KANSAS CITY, MO — Cookies serve as both a snack and dessert, so it’s not surprising that more than three in four consumers eat them, according to Mintel’s 2023 “US Cookies Market” report. The strength of the category creates opportunities for brands to focus on innovation and highlight cookies’ versatility as a way to expand eating occasions and drive volume growth.
A Balancing Act
While overall, cookies reported more than $11.43 billion in sales, units are flat, according to Circana data for the period ending July 14, 2024. Shoppers are bifurcating their purchases, creating an uptick in private label sales, as well as sales of brands that are considered premium and not mainstream.
“Consumers continue to shift their spending and consumption and find cookies as both an affordable snack and reward,” said Sally Lyons Wyatt, global executive VP and chief advisor, consumer goods and foodservice insights for Circana. “Companies need to find ways to drive optimal price and size mixtures across channels.”
With consumers still challenged by the overall economy, price and value influence purchasing decisions. As a result, cookies in the club channel saw a 5.7% dollar sales increase and 4.2% unit sales growth vs. a year ago.
“The value for these consumers is larger package sizes so they can feed the household at an affordable price,” Lyons Wyatt explained. “There is continued growth for perimeter cookies in mass channels across units, volume and dollar sales at 14.3 percent, 14.3 percent and 11.1 percent, respectively, which points toward both value and deal seekers.”
“The cookie category has seen new entrants that provide functional benefits like grain-free, gluten-free, 1 gram of sugar and 10 grams of protein.” — Sally Lyons Wyatt | global executive VP and chief advisor | Circana
Perimeter cookies is now a $3.20 billion dollar category, as compared to center store cookies, which are reporting a little more than $1 billion in dollar sales, according to the Circana data. Traditional cookies are driving growth within the perimeter category, with slight increases for both dollars and units.
“Perimeter cookies are traditionally fresh-baked, and the price gap between these cookies and center store cookies has lessened over the past couple of years,” Lyons Wyatt said. “As a result, consumers are able to indulge in more freshly baked cookies.”
Innovating as Better-For-You
Cookies play into permissible indulgences with cleaner labels, functional benefits and all-natural ingredients, Lyons Wyatt observed. Desirable attributes such as low-fat and low- or no-sugar ingredients appeal to health-conscious consumers.
“The cookie category has seen new entrants that provide functional benefits like grain-free, gluten-free, 1 gram of sugar and 10 grams of protein,” Lyons Wyatt said. “Cookies with no-sugar claims showed strong growth with 5.6 percent dollar, 3.6 percent unit and 3.9 percent volume sales increases.”
Similarly, cookies with gluten-free claims have seen dollar sales increase by 4.8%, unit sales by 5.1%, and volume sales by 2.2%.
This story has been adapted from the October | Q4 2024 issue of Commercial Baking. Read the full story in the digital edition here.
