Chocolate is one of the most popular sweet treats on the planet. Global annual sales are approaching $135 billion. As consumers in developing countries acquire more wealth, they consume more chocolate. That's driving steady growth in the chocolate market of about 4% per year.
Chocolate is a favorite for many investors, too. A handful of snack food conglomerates dominate the industry. Given their size, growth is rather pedestrian. However, if you're after slower but more stable growth paired with dividend income, chocolate stocks can be a tasty option.
Investing in chocolate stocks in 2025
The production and sale of chocolate and related candy are largely controlled by a few massive multinational companies. The largest chocolate goods producer, Mars (responsible for world-famous candies such as Snickers and M&Ms), is privately owned by the Mars family. As for the publicly traded companies, here are the top stocks in the chocolate business we'll consider:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Nestlé (OTC:NSRGY) | $247.4 billion | 3.76% | Food Products |
| Mondelez International (NASDAQ:MDLZ) | $69.7 billion | 3.53% | Food Products |
| Hershey (NYSE:HSY) | $36.9 billion | 3.01% | Food Products |
| Chocoladefabriken Lindt & Sprüngli Ag (OTC:CHLS.Y) | $13.3 billion | 1.31% | Food Products |
| Kraft Heinz (NASDAQ:KHC) | $28.9 billion | 6.54% | Food Products |
| Tootsie Roll Industries (NYSE:TR) | $2.7 billion | 0.95% | Food Products |
| Simply Good Foods (NASDAQ:SMPL) | $1.9 billion | 0.00% | Food Products |
1. Nestlé
OTC: NSRGY
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NASDAQ: MDLZ
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3. Hershey
NYSE: HSY
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NASDAQ: KHC
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NYSE: TR
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Tootsie Roll Industries (TR -1.39%) is a family-run confectionery company that has been selling candies since 1896. The company sells many familiar candy brands, including Tootsie Roll, Andes Mints, Charleston Chew, and Cella's Chocolate-Covered Cherries. It uses chocolate to make many of its candies.
The company's growth rate slowed considerably in the first half of 2025 as customers became more resistant to higher prices. Tootsie Roll has been trying to pass through price increases to offset the impact of higher cocoa and chocolate prices.
7. The Simply Good Foods Company
NASDAQ: SMPL
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The Simply Good Foods Company (SMPL +1.07%) is a consumer packaged food and beverage company. Its portfolio features the Quest, Atkins, and OWYN brands. It sells a variety of nutritional snacks and beverages such as high-protein chips, bars, ready-to-drink shakes, and low sugar, low carb sweets and baked goods.
Many of the company's products feature chocolate. For example, Atkins sells chocolate creme wafer crisps, chocolate chip cookies, chocolate shakes, and chocolate-covered treats. Meanwhile, OWYN makes many chocolate-based shakes and protein powders; many Quest bars, cookies, candy, and drinks feature chocolate.
Benefits and risks of investing in chocolate stocks
Investing in chocolate stocks has its pros and cons. Some of the benefits include:
- Steady growth: Demand for chocolate tends to be fairly stable and steadily growing.
- Income: Many publicly traded chocolate companies pay dividends.
On the other hand, some cons include:
- Changing consumer tastes: Chocolate companies need to innovate as consumer tastes change, including the current trends towards healthier options with less sugar.
- Cocoa prices: Cocoa costs can be volatile. While many chocolate companies aim to pass through cost inflation to customers by raising prices, many consumers have started to buy less chocolate in response to rapidly rising prices.
Related investing topics
Are chocolate stocks a good investment?
As part of the consumer staple sector of the stock market, chocolate isn't the highest-growth investment theme out there. However, the demand for chocolate and other sweets isn't going away anytime soon. In fact, chocolate sales are still rising as consumers in developing markets join the middle class, and previously out-of-reach products such as chocolate have become a more regular part of the grocery shopping list.
If gradual growth accompanied by dividend income is what you're after, these chocolate stocks could be right up your alley.
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