The Hershey Company (HSY) manufactures and sells confectionery products and pantry items internationally. The company operates through three segments: North America Confectionery; North America Salty Snacks; and International. On the other hand, Mondelez International, Inc. (MDLZ) manufactures, markets, and sells snack food and beverage products. It provides biscuits, chocolates, candies, cheese, and powdered beverage products.
Amid the ongoing Russia-Ukraine war, the cost of food in the United States increased by 10.1% in May 2022, according to the U.S. Bureau of Labor Statistics. The critical reasons for rising food prices are supply chain disruptions, heavy demand for food commodities, and high energy prices. As these factors are expected to keep driving food prices in the near term, the food industry is expected to thrive. According to Valuates Reports, the global packaged food market is expected to grow at a CAGR of 5.2% by 2030. Therefore, both HSY and MDLZ should benefit.
