Why your favourite chocolate is now more expensive | Cocoa price surge explained

If your chocolate stash is running low, you might want to refill it before it burns a bigger hole in your pocket. Globally loved brands including Hershey’s, Nestlé and Lindt are all raising chocolate prices, citing one key reason: soaring cocoa costs.

Hershey’s has confirmed a double-digit price increase across its confectionery portfolio. “This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa,” a company spokesperson told Reuters on July 22. The company had already hinted in May that consumers could expect higher prices through the second and third quarters of 2025.

Nestlé India, too, is grappling with similar pressures. The company reported a 12% drop in quarterly profits, mainly due to raw material inflation, with cocoa and milk being major contributors. The rising input costs have forced Nestlé to hike select product prices, including those in its KitKat range, though this seems to have dented demand in categories like milk products and nutrition.

Over in Europe, Lindt & Sprüngli has taken a different but equally tough call—despite already hiking chocolate prices by 15.8% this year, the Swiss premium brand is planning another round of increases in 2026. The company admits that volumes have taken a hit, particularly in North America. Still, Lindt raised its full-year growth forecast on the back of strong European sales.

What’s behind this global meltdown?
Cocoa prices have surged dramatically over the past two years, hitting record highs in late 2024 due to poor harvests in Ghana and Ivory Coast, the world’s top cocoa producers. While prices have slightly dipped from their December peak, they remain well above average, continuing to strain manufacturers and supply chains.

In India, chocolate lovers may see price increases on imported treats more than domestic brands. But the pressure is spreading fast. Nestlé India has already adjusted prices and may not be the only one. Smaller players are likely to follow suit or quietly shrink pack sizes to offset costs.

There is, however, a potential sweetener on the horizon. A landmark UK-India Free Trade Agreement signed this month could ease some of the pressure. Starting next year, tariffs on UK chocolates and biscuits will be reduced, which might eventually help offset some price hikes, especially for premium British brands entering the Indian market. The duty on chocolates, which currently hovers around 30–40%, is expected to be gradually slashed under the agreement.

Until then, keep an eye on the MRP, and maybe savour your stash a little more mindfully.