The price of cocoa, the active ingredient in chocolate, is rising amid renewed concerns about global supplies. And chocolate companies are raising candy prices.
The Hershey Co. on Monday confirmed for CSP that it is increasing prices with its retailers.
“To support our approach, we’re making a price adjustment with our retail customers,” a spokesperson for The Hershey Co. said. “This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa.”
The Hershey Co. spokesperson added that “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, ensuring that Hershey treats stay accessible and affordable for families everywhere.”
The Hershey, Pennsylvania-based company generates more than $11.2 billion in annual revenues and its portfolio includes the chocolate brands such as Hershey's, Reese's, Kisses and Kit Kat.
Swiss chocolate manufacturer Lindt & Sprüngli said in reporting its second-quarter earnings on July 22 that earnings before interest and taxes (EBIT) margin was affected by higher cocoa material costs.
Lindt & Sprüngli CEO Adalbert Lechner told investors on the call that due to significantly higher input costs for cocoa, double-digit pricing actions were required to be taken in all markets over the last six months.
“The development of the global chocolate market in the first half of 2025 was a continuation of what we saw in 2024, with cocoa prices remaining close to record highs,” Lechner said according to a transcript from financial services site AlphaSense.
The Swiss chocolate maker said it raised prices by 15.8%.
“Due to significantly higher input costs for cocoa, double-digit pricing actions were required to be taken in all markets over the last six months,” Lechner said on the call. “Please bear in mind that not all price increases in all subsidiaries were implemented on Jan. 1. So, in the second half, we will see an even higher effect of the implemented price increases.”
Republican U.S. House members from Pennsylvania have weighed in on the rising costs of cocoa.
U.S. Rep. Scott Perry of York County said on his official website that “confectioners of all sizes are under significant threat if we don’t revise the looming tariffs on our chocolate manufacturing industry.” He said that “with the support of my colleagues, I contacted the Trump administration to request a fair and balanced trade policy—one that won’t inadvertently hamstring thousands of hardworking Americans in the chocolate industry, especially here in Pennsylvania. I specifically asked the United States Trade Representative to exclude cocoa beans and its related products from tariffs, because cocoa cannot be grown in the U.S.—it must be imported.”
The National Confectioners Association’s annual State of Treating report said inflation boosted 2024 total category sales to $54 billion, a new record; however, there was a 1.4% decline in volume, signaling a more value-conscious and cautious shopper. The report said chocolate dollar sales rose 0.4%, but volume fell below 2019 levels as consumers adjusted to higher prices.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.