Cookie and Cracker Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 316 cookie and cracker manufacturers in the US produce crackers and biscuits, cookies, wafers, and ice cream cones. The industry is comprised of independent manufacturers that produce and sell their own brands, and contract manufacturers that produce and package products for customers under the customer’s brand(s).

Changing Consumer Diets

Demand for cookies and crackers can change with consumer diets and fads.

Food Safety Regulations

Like other food production operations, cookie and cracker manufacturers are subject to regulations regarding food handling, storage, contamination, allergens and package labeling.

Industry size & Structure

A typical cookie and cracker manufacturer operates out of a single location, employs fewer than 20 workers, and generates about $34 million annually.

    • The cookie and cracker manufacturing industry consists of about 316 companies which employ about 30,300 workers and generate about $11 billion annually.
    • About 87% of firms have just one production facility. About 46 firms are large, employing 100 or more workers each.
    • The industry is highly concentrated with the 8 largest firms representing 69% of revenue.
    • Customer industries include food distributors, grocery stores, mass merchandisers, drug and discount stores, restaurants, caterers and snack shops.
    • Large companies include Mondelez International (Oreo, Ritz, Nabisco), Kellogg’s (Town House), Campbell’s (Pepperidge Farms, Snyder’s Lance, Archway) and Nestle (Toll House). Some large manufacturers are highly diversified and produce a wide variety of foods and beverages in addition to cookies and crackers.
    • Contract manufacturers include Hearthside Foods, Western Baking Corporation, Oakhouse Bakery, and Richmond Baking.
                                    Industry Forecast
                                    Cookie and Cracker Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    May 14, 2022 - Wheat Prices Rise on War in Ukraine
                                    • Russia’s war in Ukraine has impacted the global supply of key macro ingredients like wheat used in cookie and cracker manufacturing. With Russia and Ukraine making up about a third of the global wheat supply, the invasion has pushed wheat prices to record highs, with little relief in sight, TraceGrain’s Gary Iles told Snack Food & Wholesale Bakery in May. “The most optimistic estimates suggest we’ll be looking at another six to 12 months of supply chain shortages. But it could easily take twice that long, especially if manufacturers fail to take a more proactive approach to diversify their pool of suppliers,” Iles said. Chicago wheat futures were trading around the $11.1 per bushel level in May, not far off a 14-year high of $12.5 hit in March as poor weather conditions and export restrictions heightened supply concerns.
                                    • The price of food rose 0.9% in April 2022 versus the previous month, the 17th consecutive monthly increase, according to The New York Times. Droughts in some parts of the world have reduced crops, while the war between Russia and Ukraine, two significant commodity producers, has led to spiraling prices for wheat, sunflower oil and other products. Prices for dairy, eggs and cereals – used in cookie and cracker manufacturing – soared in April driven by an outbreak of bird flu in the US, the rising cost of fuel and fertilizer, labor shortages and other factors, The wholesale cost for a dozen eggs reached $2.50 on April 13, rising 92.3% from March’s figures and 160.3% from the prior year, according to Food Institute analysis of USDA data.
                                    • The global cookie market is forecast to grow 5.3% annually through 2027, according to Digital Journal. Sandwich cookies are expected to see the greatest consumption growth in North America with flavors like buttercream, chocolate, and peanut butter boosting sales. The cookie market tends to rise and fall in tandem with disposable income.
                                    • The prices paid by consumers for cookies increased 6.6% year over year in April 2022, while cracker and bread prices jumped 14.1%. Cookie and cracker manufacturers’ prices were flat in April, up just 0.1%, indicating that manufacturers may have been able to pass at least some of their higher input costs through the supply chain.
                                    • Consumers are concerned more about sugar intact than salt, according to a survey in March 2022. Sugar intake rated in the top three concerns while sodium ranked sixth. However, 83% prioritized taste over everything else when choosing what to eat.
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