LONDONNEW YORK, Aug 18 Reuters Chocolate makers like Hershey and Mondelez face tougher trading conditions over the next year as they attempt to pass on soaring cocoa costs to cashstrapped consumers who are cutting back.

The industry has enjoyed bumper profits over the past couple of years as demand for chocolate held up despite price hikes, but data seen by Reuters shows this trend may be breaking just as prices for cocoa hit 46yearhighs and sugar prices are near their highest in more than a decade.

Consumers in Europe and North America have already seen price increases of about 20 over the past two years and are starting to cut back on the amount of chocolate they buy, data pulled for Reuters by market researchers Nielsen shows.

Consumers are shopping around more, hoping to find deals, Mondelez CEO Dirk Van de Put said last month.

Cadburymaker Mondelez expects inflation in cocoa and sugar to continue. In response, the company said it is ensuring it is significantly hedged and continuing to drive productivity.

The increase in sugar and cocoa specifically is material, Mondelez CFO Luca Zaramella said in July. We are talking about most likely a 30plus percent increase if you look at the last 12 months, or even more, particularly in cocoa.

But after more than two years of higher prices, retailers are pushing back, analysts said, resulting in a battle that puts chocolatiers39; margins and profitability at risk.

One such battle resulted in Mondelez previously pulling…