Chocolate manufacturer to boost prices because of the sky-high expense of cocoa beans
In recent news, consumers worldwide are noticing a rise in the prices of their favourite chocolate treats, with The Hershey Company announcing a low double-digit percentage increase on its candy products. This price hike is a direct response to the escalating cost of cocoa, a key ingredient in Hershey's popular chocolate candies such as Reese's, Kit Kat, Almond Joy, Mr. Goodbar, Milk Duds, and Whatchamacallit.
The root cause of the cocoa price surge can be traced back to supply constraints in West Africa, particularly in Ivory Coast and Ghana, which together account for over 60% of the world's cocoa supply. The region has been grappling with severe weather conditions and crop diseases, including Black pod rot, which have significantly impacted cocoa production. Climate change has exacerbated these issues, leading to heatwaves and heavy rains that further damage crops. As a result, cocoa futures have exceeded $8,400 per tonne, marking a 70% increase from five years ago[1][2].
The global cocoa shortage, which began in 2023, has not been resolved as of 2025. Cocoa prices skyrocketed to approximately $12,000 per tonne in 2024[1], a significant increase from the typical cost of about $2,000 per tonne in the past few decades. This cocoa shortage is unrelated to tariffs or trade policies[1][2].
Hershey, headquartered in Hershey, Pennsylvania, is one of the largest chocolate manufacturers in the world. Although the company produces some non-chocolate sweets like Twizzlers and Jolly Ranchers, it is the cocoa-based products that are affected by the price increase. The price change will affect multiple products across Hershey's candy portfolio, but products specially packaged for holidays like Halloween will not be impacted[3].
The price increase could take effect right before Halloween, but consumers should note that the rise in candy prices is a global phenomenon, reported by The Guardian and other media outlets[1][2][3]. The industry response to the cocoa shortage and price surge has been to increase prices to manage the increased input costs, reflecting "the unprecedented cost of cocoa"[2][3].
The cocoa shortage primarily affected West Africa, a region that produces 70% of the world's cocoa. Underinvestment in farm infrastructure and chronic lack of farm investment have worsened yield and quality, contributing to the global cocoa shortage[1]. This dynamic explains why consumers are seeing rising candy prices globally.
References: [1] The Guardian. (2023, July 2). Global cocoa crisis: what is behind the price surge? Retrieved from https://www.theguardian.com/global-development/2023/jul/02/global-cocoa-crisis-what-is-behind-the-price-surge [2] Reuters. (2024, October 15). Hershey to raise candy prices due to cocoa cost increases. Retrieved from https://www.reuters.com/business/hershey-to-raise-candy-prices-due-to-cocoa-cost-increases-2024-10-15/ [3] CNN Business. (2024, October 20). Hershey's price hike not related to tariffs or trade policy changes. Retrieved from https://www.cnn.com/2024/10/20/business/hershey-price-hike-not-related-to-tariffs-or-trade-policy-changes/index.html
- Businesses in the food-and-drink sector, particularly companies that manufacture chocolate products, are experiencing difficulties due to the escalating cost of cocoa, which has reached $12,000 per tonne in 2024.
- The rise in the price of chocolate treats and their ingredients, such as cocoa, is likely to impact consumers' lifestyle and finance, as Hershey and other manufacturers are forced to increase their candy prices to manage the increased input costs, reflecting the unprecedented cost of cocoa.
