KANSAS CITY, MO — Crisp, crunchy and infinitely snackable, crackers are seeing an uptick in innovation across the board. But while dollar sales in this category were $8.74 billion, a 9.5% sales change vs. a year ago, unit sales were 2.80 billion, down by -2.9% vs. a year ago.
Crackers attract a consumer segment that’s interested in not only snacking but also elements of health and wellness. This is particularly true when the crackers contain ingredients such as multigrain flours, legumes, ancient grains and protein. This element of versatility also keeps crackers a staple on many grocery lists. Purchases are strong among households of two or fewer people.
Generationally, this includes boomers, followed by Generation X and millennials, with more purchases made by larger households and those with an upper per capita income of at least $100,000.
But continuing inflationary pressures means snacking is taking a hit across the board as consumers ration their spending dollars. IRI’s report “Driving CPG Growth through an Economic Downturn” found that consumers are unfamiliar with this level of inflation in food and shelter, two basic necessities.
With close to 30% of income going toward home payments, consumers will increasingly trade down to essentials but also trade up to affordable luxuries when the opportunity arises. This includes seeking deals and convenience, as well as shopping value channels with a preference for smaller sizes and lower-priced brands.
Despite the difficulties from a perfect storm of supply chain disruption, rising inflation and considerable input costs, crackers are generating growth overall from a dollar perspective, despite declining in unit sales. A prevalence of claims, including callouts of calories per serving, vegan/vegetarian and high/specific protein amounts, support those dollar sales gains. Other claims still doing well from a dollar perspective include gluten-free, all-natural and whole grain, but these products have varying unit and volume growth. Omega, a minor claim, is gaining traction by touting support of healthy brains.
Smile-inducing Goldfish crackers, made by Norwalk, CT-based Pepperidge Farm, are also taking on a healthy hue with their Colors Cheddar crackers in red, red-orange, orange and green. Made with dried vegetable puree and juice concentrate, the Goldfish crackers contain one-third serving of tomatoes or carrots, with the carrot variety considered a good source of vitamin A.
During the fall season, crackers have also proven to be a game day MVP with products like football-shaped Town House Game Day Dippers made by Battle Creek, MI-based Kellogg Company. The dippable crackers are embossed with football-related seasonal patterns. Crostini and water crackers are also generating dollar growth but not from a unit perspective. The versatile crackers play a foundational role in charcuterie boards, which find favor at both casual and formal events.
Familiar snacking favorites in a dippable format are also making positive waves. Kellogg’s Club Crisps offer a wavy twist on Club Crackers in Sea Salt, Ranch and Sweet & Salty, the first Club sweet and savory flavor featuring caramelized sugar and a pop of salt. Kellogg is also finding success from the expansion of its crispy Cheez-It Snap’d line in Double Cheese, Cheddar Sour Cream & Onion, Jalapeño Jack and Barbecue, and new Scorchin’ Hot Cheddar varieties.
This story has been adapted from the October | Q4 2022 issue of Commercial Baking. Read the full story in the digital edition here.
