For decades, Hershey has been one of America’s most recognizable chocolate companies. But even iconic brands aren’t immune to changing consumer habits.
While Hershey continues to post solid financial results, executives and industry analysts say the company is navigating a more challenging environment as shoppers rethink discretionary purchases, seek healthier options, and adjust to higher prices.
Higher prices are changing buying habits
One of the biggest headwinds has been the soaring cost of cocoa.
After record-high cocoa prices in 2024 and 2025, Hershey raised prices on many products to offset higher ingredient costs. Although cocoa prices have since fallen sharply, consumers are still paying more for chocolate than they did just a few years ago, leading some shoppers to buy less frequently or choose smaller packages.
Consumers are looking for healthier snacks
Health-conscious eating is also reshaping the confectionery aisle.
Many shoppers are gravitating toward protein-rich snacks, lower-sugar foods, and functional products instead of traditional candy. Analysts have also pointed to the growing use of GLP-1 weight-loss medications, which have been linked to reduced purchases of sweets and snack foods among some consumers. Those trends have prompted food companies across the industry to rethink product innovation and marketing strategies.
Competition is increasing
Hershey also faces more competition than ever.
Premium chocolate brands, private-label products, and newer snack companies are all competing for consumers’ attention. In its first-quarter results, Hershey reported that while sales increased because of pricing, confectionery volume declined, reflecting consumer response to higher prices and increased marketplace competition.
Looking ahead
Despite these challenges, Hershey remains financially healthy. The company reaffirmed its 2026 sales and earnings outlook and continues investing in new products, marketing, and seasonal events such as Halloween, its largest selling season. It is also leaning into salty snacks and other growth categories while adapting to changing consumer preferences.
For Hershey, the challenge isn’t simply selling more chocolate—it’s convincing consumers that classic treats still deserve a place in shopping carts as eating habits continue to evolve.
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