With the winter holidays just weeks away, it’s hard not to reminisce about childhood memories, when falling asleep on Christmas Eve felt impossible, consumed by the anticipation of racing down the stairs the next morning to see what Santa had left.
While presents were always the highlight, checking the Christmas stocking was a cherished tradition, and it almost always included candy.
The Hershey Company, a household name in chocolate and candy since 1894, has long thrived during the winter holiday season, making it its most profitable time of the year.
It would seem almost inevitable that Hershey’s holiday candy sales would dominate the market. Yet in 2025, an unexpected development caught the company off guard.
During an October 2025 earnings call, Hershey CEO Kirk Tanner revealed that Halloween candy sales had gotten off to a slower start than usual. He suggested that the timing of Halloween falling on a Friday this year may have delayed the season’s final sales push.
In response, Hershey stated plans to invest more in consumer insights to refine its product mix, pricing, and packaging beyond just the holiday season.
The company also aims to ramp up its digital marketing efforts and continue supporting creative product collaborations, such as the popular Reese’s Oreo partnership.
This slight setback may have inspired Hershey to take its holiday offerings to the next level, rolling out more new candy innovations than before.
Hershey 2025 holiday candy lineup
This year, Hershey (HSY) launched an entirely new line of holiday candy across its iconic brands, including Hershey’s Kisses, Kit Kat, and Reese’s, while also bringing back seasonal fan favorites.
Hershey’s new holiday candy
- Hershey’s Kisses Snickerdoodle Cookie Candy: Snickerdoodle-flavored Hershey’s Kisses with white creme and crunchy cookie pieces, wrapped in festive foils
- Kit Kat Peppermint Stick: Kit Kat coated in peppermint-flavored creme with crunchy red candy pieces
- Reese’s Mini Trees: Bite-sized, mini tree-shaped Reese’s
- Hershey’s Grinch Milk Chocolate Bar: ClassicHershey’s milk chocolate, featuring three new wraps inspired by The Grinch movie franchise: the Grinch, Max the Dog, and Cindy-Lou Who
Returning Hershey holiday favorites
- Hershey’s Kisses Holiday: Classic Hershey’s Kisses wrapped in red, green, and silver foils.
- Hershey’s Kisses Candy Cane: Mint candy cane-flavored Hershey’s Kisses with white chocolate and crunchy red candy pieces
- Hershey’s Kisses with Almond: Hershey’s Kisses filled with almond pieces
- Hershey’s Kisses Hot Cocoa: Hot cocoa-flavored Hershey Kisses with a marshmallow creme center
- Kit Kat Santas: Santa-shaped Kit Kat launched in 2024
- Reese’s Trees: Tree-shaped Reese’s
Hershey grows beyond chocolate
Hershey remains the largest chocolate manufacturer in the U.S., reporting a 5.6% year-over-year increase in North America Confectionery net sales for the third quarter of fiscal 2025.
Interestingly, the company’s fastest-growing segment is now salty snacks, including SkinnyPop, Dot’s Pretzels, and Pirate’s Booty, which posted a 10% increase in net sales for the quarter.
Snacks are consumed more frequently than candy, making them a powerful engine for Hershey’s long-term growth.
More The Hershey Company innovations:
- Hershey rival creates first-ever dream candy combo
- Hershey creates first-ever seasonal new candy ahead of Halloween
- Hershey teams up with Costco to make a dream candy combo
The global candy market size was valued at around $73.4 billion in 2025 and is expected to grow at an annual rate of 4.6% through 2030, reaching $97.6 billion, according to Mordor Intelligence.Â
Meanwhile, the global salty snack market size was valued at approximately $250.5 billion in 2021 and is anticipated to reach $386.8 billion by 2030, growing at an annual rate of 4.9% through 2030, according to Grand View Research.Â
Growth in this segment is largely driven by consumers seeking healthier snacking options.
Hershey’s innovation strategy to boost sales
Hershey’s evolution reflects a broader shift in consumer behavior. With changing preferences often hard to predict, the company invests heavily in trend forecasting to stay ahead of demand and competition.
“Through thoughtful pack and product innovation grounded in consumer trends and understanding, we help retailers deliver more options and help increase sales,” said The Hershey Company CCO Tiffany Menyhart at the 2025 NACS Show.
Tanner stated during the company’s third-quarter earnings call that a dynamic business environment has led the team to work diligently through the challenges, developing new strategies to continue driving growth.
“Innovation is such an important lever for sure, but I think being consistent with innovation is also important in balance with your core business,” said Tanner in the earnings call.
These efforts are paying off. Hershey’s chocolate retail sales rebounded to 4% growth after a 1% decline in 2024, while sweets penetration increased by 65 basis points through innovation and brand building.
Analyst perspectives on Hershey
Market experts are cautiously optimistic about Hershey’s outlook.
“Hershey’s been struggling for the last two-and-a-half years,” stock analyst Jim Cramer noted. “Now, I think a lot of that’s largely because of the GLP-1 weight loss drugs that have hammered the entire packaged food industry. However, I gotta tell you, I think the worst might be behind this one.”
Meanwhile, Goldman Sachs Stock Analyst Leah Jordan wrote in a note 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 Hershey’s historically strong pricing power tied to its iconic brand portfolio.”
Hershey’s latest earnings results demonstrate that even a beloved brand must adapt to changing consumer habits to remain relevant and prevent its business from stagnating.
