Crafting among the world’s most beloved confections, Hershey has been identified for its chocolate and sweet creations since its founding in 1894.
With the vacation season, notably the Halloween and Christmas months, being the corporate’s most worthwhile time of the 12 months, it may appear virtually sure that Hershey’s sweet gross sales would dominate the market.
Nonetheless, a stunning pattern is starting to reshape the corporate’s enterprise.
This 12 months, Hershey rolled out its traditional vacation choices, together with festive shapes, themed packaging, and seasonal favorites, alongside new improvements reminiscent of Reese’s Peanut Butter Mini Pumpkins offered unwrapped in resealable baggage to chop packaging prices.
But throughout the firm’s October 30 earnings name, CEO Kirk Tanner famous that Halloween sweet gross sales have been off to a gradual begin. He stated among the lag could have been attributable to Halloween falling on a Friday this 12 months, which tends to maneuver the ultimate gross sales push later within the season.
In response, Hershey said plans to speculate extra in client insights to refine its product combine, pricing, and packaging on a year-round foundation, not simply throughout the holidays. The corporate additionally intends to spice up digital advertising efforts to drive progress, whereas persevering with to assist artistic product collaborations like the favored Reese’s Oreo partnership.
Goldman Sachs Inventory Analyst Leah Jordan wrote in a be aware in September: “We expect recent pricing announcements to drive outsized earnings growth in FY26 with a solid consumer backdrop supporting better-than-expected elasticities, noting HSY’s historically strong pricing power tied to its iconic brand portfolio.”
The Hershey Firm reveals a brand new technique amid “disappointing” Halloween sweet gross sales.
Picture supply: Getty Photos
Hershey grows in an sudden class
Hershey (HSY) stays the most important chocolate producer within the U.S., and the corporate reported third-quarter 2025 internet year-over-year gross sales progress of 5.6% in its North America Confectionery phase.
Nonetheless, its strongest progress now comes from a unique a part of its enterprise: salty and savory snacks.
Past its iconic chocolate manufacturers, reminiscent of Reese’s, Kisses, and Equipment Kat, Hershey owns a number of top-performing snack manufacturers, together with SkinnyPop, Dot’s Pretzels, and Pirate’s Booty.
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This almost doubled progress in salty snacks highlights shifting client demand. Since snacks are consumed extra regularly than sweet, it is no shock this class is fueling a lot of Hershey’s latest success.
The worldwide sweet market dimension was valued at round $73.4 billion in 2025 and is predicted to develop at an annual price of 4.6% via 2030, reaching $97.6 billion, in response to Mordor Intelligence.
In the meantime, the worldwide salty/savory snack market dimension was valued at roughly $250.5 billion in 2021 and is anticipated to achieve $386.8 billion by 2030, rising at an annual price of 4.9% via 2030, in response to Grand View Analysis.
Development on this phase is essentially pushed by customers searching for more healthy snacking choices.
Hershey invests within the wholesome snack market
This rising wholesome snack pattern has not gone unnoticed by Hershey, which has been actively responding to this shift since 2017, when it acquired Amplify Snack Manufacturers Inc. for $1.6 billion, the most important acquisition within the firm’s historical past.
Within the years following, Hershey has steadily expanded its portfolio via the acquisition of extra better-for-you snack manufacturers and the creation of recent merchandise.
Hershey’s better-for-you snack model acquisitions
- SkinnyPop: Low-calorie popcorn and one of the vital widespread wholesome snack manufacturers within the U.S. Acquisition accomplished December 2017. Supply:CNBC
- Pirate’s Booty: Puffed corn and rice snacks positioned as a cleaner various. Acquired in 2018 via the Amplify Snack Manufacturers Inc. acquisition. Supply:The Hershey Firm
- ONE Manufacturers: Low-sugar, higher-protein vitamin bars. Acquisition accomplished in September 2019. Supply:The Hershey Firm
- Dot’s Homestyle Pretzels: Positioned as a better-for-you snack with easier elements in comparison with most fried chips. Acquisition accomplished in December 2021. Supply:The Hershey Firm
- LesserEvil: Snacks made with cleaner, natural elements. Acquisition accomplished in April 2025. Supply:The Hershey Firm
BrandAcquisition DateReason it’s “better-for-you”
ONE Manufacturers
September 2019
Low sugar, excessive protein vitamin bars
SkinnyPop
December 2017 by way of Amplify
Popcorn with easier elements, lighter snack various
Pirate’s Booty
December 2018 by way of Amplify
Puffed corn/rice snack, cleaner-snack positioning
Dot’s Homestyle Pretzels
November 2021
Pretzel snack model, snack various with easier elements
LesserEvil
April 2025
Natural snack model, clean-label, better-for-you place
Hershey has additionally begun making use of the better-for-you pattern to its confectionery enterprise.
It lately launched the ONE x Hershey’s Double Chocolate protein bar, which incorporates 18 grams of protein and one gram of sugar. It additionally partnered with professional golfer Bryson DeChambeau to promote it to the athletic client.
Hershey’s client has modified
This evolution displays a broader change in client conduct. As folks have grow to be extra health-conscious, demand for snacks with cleaner elements, fewer energy, and useful advantages continues to rise.
These evolving wants and preferences may be unpredictable at instances, which is why firms make investments thousands and thousands in pattern forecasting to remain forward of the sport and outpace their rivals.
“Through thoughtful pack and product innovation grounded in consumer trends and understanding, we help retailers deliver more options and help increase sales,” stated The Hershey Firm CCO Tiffany Menyhart on the 2025 NACS Present.
The worldwide better-for-you snacks market is projected to develop from $32.7 billion in 2024 to $70.3 billion by 2035, with an annual progress price of 7.2%, in response to Reality.MR.
North America holds the most important share of the worldwide better-for-you snacks market, primarily as a result of excessive demand for these merchandise from its inhabitants.
Hershey navigates business challenges
Hershey faces a number of mounting headwinds within the world chocolate market.
Cocoa costs have surged attributable to excessive climate in West Africa, which produces round 70% of the world’s cocoa. Together with inflation, tariffs, and ongoing supply-chain disruptions, these pressures have raised prices and constrained provide since 2024.
To remain aggressive, Hershey is diversifying its elements and lowering its reliance on cocoa by incorporating peanut butter, caramel, and wafers into its merchandise. The corporate can also be forming strategic partnerships to broaden its portfolio and income base.
Including to those challenges, new measures in April by the U.S. Division of Well being and Human Providers (HHS) and the U.S. Meals and Drug Administration (FDA) will part out six petroleum-based artificial dyes from the nation’s meals provide by the top of subsequent 12 months.
In response, Hershey has dedicated to eradicating artificial dyes from all its merchandise by the top of 2027, a serious promise on condition that a lot of its candies, together with Jolly Ranchers, Twizzlers, and Reese’s Items, depend on them.
“Analysts’ consensus view stresses that even with product innovation and new snack category launches, the slow top-line growth may constrain Hershey’s ability to outdistance cost increases,” stated Merely Wall St.
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