Confectionery industry navigates cocoa costs and shifting consumer trends

The confectionery industry is navigating a period of significant volatility characterized by high cocoa costs, supply chain pressures, and shifting regulatory landscapes. Despite these challenges, candy remains a resilient category as consumers continue to view it as an affordable treat.

Industry leaders note that rising costs for cocoa, sugar, packaging, and freight have made production and distribution expenses difficult to predict. Major companies like Hershey have faced substantial financial impacts from tariffs, with executives estimating expenses of $160–$170 million for 2025. However, relief may be on the horizon following a November 2025 executive order removing tariffs on several agricultural products, including cocoa.

On the consumer side, trends are shifting toward artisanal experiences. There is growing interest in ‘bon rush,’ a trend emphasizing complex textures, sophisticated flavor profiles—such as the use of sea salt, herbs, and floral notes—and ethically sourced ingredients. This movement reflects a broader consumer preference for authenticity and craftsmanship over mass-produced, uniform sweets.