Cookies’ flavor, diversity, and value are essential to their growth.
Sometimes people need a little encouragement. It can be a zesty new bite to make their day, or it might be a sweet favorite. A nation of snackers has made cookies their go-to food, and those who have been drawn to decadent goods are staying with them.
According to Lynn Dornblaser, director of innovation and insight at market research firm Mintel, “it’s important to keep in mind that cookies are a part of people’s lives.” They can be used as a special treat, an everyday product, or anything in between.
Additionally, more customers are showing a willingness to splurge, and cookies fit right in. Because packaged cookies, in particular, are more manageable in terms of portion size and are smaller in size, they may be regarded as a “permissible indulgence” in certain situations. They also serve as an inexpensive luxury in these tumultuous economic times.
Sales of cookies are rising, and they’re the ideal snack size—they’re also easily available and reasonably priced. According to Circana, center store cookie dollar sales increased 22% and unit sales increased 6% over the 52-week period that concluded on July 16. Unit sales increased 1.4% while dollar sales of perimeter cookies increased 13%. During that time, cookie sales exceeded $9.6 billion in total.According to Sally Lyons Wyatt, executive vice president and practice leader for client insights at Circana, “indulgence has outpaced the other three categories when we break down the categories of better-for-you, permissible indulgence, indulgence, and treating over the last three years.” “It hasn’t stopped as of yet. Now, it will eventually do so. But I continue to believe that excess is winning for the foreseeable future. And the reason for this is because it benefits from the macroeconomic headwinds. You’re worried about what will happen next—more prices, an increase in the price of petrol, etc. One major issue that many consumers may face is the imminent burden of student loan debt. Stress results from all of it. Customers are known to flock toward products that provide them a slight sense.
For the 52 weeks that concluded on July 16, dollar sales of crackers increased by 13%, but unit sales decreased by 4%. While consumers continue to enjoy their classic favorites, more and more healthful options are becoming available.
“There are pockets of growth when we look at some of what is winning within crackers,” Ms. Lyons Wyatt stated. “One of them concerns claims related to health and well-being. It may be whole grain, non-GMO, and gluten-free. When it comes to crackers, those have done rather well. Due to the excellent taste, they are gaining popularity among consumers outside of merely the population segment that requires it.
According to Ms. Lyons Wyatt, “peripheral cookies were actually outpacing center store; cookies struggled for a while trying to find their footing.” However, perimeter and center store cookies are both increasing in ’22. Even yet, the growth rate of perimeter cookies is less than that of center stores. The most popular cookie types, when it comes to cookies, are chocolate chip and sugar. Multipacks, in which you may get a dozen or two dozen and a range of different varieties, have also experienced growth.
According to Paul Stippich, director of marketing, Otis Spunkmeyer, a brand owned by Aspire Bakeries in Los Angeles, is seeing the majority of its growth in core flavors, particularly chocolate.
New flavors are starting to surface, particularly now that citrus qualities are beginning to appear in cookie recipes, according to Mr. Stippich. “The cookie industry still has vegetable- and protein-fortified ingredient niches, but consumers are more drawn to new and intriguing flavors than to these niches.”
According to Ms. Dornblaser, the most popular flavors are chocolate and vanilla, both of which are increasing in terms of the overall percentage of cookies released in the USA few intriguing flavors—olive oil, maple, purple yam, and popping candy—that are present in relatively small quantities of products but are growing significantly demonstrate the variety of cookies available,” she continued. Additionally, the number of limited-edition and seasonal flavors has increased.
Variety and desired value
Because cookies are a cheap, regular treat, consumers are looking for multipacks that provide more variety for less money. According to Circana, center-store multipack cookie dollar sales increased 44% and unit sales increased 40% in the 52 weeks that concluded on July 16. During the same period, perimeter assorted/multipack sales increased by 4.2% in units and approximately 14% in dollar sales.
In a June webinar hosted by the International Dairy Deli Bakery Association, Jonna Parker, principal II and fresh foods team lead at Circana, stated, “The (in-store) bakery offers so many different package sizes and the same thing for those snack cookies in the commercial aisle.” “Yes, there are platters and party supplies; you also have tiny pouches, take-along bags, and multiple sizes.”
“Everyone must enjoy the flavor of cake you have,” she remarked. “With cookies, it’s easier for someone to nibble than it is with cake, cupcakes, or brownies. You could put a few out.”
According to Mr. Stippich, the increase in perimeter sales is not shocking because consumer spending is driven by inflation.
“We all like to indulge in sweet treats, but high costs are discouraging customers from buying fine desserts and their favorite sweet options,” he stated. “Cookies will always be less expensive than other treats, but they’re still quite good. The idea behind multipacks of cookies is to extend your savings because you are purchasing more cookies at a reduced average cost.
The need for more nutritious
While most customers seem to be leaning toward indulgence, many are still searching for cookies with extra features like sustainability, dietary needs, or nutrition benefits.
According to a report published in July, global market research firm Technavio stated in June that the growing demand for healthy cookies and those with clean labels will be one of the major factors driving the cookie market over the next several years.
“As chronic diseases become more common, consumers are choosing healthier food options and are becoming more health-conscious,” according to Technavio. “Vendors are supplying a variety of innovative products with distinctive flavors, packaging, and safe ingredients. The demand for low-calorie cookies will rise as eating healthily becomes more important.
Launches are also being influenced by consumer interest in particular diets, such as paleo, vegan, and gluten-free diets, the spokesperson claimed. While “no bad stuff” refers to artificial flavors or colors, additives, or preservatives, as well as statements about no or low sugar, health is also an important consideration. Although they are some of the smallest claims, they are the ones that are expanding the quickest.
Additionally, Ms. Dornblaser stated that there is more space for wellness advantages including higher fiber, protein, and vitamin and mineral content.
“Take note that in 2022, slightly over 3% of product debuts had the low/no/reduced sugar claim—a 73% increase from 2020 statistics,” the spokesperson stated.
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According to Ms. Lyons Wyatt, “there are a few cracker flavors out there that do a lot of extra cheese, like extra cheddar, and have done quite well.” “Cinnamon-flavored crackers have done quite well and are on the sweeter side. Sweet and salty is a combination of little singles that have done very well.
Although unit sales are somewhat down, the popularity of charcuterie boards over the past several years has helped crackers. Producers might benefit from informing consumers about how well their crackers fit onto boards.
According to Ms. Lyons Wyatt, “charcuterie boards were what helped fuel crackers for a long time.” “I continue to believe that increasing crackers are a part of that. It would be important to remember that charcuterie and boards are still popular and to include your cracker in the occasion or social gathering.
Numerous companies are doing well in the cracker market, such as Campbell Soup Co., located in Camden, New Jersey, which said in late August that its Snacks division had had a “fantastic year.” The operating profit for Campbell’s Snacks increased by 24% to $640 million in the year that concluded on July 30. The company attributed its sales growth to cookies and crackers, namely to Lance sandwich crackers and Goldfish crackers.
President and CEO Mark A. Clouse stated, “I feel very good about how we’re competitively positioned as it relates to brands like Goldfish or even our Pepperidge Farm cookie business, which we see a great holiday ahead of us and really have some terrific innovation coming.”
Based in Austin, Texas Nufs produces gluten-free crackers with flavors such hot honey and everything bagel, as well as special editions like Hatch Chili. Jess and Kristine Tran, sisters, founded the business.
The company motto is “delicious by choice, gluten-free by chance,” according to chief operating officer Kristine Tran. “We receive calls from clients who exclaim, ‘I can’t believe I can eat crackers again.'” They enjoy it’s crispy, airy texture. They don’t perceive their food as being gluten-free.
“There’s a lot of innovation in the production process and ingredients used in gluten-free products, and better options are now available,” she said. “They are no longer willing to make trade-offs.”
Americans continue to reach for their tried-and-true favorites because they adore cookies and crackers. However, they are open to trying new things, and a lot of them are looking for healthier options. There are several ways for producers to satisfy their clients and keep them coming back for more.