Create something new

Regardless whether it is a cookie or a cracker, taste reigns supreme. Consumers are increasingly looking for innovative and unique flavor profiles to excite and please their palates, states “Crackers: U.S. Market Trends,” a December 2013 report from the Packaged Facts division of Rockville, Md.-based MarketResearch.com.

When it comes to crackers, bolder is better for getting a consumer’s attention. Packaged Facts gives the example of a national brand of crackers that recently introduced “Zesty Lime and Chili” and “Tangy Parmesan Garlic” flavor combinations. While retailers have garnered significant mass-market share in traditional cracker categories — think saltines, graham crackers and breadsticks — they have gained a “miniscule” market share in the categories in which all of the innovation is occurring, the market research firm adds. Therefore, retailers interested in boosting store brand cracker sales might want to consider updating the flavor profiles they offer to be more modern and interesting to their consumers.

And when it comes to cookies, today’s consumer wants her cookie to be more indulgent than ever before, says global market research firm Mintel in its March 2013 report titled “Cookies and Cookie Bars — US,” With consumers indulging less frequently, due to a greater emphasis on their health, each cookie needs to be 100 percent worth the indulgence, the company adds.

One way to capitalize on this indulgence trend is with a cookie that uses a dessert profile such as cheesecake, carrot cake or dulce de leche, states Frederic Langlois, senior vice president of private label sales, innovation, R&D, marketing and communications for Leclerc Foods, Quebec City, Quebec. This type of dessert profile is something that is currently trending in both the United States and in Canada and could be a big opportunity for retailers, he adds.

“Customers are always intrigued by the unusual and are often attracted to the idea of getting something special,” states Juanita Joachim, vice president of product development and marketing for the East American Group, Longwood, Fla. “Focus on what makes your brand of cookies/crackers unique. Emphasize the originality of your inventory.”

Provide healthful options

Besides seeking out tasty options, consumers are looking for cookies and crackers that are healthful. According to Mintel’s report, sales of better-for-you cookies increased nearly 20 percent to reach more than $900 million between March 2011 and March 2013, and overtook premium cookies as the second-best-selling market. Contributing to this growth is the consumer’s desire to indulge, but to do so responsibly.

What do consumers want when they look for a healthful cookie? According to “Packaged Sweet Baked Snacks and Desserts: U.S. Market Trends” a December 2013 report from Packaged Facts, consumers want reduced sugar, sodium and fat and the elimination of high-fructose corn syrup and trans fats. And they believe that cookies that use organic ingredients, are gluten-free, have high levels of fiber and/or contain whole-wheat/grain ingredients are likely to be more healthful, the 
company adds.

Consumers also want short “clean” labels with ingredients they can pronounce and could find in their pantry at home, Langlois says. Retailers could take advantage of this consumer demand by creating and/or marketing specific cookies as more healthful alternatives to other more indulgent treats, Mintel adds.

Consumption of healthful crackers has also increased, Packaged Facts states in its cracker report, with the number of households “most often consuming wheat crackers” increasing 19 percent between the years 2004 and 2013; oat cracker consumption increased 39 percent during this same time period. Research from the Netherlands-based Innova Market Insights found that 80 percent of new cracker launches in the United States now are based on a health platform.

One reason for this growth could be that crackers have repositioned themselves to be an “exciting and healthy alternative” to traditional salty snacks such as chips, popcorn and pretzels, Packaged Facts says.

“Consumers are reading the ingredient decks and are not purchasing products that are less than ‘all-natural’ or that contain HFCs or hydrogenated oils,” says Bob Abramowitz, president and CEO of Westminster Cracker Co., Rutland, Vt.

He adds that retailers should be aware of current health trends in crackers that will only increase in popularity, including non-GMO and/or gluten-free ingredients, whole grains, no preservatives and lower sodium counts.

Be convenient

As busy consumers, especially millennials, increasingly leave behind the time-consuming “three square meals per day” mentality in favor of snacking, mini-meals and on-the-go eating, convenient packaging will become even more important, states Esther Palevsky, analyst for the Freedonia Group Inc., Cleveland.

Laurent-Xavier Gilbert, vice president of innovation and marketing for Leclerc Foods, agrees. Portability — or “cookies-to-go,” especially portable breakfast cookies such as Kraft’s BelVita or Kellogg’s To-Go biscuits — is a new trend retailers should be aware of, he says.

“These breakfast cookies are a direct answer to our really hectic lifestyles where people often don’t make the time to eat a full breakfast,” he adds. “In Europe, this is a very big category, and while it is relatively new to the U.S., all of the major players have a version of it out there right now.”

Additionally, consumers view convenient packaging, something that is easy to use and resealable, as a big plus.

“National brands typically have not taken advantage of packaging options that are both easy to open and easy to close so as to maintain freshness. This could be a big opportunity for innovation among private labels,” Langlois says.