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 Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 347 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
Industry Forecast
Cookie and Cracker Manufacturers Industry Growth
Recent Developments
Jul 20, 2024 - Cookie Prices Fall
- According to the latest US Bureau of Labor Statistics data, producer prices for cookie and cracker manufacturers were flat in May compared to a year ago after rising by 4.1% in the previous annual comparison. Consumer prices for cookies dipped 0.3% in June versus May, while cracker, bread, and cracker products prices rose 0.2% month over month, per the BLS. Employment by the industry grew 2.6% in May year over year, while average wages at bakeries and tortilla manufacturers rose 3.7% over the same period.
- Sales of private-label products reached record-high market shares in both units and dollars in the first half of 2024 and are on track to top $250 billion for the year, according to Circana data released by the Private Label Manufacturers Association in June. Unit market share for private brands climbed to 22.9% of total unit volume, and dollar market share grew to 20.4% of total sales as of June 16, PLMA reported. Store brand sales for the first six months of 2024 totaled $121 billion, up 2.3% compared to a year ago. National brand sales grew at half that rate, up just 1.1%, over the same period. Private label growth was widespread throughout the store, with nine of the 10 store departments tracked by Circana posting private label dollar sales growth for the 52 weeks ending June 16, including general food, up 6.9%.
- Labor and other costs are driving how bakeries plan to invest this year, according to Baking & Snack’s 2024 Capital Spending Study. Bakers are focused on reducing reliance on labor and improving efficiencies to lower costs. “When asked what their biggest challenges were for the next 12 to 18 months, 73% of bakers said attracting and retaining a quality workforce,” said Kerwin Brown, president of Bakery Equipment Manufacturers and Allieds, which sponsored the study. The next top three concerns were labor costs, increased raw material costs, and inflationary pressures, all of which impact profitability. More than half of respondents (58%) reported that their companies would increase capital spending due to a lack of labor, followed by 52%, who said rising raw material costs would drive capital spending. Investments in facility expansions and new buildings are down compared to 2023, with most companies intending to use capital spending dollars on systems improvements (84%).
- The commercial baking industry is facing a workforce shortage that’s projected to lead to a deficit of as many as 53,500 jobs by 2030, according to the American Bakers Association (ABA). As in the broader manufacturing sector, commercial bakeries struggle to hire and retain skilled workers and face a wave of retirements as the workforce ages. According to the ABA report, demand for skilled workers in commercial baking will be concentrated in production, engineering and equipment maintenance, and shipping and distribution. By region, the 2030 projected commercial baking shortage is expected to be most severe in the Midwest (13,400 unfilled jobs), South (12,900 unfilled jobs), and West (short 10,300 jobs). Commenting on the projected workforce deficits, ABA CEO Eric Dell said, "The data speaks for itself and is a chasm that threatens the very foundation of our industry and requires immediate and collective action."
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