Rising consumer spending and a resumption of outdoor activities are motivating food makers to develop products focused on changing consumer trends. While rising commodity costs remain a concern, prominent confectioners Mondelez (NASDAQ:MDLZ) (MNLZ) and Hershey (HSY) are expected to endure. But let’s find out which of these stocks is a better buy now. Read on.Mondelez International, Inc. (MDLZ) in Chicago and The Hershey Company (NYSE:HSY) in Hershey, Pa. are two well-known confectioners in the United States. MDLZ manufactures snack food and beverage products for consumers worldwide. HSY produces chocolate and sugar confectionery products, gum and mint refreshment products, and pantry items. Both companies sell their products to wholesalers, mass merchandisers, drug stores, convenience stores, and department stores.
As Americans resume outdoor activities, companies in the food industry are likely to witness rising sales amid rising consumer spending. To keep pace with changing consumer tastes, food makers are developing new products, including fat-free snacks and confectioneries, by collaborating with leading companies. This should help them offset rising commodity costs. The global confectionery market is expected to grow at a 4% CAGR to $21.46 billion by 2026.
While MDLZ gained 1.4% over the past month, HSY advanced 2.5%. HSY is a clear winner with 17.1% gains versus MDLZ’s 8.5% in terms of year-to-date performance. But, which of these stocks is a better pick now? Let’s find out.