Cookie and Cracker Manufacturers NAICS 311821

May 20, 2025 - Falling Prices

• Grocery prices fell in April for the first time this year, posting their biggest drop since 2020, Supermarket News reported citing the latest data from the US Bureau of Labor Statistics. Five of the six major grocery store group indexes dropped, led by a 12.7% decrease in egg prices, according to the BLS. The cereals and bakery products index dipped 0.5%, with cookie prices falling 0.4% versus March, while cracker prices fell 1% month over month and 0.8% year over year. April’s decline in grocery prices is welcome news for consumers sick of rising food prices. However, the impact of import tariffs has largely yet to be felt by consumers, 57% of whom say they’re very or extremely concerned about tariffs and their potential impact on food costs, according to US Grocery Shopper Trends 2025 by FM. In May, Walmart warned investors it will raise prices because of tariffs.
• Consumers looking to reduce their sugar intake are checking labels for natural sweeteners that don’t compromise on taste or texture, Snack Food & Wholesale Bakery (SF&WB) reports. So called “clean-label” sweeteners include monk fruit, stevia, and organic date syrup made from concentrated date juice. Organic date syrup contains fiber, natural sugars (such as glucose and fructose), vitamins, and minerals and can substitute for sugar in cookies, cakes, muffins, and bread with sweetness and moisture-retaining properties, according to SF&WB. Tagatose – a naturally occurring sugar found in various foods – is 90% as sweet as sucrose while containing 60% fewer calories. In addition, tagatose has a low glycemic index (GI of 3), a ketogenic certification, and is non-GMO Project Verified. A bulking sweetener, tagatose delivers both sweetness and textural properties. Cookie and cracker manufacturers that innovate to cut sugar without sacrificing taste and texture are likely to gain new customers.

• A rule proposed in the waning days of the Biden administration would require food manufacturers to display new labels on the front of packages flagging key nutrition information on salt, added sugar, and saturated fat, The Wall Street Journal reports. The rule proposed by the Food and Drug Administration in January is meant to help US consumers make healthier dietary choices. The new labels, dubbed a “nutrition info box,” would appear on the front of packages, according to WSJ. The agency currently requires most packaged foods to display a nutritional label, usually on the back or side of the box. The FDA said it would accept public comments on its proposal until May 16. If the rule is finalized, food manufacturers would be required to add the new labels to most packaged food products three to four years after it takes effect.
• Employment by cookie and cracker manufacturers fell 1.2% in March compared to a year ago, while average industry wages rose 3.3% over the same period to $22.49 per hour, according to the latest US Bureau of Labor Statistics data. With both employment and wages near historically high levels in March, payroll costs for cookie and cracker manufacturing companies remain high while producer prices are flat, pinching industry margins. Sales for the US cookie and cracker manufacturers industry are forecast to grow at a 2.27% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy, according to the Interindustry Economic Research Fund.