The pretzels category is very much showing its fun side lately. Product producers have been getting creative, innovating with interesting flavors, different shapes, and even grain- and gluten-free products.

Market data
The pretzel category has overall shown growth, according to Circana (Chicago) data from the past 52 weeks, ending on April 21, 2024. The category as a whole rose 6.4%, to $2.4 billion in sales.

Snyder’s of Hanover took the lead, with $629.3 million in sales but with a minor 0.3% loss. The private-label sector brought in $470.6 million, with a healthy 14.8% increase, and Dot’s Homestyle Pretzels (owned by Hershey), brought in $375.1 million, with a 14.7% uptick. Another to watch in the category is Quinn, with a modest $18 million in sales but an impressive 51.8% in growth.

In the chocolate-covered salted snack subcategory, which took in $461.37 million and had a modest .5% in sales, Flipz (a Pladis brand) snagged $124 million in sales, a 6.6% uptick. General Mills’ Chex Mix brought in $90.2 million, but lost 3.1% in sales; private label came in third, with $60 million in sales but a small .9% loss.

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
“For us, as a brand that specializes in better-for-you pretzels, the biggest growth was the product that delivers more health claims, like Crisp Power, which will be launched at the end of the year,” says Gilad Zilberberg, CEO, Crisp Power.

“We see trends of consumers that are looking for products that are healthier with higher nutritional values such as protein, and further strengthening the world of plant-based. Regarding flavors, we specifically recognize in our part a higher demand for products that do not contain artificial colors,” he notes.

Zilberberg also mentioned labor challenges continue to plague producers, creating a snowball effect.

“We are faced with manpower challenges, which cause a significant wage increase, which motivate us to the transition of automation that replaces humans,” he relates. “On the other hand, the significant increase in interest rates means that the price of money is much more expensive, and the return of investment is longer.”

Justin Spannuth, vice president/chief operating officer, Unique Snacks, says that pretzels have seen a significant increase in sales, mostly driven by topical flavors but also due to the significantly higher demand for premium private-label products .

“Consumers have found a desire for more flavor and higher quality in their pretzel preferences. Premium brands like Unique Snacks have benefited from these consumer preferences. We offer a premium pretzel made with fewer ingredients that provide more flavor. Innovation in flavors on all product types has also been a trend, most recently with brands finding what ethnic flavor niches will work here in the U.S.,” he elaborates. “All categories of snacks are seeing innovation in the better-for-you, sustainable ingredients, and functional ingredient space. Things like grain-free, upcycling, and protein-enriched have led to most of those innovations.”

Additionally, Spannuth echoed Zilberberg’s concerns about battling cost challenges.’

“Our costs are real issues and need to be addressed at many levels, but we are doing everything we can with the controls that we have to offer consumers a premium snack and strong value,” he adds.

Natalie Perera, director of pretzels, The Hershey Company, says its Dot’s Homestyle Pretzels brand continues to experience strong growth.

“Dot’s Homestyle Pretzels appeals to a growing number of consumers who are looking for a satiating snack with bold flavors. Much of the brand’s recent growth has been driven by brand awareness through improved distribution and merchandising programs, including adding Dot’s Homestyle Pretzels to Hershey’s NCAA March Madness partnership,” she comments.

“As an emerging brand, Dot’s Homestyle Pretzels has the opportunity to increase household penetration. We also have great potential to expand our footprint and adapt our supply chain to increase capacity. With the acquisitions of Dot’s Homestyle Pretzels and Pretzel’s Inc., Hershey gained both a fast-growing pretzel brand and a powerful manufacturing network. Becoming a maker of salty snacks allowed us to deepen our presence in various snacking categories,” Perera elaborates.

Looking forward
Spannuth says that the snacking category is evolving, through both innovation of ingredient types with BFY and sustainability in mind, but it’s also continuing to evolve in what is considered a “snack.”

“Snacking events have significantly changed over the last 10 years, as people are finding new and different product types to eat between meals and on-the-go, which is also one of the main driving forces for the functional ingredient product space,” he notes. “[In addition,] the next few years will be a consistent process of finding the best ways to automate and utilize software technologies to help reduce the ultimate retail cost to the consumer.”

The brand aims to innovate to provide consumers with new and additional snacking options, he says. “Right now, we are working to fill a white space we have seen open up and we are developing a product line extension. Unfortunately, it is too early to discuss this new product line and its goal to fill the space, but it should be available by Q3 2024.”

Perera says she believes over the next year value will continue to be an important consideration for consumers. “We are expanding our price pack architecture for Dot’s Homestyle Pretzels to address specific occasions and reach more consumers with the right pack types on the shelf,” she says. “We know consumers are also seeking variety, either from their favorite brand or to discover new brands through innovation.”

Britton also advises to expect a range of innovations in the Floura line, which could include new flavors as well as additional products.

“We have SO many items lined up for future development with our superfiber powder and other beneficial nutrient products,” she says. “We decided to start with a nutrition bar because we're working with fruit pastes and fibers that are well suited for the bar format. We also have other products in development with a range of nutrition profiles designed to meet a variety of consumer needs. We’re not stopping at the Floura Bar; we’re only getting started. Watch us bloom!” SF&WB

NEW PRETZELS on snackandbakery.com