Consumers keep crunching on crackers, despite the fact that grocery costs continue to be high and food budgets limited. While sales in the category have been uneven, producers are confident the future will be bright, especially for cracker makers who deliver fun flavors, BFY benefits, and other attributes that appeal to cracker fans.

Market data
In general, crackers had a fairly decent year—some gains, some losses, but most subcategories and ranked companies sailed smooth seas for the 52-week period ending April 21, 2024, according to Circana (Chicago). For example, the catch-all “all other” crackers subcategory gained a modest 3.3% in dollar sales, hitting a total of $7.1 billion; however, unit sales were down 2.9% for the year. Mondelēz International brand Nabisco topped that column with a healthy $1.5 billion in sales (up 3% compared to the previous 12-month period). The biggest gains were enjoyed by Simple Mills (up 37.9% to $73.1 million), with the most notable loss chalked up to Blue Diamond (down 12.4% to $79.9 million).

The crackers with fillings subcategory performed slightly better, with a 10.7% increase bringing it to $1.5 billion for the period. Lance led the way with $455.9 million in sales (a 15.3% increase over the prior year), and the biggest gains in the column went to Munchies (up 45.7% to $48.6 million).

Tops in the saltines subcategory (which earned $648.2 million) was, once again, Nabisco. The brand raked in $399.6 million, which constitutes a tiny loss of 0.6% in dollar sales. Private-label saltine sales were second, with $169.6 million (a notable gain of 21% compared to the previous year.

Source: Circana OmniMarket™ Total Store View | Geography : Total US - Multi Outlet w/ C-Store (Grocery, Drug, Mass Market, Convenience, Military and Select Club & Dollar Retailers) | Time : Latest 52 Weeks Ending 04-21-24

Looking bacK
While salty snacks in general have seen some rough patches in recent years, many producers have had reason to be optimistic.

“In crackers, our declines are narrowing rapidly, thanks to increasing merchandising for Cheez-It and share gains by Club and Toasted,” comments Steve Cahillane, Kellanova president and CEO. “We are gaining traction, and we have more building blocks taking shape in Q2, when we pick up distribution on shelf resets and innovation launches, all supported by increased brand investment and merchandising activity.”

Jessica Waller—general manager for Away from Home with Kellanova—says convenience has been more important than ever to an on-the-go snacking public.

“With increasing consumer mobility, we are also starting to see acceleration in brands more oriented to on-the-go consumption and pack formats for immediate consumption,” she remarks. “This was a challenge in previous years, but as schedules have shifted to on-the-go we’re seeing the need for easily portable snacks increasing and getting back to pre-pandemic levels.”

Conventional crackers are still falling into shoppers’ carts, but products promising better-for-you labels and sustainability benefits are increasingly of interest. Anish Sheth, CEO of Redbud Brands—owner of crackers brand Cheddies—says sales have been strong for his brand, which offers a higher-than-average protein content, regenerative agriculture benefits, and other attributes with BFY appeal.

“Consumers are still interested in functional snacking, and our strong protein profile has really resonated,” Sheth remarks. “We’re excited to see that consumers are also becoming more aware of the sometimes toxic ingredients like dyes that are banned in other countries yet still exist in more conventional brands here in the U.S.”

Michael Finete, CEO of Mary’s Gone Crackers, says he has noticed consumers are more demanding than ever—and that is not necessarily a bad thing for cracker makers.

“The bar is much higher than in the past, and I hope this trend continues; consumers deserve to have the best products possible from companies that authentically share their values,” Finete notes. “I love uncompromising consumers because their purchasing decisions will support future growth of good companies and challenge the companies that do not deserve their trust.”

Waller says cracker producers looking to connect with consumers should offer variety, flavor, and fun.

“Consumers increasingly seek snacking experiences that add excitement to their day and bring joy to ordinary moments, so it’s essential for cracker brands to provide a diverse array of flavors and formats that cater to this desire for excitement,” she says, pointing toward flavor and texture innovations within the Cheez-It line.

Cracker producers have continued to face challenges common to other food firms. Category professionals such as Sheth likely won’t see such obstacles disappearing anytime soon.

“Supply chain disruptions are still affecting our category as we source premium ingredients,” Sheth says. “Volatility in pricing of raw materials, including corrugate, has been a constant challenge.”

Looking ahead
No one knows precisely what the future will bring in terms of consumers’ cracker cravings. However, according to Waller, producers can increase their chances of success by keeping tabs on trends.

“Our team is always analyzing flavor trends to create new and exciting snacking experiences for our fans,” she remarks. “We have several tools we utilize from our partners and internally to analyze consumer data and conversation among our target audiences which help us to determine what trending flavor out of the many that pop up throughout the year is the best to go after.”

Sheth says with crackers continuing to be a popular snack choice, and with sustained interest in healthful eating, the future looks bright for BFY players like Cheddies.

“We are very optimistic about overall snacking trends in the better-for-you space,” he remarks. “I think protein will continue to be important, as will a focus on processing and ingredients.”

Waller shares Sheth’s bright outlook for snacking in general, and for one of its most popular cracker brands specifically.

“At Kellanova, we are very optimistic about the cracker category,” Waller states. “The success of our Cheez-It brand continues to outperform year after year, and we do not doubt that our loyal fanbase will remain if not grow.”

Finete remarks that he’s “cautiously optimistic for 2024/25 and very optimistic for 2026 and beyond.” What’s more, he muses that the smaller companies playing in the cracker space just might have more reason for a rosy outlook.

“Large companies in our category will continue losing and falling behind in their appeal to consumers, while agile companies will continue to connect with consumers, resulting in increased variety and options,” he predicts.

Sheth says market watchers should keep an eye out for innovations the Cheddies team plans to introduce in the coming months: “We’re excited to offer new formats and flavors to capture both varied snacking occasions and emerging trends.” SF&WB

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