, though the exact timeline will vary.

Shrinkflation Is Here:

Don’t just expect higher prices, some products will get smaller, too. This quiet tactic, called shrinkflation, means you’ll get less chocolate in the same-size package, often at a higher cost.

Still Affordable?

Hershey says about 75% of its products will remain under $4, aiming to keep its treats within reach for most shoppers.

The Business and Market Strategy

Despite the higher costs, consumer demand for Hershey products remains strong. Seasonal staples like s’mores kits and back-to-school treats continue to perform well. However, Hershey’s leadership admits that even with these adjustments, profit margins are under pressure. Similar challenges are seen across the industry:

Chocolate makers like Lindt have also raised prices.

Yet, those hikes haven’t fully offset the rising costs of cocoa and other raw materials.

Hershey's response? Use hedging strategies to manage future volatility while maintaining product accessibility and brand trust.

A Global Supply Chain Under Stress

Looking forward, the situation could get worse before it gets better:

Analysts predict another 10% drop in West African cocoa output heading into the 2025-2026 season, due to persistent weather and disease issues. That means cocoa may remain expensive throughout 2025 and possibly well into 2026.

The result? Chocolate lovers should brace themselves: higher prices and smaller packages are likely the new normal.

More Than Just a Chocolate Problem

This isn’t just about candy. Hershey’s price increase highlights how climate change, economic instability, and fragile supply chains are reshaping the global food industry. From coffee to cocoa, everyday indulgences are becoming more vulnerable to distant disruptions.

And while Hershey is trying to balance costs without alienating consumers, the broader question remains: How sustainable is the future of affordable chocolate?