Hershey’s premiumisation strategy – overview
- Hershey is expanding premium offerings beyond its traditional mass-market roots
- Premiumisation supports growth through higher margins and consumer trade-ups
- Acquisitions broadened Hershey’s presence in premium better-for-you snacking
- Seasonal occasions create strong opportunities for premium confectionery sales
- Success depends on balancing premium growth with mainstream appeal
Premiumisation is sweeping confectionery and the industry’s biggest players are getting involved, even The Hershey Company.
The maker of brands including Reese’s Pieces, Twizzlers and Jolly Rancher hasn’t traditionally been associated with premium products in the way some of its competitors such as Lindt & Sprungli and Ferrero Group have. But that’s all changing as the trend becomes impossible to ignore.
Premiumisation at Hershey
Over the past five years, Hershey has sharpened its focus on premium products as it looks to capitalise on one of confectionery’s fastest-growing trends.
The strategy reflects broader shifts in consumer behaviour. Across confectionery, shoppers are increasingly seeking products that offer greater indulgence, craftsmanship and novelty, even as they keep a close eye on spending. As a result, premium confectionery has emerged as one of the industry’s most attractive growth opportunities.
“Hershey is increasingly using premiumisation to drive growth, particularly in its core chocolate business within a highly penetrated market,” says Sandra Ahrens, data journalist for consumer goods at Statista.
The leadership’s ‘next generation’ portfolio strategy, she explains, builds on iconic brands while expanding into premium and better-for-you options, and accelerating growth in salty and functional snacking, with a five-year innovation pipeline.
And the shift is becoming more visible through the growing range of seasonal and gifting formats, and more shareable, indulgent products, such as Reese’s Seasonal Shapes and Hershey’s Kisses gift packs.
But consumer demand is only part of the story. Market dynamics are also accelerating the shift, with competitors including Mars, Inc., Nestlé and Mondelēz International ramping up investment in premium offerings.
Added to this, rising input costs, particularly cocoa, are creating a compelling business case for premiumisation as confectionery companies look to offset inflationary pressures through higher-priced offerings. Hershey is no exception, approaching premiumisation through a mix of acquisitions, innovations and brand-building.
Hershey’s premium moves
Hershey’s premium playbook spans acquisitions, innovations and brand-building, giving the confectionery giant multiple routes into higher-margin categories.
Alongside strategic acquisitions, the company has also invested in higher-quality ingredients, more sophisticated flavours and elevated product formats to encourage consumers to trade up within its portfolio.
Having said that, Ahrens notes that the company’s focus is firmly on ‘accessible premium’ rather than true luxury.
“Products like Hershey’s Nuggets and Symphony, and limited‑edition formats of core brands offer a more indulgent experience but are not seen as fully premium."
And acquisitions such as Lily’s in 2021 and LesserEvil in 2025 took the company into the premium better‑for‑you category.
Room for growth
“Hershey has had mixed success in attracting affluent consumers compared with its traditional mass-market chocolate buyers,” says Ahrens.
Its core brands, such as Reese’s and Hershey’s Bars, appeal to middle- to lower-income households due to accessible pricing and mass-market appeal. By contrast, its premium products represent only a small share of Hershey’s sales.
That said, the American multinational’s premium sales are growing and its potential in the space is huge.
Its relevance among higher-income consumers is increasing through the premiumisation of core brands, better-for-you ranges and the expansion of its salty snacks business.
“Acquisitions like Lily’s specifically target affluent, highly educated urban consumers, indicating a push beyond the traditional base,” says Ahrens.
What’s more, it’s well positioned to benefit from premium sales surrounding occasions such as Valentine’s Day, Easter, Halloween and Christmas, thanks to its broad range of premium seasonal offerings.
“The company generates a disproportionate share of its sales and profits during seasonal occasions,” says Ahrens. “Despite budget pressures, consumers continue to view confectionery as an affordable way to participate in celebrations and enjoy small moments of indulgence.”
This is reflected in the fact its 2026 Valentine’s Day sales grew by around 3.5%, while Easter met its high expectations.
These trends suggest Hershey’s premiumisation efforts are already proving successful.
Is premiumisation paying off?
Hershey’s premium push is still at a relatively early stage, but there are signs the strategy is gaining traction.
While premium products account for only a small share of the company’s overall sales, acquisitions such as Lily’s and LesserEvil have helped Hershey expand into faster-growing, higher-margin segments beyond traditional confectionery. The company has also pointed to growing demand for better-for-you snacks, premium ingredients and more differentiated flavour profiles as it seeks to capture new consumers and occasions.
More broadly, Hershey’s focus on premiumisation reflects its efforts to drive value growth in a mature confectionery market, where innovation and consumer trade-up opportunities are becoming increasingly important.
Hershey’s premium future
Hershey’s challenge now is to premiumise without losing the broad consumer appeal that has long underpinned its success.
It’s a balancing act facing much of the confectionery industry, as manufacturers increasingly turn to premium products to drive value growth, offset higher input costs and meet demand for more indulgent experiences.
As consumers continue to seek affordable luxuries, premiumisation is set to remain a key battleground. Whether Hershey can successfully bridge the gap between mass-market appeal and premium positioning may ultimately determine its next chapter of growth.
