The world of chocolate is a vast and wondrous place, filled with a multitude of brands and products that cater to diverse tastes and preferences. Among the many players in this industry, two names stand out for their sheer size, popularity, and influence: Mars and Hershey. Both companies have been around for over a century, and their products are enjoyed by millions of people worldwide. But have you ever wondered which of these two chocolate giants is bigger? In this article, we’ll delve into the history, operations, and financials of Mars and Hershey to determine which company comes out on top.
A Brief History of Mars and Hershey
Before we dive into the numbers and comparisons, it’s essential to understand the origins and evolution of both companies.
Mars: A Humble Beginning
Mars, Incorporated was founded in 1911 by Frank C. Mars in Tacoma, Washington. Initially, the company produced chocolate candies in Mars’ kitchen, selling them to local merchants. In the 1920s, Mars introduced the Mar-O-Bar, which became a huge success. The company continued to grow, and in the 1930s, Mars introduced its iconic Snickers bar. Today, Mars is a global company with operations in over 80 countries, employing over 125,000 people.
Hershey: A Sweet Legacy
The Hershey Company was founded in 1894 by Milton S. Hershey in Lancaster, Pennsylvania. Hershey started his career as an apprentice to a confectioner and later worked for a chocolate company in New York City. In 1900, he introduced the first milk chocolate bar, which quickly gained popularity. The company continued to grow, and in the 1920s, Hershey introduced its iconic Kisses chocolates. Today, Hershey is a leading manufacturer of chocolate and non-chocolate confectionery products in North America.
Revenue and Market Share
When it comes to determining which company is bigger, revenue and market share are crucial indicators.
Mars’ Revenue and Market Share
Mars, Incorporated is a privately-held company, which means it doesn’t publicly disclose its financial statements. However, according to various reports and estimates, Mars’ annual revenue is around $40 billion. In terms of market share, Mars is the largest chocolate company in the world, with a global market share of around 14.4%.
Hershey’s Revenue and Market Share
The Hershey Company is a publicly-traded company, and its financial statements are publicly available. In 2020, Hershey’s revenue was around $8.1 billion. In terms of market share, Hershey is the largest chocolate company in North America, with a market share of around 30.6%.
Product Portfolio and Innovation
Both Mars and Hershey have a diverse range of products, but the scope and innovation of their portfolios differ significantly.
Mars’ Product Portfolio
Mars has a vast portfolio of brands, including:
- Chocolate: Snickers, M&M’s, Milky Way, 3 Musketeers, and Twix
- Petcare: Pedigree, Whiskas, and Royal Canin
- Food: Uncle Ben’s, Dolmio, and Masterfoods
- Drinks: Flavia and Klix
Mars is also known for its innovative products, such as the Mars Bar, which was the first chocolate bar to combine nougat, caramel, and almonds.
Hershey’s Product Portfolio
Hershey’s product portfolio is more focused on chocolate and confectionery products, including:
- Chocolate: Hershey’s Milk Chocolate, Hershey’s Dark Chocolate, and Hershey’s Cookies ‘n’ Creme
- Non-Chocolate: Reese’s Peanut Butter Cups, Almond Joy, and York Peppermint Patties
- Snacks: Krackel, Mr. Goodbar, and Skor
Hershey’s has also been innovating in recent years, introducing new products such as Hershey’s Gold and Reese’s Outrageous.
Global Presence and Operations
Both Mars and Hershey have a significant global presence, but the scope and scale of their operations differ.
Mars’ Global Presence
Mars has operations in over 80 countries, with a significant presence in Europe, Asia, and the Americas. The company has a large manufacturing footprint, with over 200 factories worldwide.
Hershey’s Global Presence
Hershey’s has operations in over 90 countries, with a significant presence in North America, Europe, and Asia. The company has a smaller manufacturing footprint compared to Mars, with around 20 factories worldwide.
Conclusion
So, who is bigger, Mars or Hershey? Based on revenue, market share, and global presence, Mars is the larger company. However, Hershey’s has a significant presence in North America and a strong portfolio of brands. Ultimately, both companies are leaders in the chocolate industry, and their products are enjoyed by millions of people worldwide.
| Company | Revenue (2020) | Market Share (2020) | Global Presence |
|---|---|---|---|
| Mars | $40 billion (estimated) | 14.4% (global) | Over 80 countries |
| Hershey’s | $8.1 billion | 30.6% (North America) | Over 90 countries |
In conclusion, while Mars is the larger company in terms of revenue and market share, Hershey’s has a significant presence in North America and a strong portfolio of brands. Both companies are leaders in the chocolate industry, and their products are enjoyed by millions of people worldwide.
What are the key differences between Mars and Hershey’s chocolate products?
Mars and Hershey’s are two of the largest chocolate manufacturers in the world, with distinct product offerings. Mars is known for its wide range of chocolate bars, including Snickers, M&M’s, and Milky Way, while Hershey’s is famous for its milk chocolate bars, Reese’s Peanut Butter Cups, and Kisses. Mars also has a stronger presence in the global market, with a wider distribution network and a more diverse product portfolio.
In terms of ingredients and taste, Mars and Hershey’s have different approaches. Mars is known for using a higher percentage of cocoa solids in its chocolate products, which gives them a richer and more intense flavor. Hershey’s, on the other hand, uses a sweeter and creamier recipe that appeals to a wider range of consumers. Additionally, Mars has a stronger focus on innovation, with new products and flavors being introduced regularly, while Hershey’s tends to stick to its classic recipes.
Which company has a larger market share in the global chocolate industry?
According to recent market research, Mars has a larger market share in the global chocolate industry, with around 14.4% of the market share, followed closely by Hershey’s with around 10.2%. Mars’ strong global presence, diverse product portfolio, and innovative marketing strategies have contributed to its leadership position in the market. Hershey’s, on the other hand, has a stronger presence in the North American market, but lags behind Mars in terms of global reach and market share.
It’s worth noting that the global chocolate market is highly competitive, with many other players, including Nestle, Lindt, and Ferrero, vying for market share. However, Mars and Hershey’s remain two of the largest and most recognizable chocolate brands in the world, with a loyal customer base and a wide range of products that appeal to different tastes and preferences.
How do Mars and Hershey’s approach sustainability and social responsibility?
Both Mars and Hershey’s have made significant commitments to sustainability and social responsibility in recent years. Mars has set ambitious targets to reduce its greenhouse gas emissions, water usage, and waste, and has implemented sustainable sourcing practices for its cocoa and other ingredients. Hershey’s has also made commitments to reduce its environmental impact, including a goal to use 100% sustainable cocoa by 2025.
In terms of social responsibility, both companies have programs in place to support cocoa farmers and their communities, including initiatives to improve farmer livelihoods, promote child labor-free cocoa, and support women’s empowerment. Mars has also launched a number of initiatives to promote healthy eating and reduce sugar content in its products, while Hershey’s has focused on supporting local communities and promoting diversity and inclusion in its workforce.
What are the key factors that contribute to the success of Mars and Hershey’s?
Several factors contribute to the success of Mars and Hershey’s, including their strong brand recognition, wide range of products, and effective marketing strategies. Both companies have invested heavily in building their brands and creating memorable advertising campaigns that resonate with consumers. They also have a strong presence in retail stores and online, making their products widely available to consumers.
Another key factor is their ability to innovate and adapt to changing consumer preferences. Both companies have introduced new products and flavors in recent years, such as Mars’ Dove chocolate and Hershey’s Cookies ‘n’ Creme bars. They have also expanded their product portfolios through acquisitions, such as Mars’ purchase of Wrigley’s gum and Hershey’s acquisition of Brookside Foods.
How do Mars and Hershey’s approach innovation and product development?
Mars and Hershey’s have different approaches to innovation and product development. Mars has a more decentralized approach, with innovation teams located in different regions and countries. This allows the company to tap into local tastes and preferences and develop products that are tailored to specific markets. Hershey’s, on the other hand, has a more centralized approach, with a dedicated innovation team that develops new products and flavors.
Both companies invest heavily in research and development, with a focus on creating new and exciting products that meet changing consumer preferences. They also use consumer insights and market research to inform their product development decisions and ensure that their products meet consumer needs and expectations. Additionally, both companies have partnerships with external innovation partners, such as startups and universities, to stay ahead of the curve and identify new trends and technologies.
What are the biggest challenges facing Mars and Hershey’s in the global chocolate market?
One of the biggest challenges facing Mars and Hershey’s is the increasing demand for sustainable and responsibly sourced chocolate. Consumers are becoming more aware of the environmental and social impacts of their purchasing decisions, and are seeking out products that meet high standards for sustainability and social responsibility. Both companies are responding to this trend by investing in sustainable sourcing practices and reducing their environmental impact.
Another challenge is the rise of health-conscious consumers, who are seeking out products that are lower in sugar and calories. Both Mars and Hershey’s are responding to this trend by introducing new products that are lower in sugar and calories, such as Mars’ Dove dark chocolate and Hershey’s Sugar Free chocolate. Additionally, both companies are facing increased competition from smaller, artisanal chocolate makers who are offering unique and high-quality products that appeal to consumers who are seeking out new and exciting flavors.
What is the future outlook for Mars and Hershey’s in the global chocolate market?
The future outlook for Mars and Hershey’s is positive, with both companies well-positioned to continue to grow and evolve in the global chocolate market. Mars is expected to continue to lead the market in terms of sales and market share, driven by its strong brand portfolio and innovative marketing strategies. Hershey’s is also expected to continue to grow, driven by its strong presence in the North American market and its expanding portfolio of brands.
Both companies are expected to continue to invest in sustainability and social responsibility initiatives, as well as innovation and product development. They will also need to respond to changing consumer preferences, such as the demand for sustainable and healthy products. Additionally, both companies will need to navigate the challenges of a rapidly changing global market, including fluctuations in commodity prices and changing regulatory environments.