Key Takeaways:
(P1) The Hershey Company is pivoting beyond its legacy chocolate brands to capture a larger share of the $295 billion global confectionery and snack market, announcing a new long-term strategy on March 31 that emphasizes investments in salty and “better-for-you” products.
(P2) "Before Chomps, the legacy brands were very masculine. They were speaking to a certain demographic. What Chomps was able to do through the stick format was bring a lot of new consumers in," Rashid Ali, cofounder of meat snack brand Chomps, said in a recent interview, highlighting the market shift Hershey aims to capture.
(P3) The strategic shift follows a period of underperformance for some of the largest names in confectionery. Both Hershey and rival Mondelēz International reported sharp profit declines in 2025, according to industry analysis, as volatile cocoa and sugar prices eroded margins. In contrast, premium chocolate maker Lindt & Sprüngli saw record growth, while emerging protein-snack brands like Chomps are projecting revenues of $900 million this year, demonstrating a clear consumer migration.
(P4) At stake for Hershey is its long-term growth trajectory as it navigates a market increasingly defined by health and wellness trends. The pivot introduces significant execution risk and direct competition with established and nimble players in the salty snack sector. The strategy will require substantial investment in supply-chain modernization with no guarantee of short-term gains, a challenge amplified by pressure on packaged food companies from the rising popularity of GLP-1 weight-loss drugs.
Hershey’s strategic realignment is a direct response to a fundamental shift in consumer habits. The health and wellness trend is reshaping the $228 billion confectionery landscape, with shoppers increasingly opting for snacks perceived as healthier, such as those that are sugar-free, high in protein, or plant-based. Dark chocolate sales are a bright spot, expected to "propel confectionery market growth" over the next decade, according to Fortune Business Insights.
However, the real growth is in adjacent categories. Meat snack brand Chomps, for example, has seen explosive growth by targeting new consumer demographics, with women making up about 70% of its customers. The company, which is on track to top $900 million in revenue, found that 81% of its growth last year came from buyers new to the meat snack aisle, proving the existence of a large, untapped market that Hershey now hopes to penetrate.
This is not Hershey’s first foray into the savory snack world, and history serves as a cautionary tale. The company acquired jerky brand Krave for $240 million in 2015, only to sell it back to its founder in 2020 after it floundered. The market is littered with similar stories, such as the near-collapse of jerky producer Stryve, which went public via a SPAC in 2021 and now trades as a penny stock.
Competition is fierce. Beyond agile billion-dollar brands like Chomps, Hershey will contend with giants like Conagra, maker of the legacy brand Slim Jim, and a growing army of private-label offerings from retailers like Costco and Target. The broader consumer packaged goods industry is also under pressure to streamline, as seen in Unilever's recent move to spin off its food division. For Hershey, success will depend on its ability to innovate and compete in a fast-moving category where it has previously struggled to gain a foothold.
This article is for informational purposes only and does not constitute investment advice.
