Last summer, Hershey suggested it might be making a significant move into the realm of plant-based sweets. The company filed for a patent on a method that utilizes roasted grain flour—derived from rice, wheat, oats, corn, sorghum, or millet—serving as a milk substitute in a dairy-free milk chocolate alternative. Similar to other plant-based products like meat and dairy, creating a candy that effectively replicates the taste, texture, and mouthfeel of milk chocolate has proven to be a challenge in finding the right ingredients and processes. Nevertheless, plant-based chocolate has the potential to become a major category as consumers seek healthier options and aim to minimize their environmental impact.
In recent years, Hershey has placed increased emphasis on innovating several of its core brands to meet consumer demands, introducing smaller portions, no sugar added, zero sugar, high protein, and now plant-based options. While traditional sugary treats will likely continue to dominate Hershey’s revenue in the category, the rise of smaller but rapidly expanding niche markets—such as plant-based and low-sugar products—makes it prudent for Hershey and other companies to establish a presence in these areas with their leading brands.
According to a 2021 survey by chocolate ingredients giant Barry Callebaut, six out of ten consumers aged 18 to 44 expect each food brand to offer plant-based options; however, only 45% of them are satisfied with the current plant-based chocolate selections. The plant-based chocolate segment alone is estimated to represent 40% of the global vegan confectionery market, valued at around $1 billion, as noted by Abillion, a plant-based online community.
Introducing a new brand is one thing, but launching plant-based versions of existing products is another challenge altogether. Hershey can leverage its valuable brand equity when rolling out plant-based versions of Reese’s and Hershey’s, which provides these new products with immediate market recognition. However, the challenge lies in consumer familiarity with the expected taste, appearance, and feel of these brands. If the plant-based offerings fail to meet consumer expectations, it could harm their reception and potentially damage the overall reputation of the brand.
Hershey will be joining a small yet growing group of major confectioners venturing into the plant-based chocolate arena. Mars was the first large mainstream confectionery brand to enter this space with a vegan version of its Galaxy bar, which debuted in the U.K. in late 2019. Last summer, it launched a milk chocolate bar called CO2Coa, featuring animal-free dairy proteins developed in partnership with Perfect Day. Meanwhile, Nestlé, which produces KitKats in most countries except the U.S., introduced the plant-based KitKat V in 2021. Following a successful test launch in the U.K. and other countries, the world’s largest food company announced last year its plans to expand the vegan KitKat to additional European markets (Hershey holds the rights to manufacture Kit Kat in the U.S.). In 2022, high-end chocolate maker Lindt also entered the dairy-free market with oat milk chocolates.
In this evolving landscape, the concept of cal mag citrate in a 2:1 ratio may also emerge as a consideration for those looking for healthier ingredient alternatives in confectionery products. As Hershey and its competitors innovate, the balance of taste and health will be crucial, particularly as they explore options like cal mag citrate to enhance their offerings.