“It’s not that consumers aren’t purchasing snack cakes,” she said. “It’s that consumers must make a choice between purchasing snack cakes and other grocery essentials.”

Because of its convenience and price point, snack cakes index well among two-person households (53%) and middle-income consumers (40%) with stronger saturation among boomers and Generation X. Brand recognition in the category is particularly strong with the top five forming 75% of dollar sales followed by some private label options. A report published by Statista in June found that 74.2 million Americans ate Little Debbie snack cakes in 2020, according to data from a November 2020 survey.

Faced with having less spending money, consumers are having to make more strategic choices. That translates into fierce competition for those discretionary dollars in stores and online. The donut category, one of the biggest snack cake competitors, is growing. Seeking out different dayparts to serve, donut producers have turned to innovation to capture new audiences.

For example, donuts with caffeine offer applications during multiple dayparts. Another surprising competitor, rice popcorn cakes have seen growth in part because of its flavor range and healthier profile. But while some consumers intend to make healthier choices, this is not the majority of buyers in this category. This is evidenced by limited growth regarding claims such as calories per serving, low-fat and plant-based.