Cookie & Cracker Manufacturing Industry Profile

The US cookie and cracker manufacturing industry includes about 300 companies with combined annual revenue of about $11 billion. Major companies include Kraft's Nabisco subsidiary, Kellogg's US Snacks Division, Campbell Soup's Pepperidge Farms unit, Snyder's-Lance, Interbake Foods, and Otis Spunkmeyer. The industry is highly concentrated: the top 50 companies account for more than 90 percent of industry revenue.

The cookie and cracker manufacturing industry includes companies that make biscuits, cookies, crackers, and similar products. Companies that manufacture such food items as snack chips, fresh-baked cookies or breads, hard or soft pretzels, or refrigerated dough mixes are covered in separate industry profiles.

COMPETITIVE LANDSCAPE

Demand is driven by population growth, consumer tastes, and health considerations. The profitability of individual companies depends on efficient operations, effective marketing, and a strong sales force. Large companies have advantages in purchasing, distribution, and marketing. Small operations can compete effectively by manufacturing allergen- and sugar-free products, high-end cookies and crackers, or products containing unusual ingredients.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are cookies and related items (50 percent of revenue) and crackers and biscuits (40 percent). Popular cookies include chocolate chip, oatmeal, crème-filled, and sandwich varieties. Other products classified with cookies include toaster pastries, ice cream cones, and wafers for ice cream sandwiches. Major types of crackers include saltines and graham crackers. Other cracker products include melba toast, cracker meal and crumbs, and taco shells.

Cookie and cracker making typically begins by blending starter ...