Cookie and 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, Lance, and Interbake Foods. The industry is highly concentrated: the top 50 companies account for over 90 percent of industry revenue.

The cookie and cracker manufacturing industry doesn't include companies that make tortilla, potato, or corn chips; fresh-baked cookies, pies, or breads; hard or soft pretzels; or refrigerated flour or dough mixes. Bakeries and snack foods manufacturers 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

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

Cookie and cracker making typically begins by blending starter ingredients like granulated sugar, shortening and ...