Hershey and several major chocolate manufacturers are raising prices once again, citing skyrocketing cocoa costs that show little sign of easing. The company said Wednesday it will increase U.S. retail prices later this fall, with some products getting smaller and others simply costing more. On average, the hikes will fall in the low double-digit range.
The company emphasized that Halloween-themed products will be spared from the increases. “This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa,” Hershey said in a statement.
The pressure isn’t limited to Hershey. Swiss chocolatier Lindt hiked its prices by 15.8% in the first half of the year. CEO Adalbert Lechner told investors that while long-term contracts helped soften the blow, the continued cocoa surge forced much of the cost onto consumers. Swedish candy maker Cloetta and food giant Nestlé have also raised chocolate prices in recent months.
Cocoa futures stood at $7,380 per metric ton Wednesday, more than double what they were two years ago. Though prices are down from a peak of nearly $12,000 last December, they remain highly volatile, driven by crop diseases, erratic weather, and supply risks in West Africa, which produces over 70% of the world’s cocoa.
“It’s almost a bit dangerous to comment on this because it’s changing so fast,” said Cloetta CFO Frans Ryden last week. Prices surged in early June on concerns in Ivory Coast, dipped slightly with improved forecasts from Ghana and Latin America, then climbed again after heavy rains raised disease concerns in West African farms.
As raw costs soar, so do retail prices. According to NielsenIQ, the average price of a U.S. chocolate bar rose 41% from $2.43 in July 2021 to $3.45 last week. That increase is beginning to impact consumer behavior—unit sales of chocolate fell 1.2% over the past year.
Tariffs also loom over the industry. In April, former President Donald Trump floated a 21% tariff on cocoa imports from Ivory Coast, though implementation was later delayed. The National Confectioners Association is now lobbying the administration to shield cocoa from new trade penalties, highlighting that the U.S. imports nearly $4.4 billion worth of chocolate and candy annually while exporting almost $2 billion in American-made treats.
For now, candy lovers may need to get used to paying more—or getting less—for their favorite chocolate.
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