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 335 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
Source: Vertical IQ and Inforum

Recent Developments

Mar 20, 2024 - Payroll Costs Rose in 2023
  • Employment by cookie, cracker, pasta, and tortilla manufacturers grew 2.3% in December compared to a year ago after rising 4.2% in the previous annual comparison, according to the US Bureau of Labor Statistics. Employment by the industry ended 2023 at a record high and was up more than 20% from April 2020. Meanwhile, average wages at bakeries and tortilla manufacturers continued to climb ending 2023 at an all-time high of $22.34 per hour in December, a 10.4% year-over-year change, per BLS data. Producer prices were relatively flat in the second half of 2023 amid escalating payroll costs.
  • Cracker sales are benefitting from the rise in popularity of charcuterie boards, Snack Food & Wholesale Bakery reports. Cracker manufacturers are capitalizing on the trend by getting creative with flavors and formats, even adding cannabis to their recipes, according to SF&WB. Over the 52 weeks ending January 28, the crackers category increased by 7.1% from the same period last year, with $9.9 billion in overall sales, according to data from market research firm Circana. However, volume sales fell 4% over the same period, so the rise in cracker sales was due primarily to inflation. Broken out by subcategory: AO (all other) crackers rang up $7.1 billion of the total sales, an increase of 6.1%; crackers with fillings brought in $1.47 billion, a 13.9% uptick in sales; and saltine crackers posted sales of $651.7 million, up 8.7%.
  • 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 are struggling 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 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."
  • Some Oreo lovers suspect the maker of the chocolate creme-filled cookies of skimping on the filling, a charge manufacturer Mondelez denies, The Wall Street Journal reported in November. Oreo – the world’s best-selling cookie – is the latest example of a brand believed to be engaging in shrinkflation – the practice of reducing a product's amount or volume per unit while continuing to offer it at the same price. Distrust of big consumer brand companies has grown as inflation has required consumers to pay the same amount for less. On r/shrinkflation, a Reddit forum where consumers vent about perceived instances of shrinkflation, Oreo fans are complaining about the perceived lack of creme, according to WSJ. “Nowadays it’s barely even a squeeze of filling on the cookies,” wrote one poster. Whether or not the charge is warranted, consumers’ perception that Mondelez is skimping on the creme has the potential to tarnish the iconic Oreo brand.
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