Hershey confirmed on July 22–23, 2025, that it will raise prices on many of its chocolate products by a low double-digit percentage—roughly 10% to 20%. Consumers can expect to see these increases roll out within the next 90 days, taking the form of higher retail prices and smaller package sizes, also known as “shrinkflation.”
Why the Price Hike?
The primary driver of this increase is the soaring cost of cocoa. Cocoa prices peaked at over $12,000 per ton in late 2024 and are still holding strong at $7,500–$8,400 per ton—nearly twice the cost from just two years ago. This spike stems from major crop losses in West Africa, where climate change and disease have devastated yields. Hershey emphasized that this decision is not tied to new tariffs or trade policies. Although cocoa tariffs did cost the company between $15–20 million over the past year, the current price hike is strictly a response to skyrocketing ingredient costs.
What’s Affected?
The price increase will impact well-known Hershey brands such as Reese’s, Kit Kat, and Almond Joy. However, the company expects that approximately 75% of its products will still be priced under $4, aiming to keep popular snacks relatively accessible to everyday shoppers.
Industry-Wide Challenge
Hershey isn’t alone—other major chocolate manufacturers like Lindt, Nestlé, Mondelez, and Cloetta are also raising prices in response to the cocoa crisis. According to Nielsen data, retail chocolate bar prices in the U.S. have already increased about 41% since July 2021, rising from $2.43 to $3.45 on average. This has led to a slight dip in sales, down around 1.2%.
What Consumers Can Expect
As the changes roll out—just ahead of the busy Halloween season—shoppers may notice both higher price tags and slightly smaller candy packs. Despite this, Hershey aims to maintain value for customers, with most of its items still available at a price point below $4. Climate-related cocoa shortages and crop disease are the real culprits behind the price hike—not politics. So, the next time you reach for a Reese’s, it might be a bit smaller, a bit pricier, or both.
