Americans of a certain age likely associate bakery snacks with lunchboxes, unwrapped and enjoyed at school, near the tail end of their midday meal. However, modern consumers now are enjoying such baked treats outside of classrooms—at home, on the road, at work—and at all times of day.

Market data

According to data from Circana OmniMarket Integrated Fresh, Chicago, for the 52 weeks ending March 26, 2023, center store snack cakes saw sales increase by 15.3%, up to $2.2 billion. Most subcategories also increased. The biggest percentage jump landed in the roll snack cakes column, with an increase of 26.1% compared to the previous 12-month period bringing sales to $473.1 million. Another increase came to bar and finger snack cakes, which climbed by 16.5% to $1.4 billion. However, snack cakes aimed at Latino consumers saw a decrease of 16%, to $367,505 in sales for the period.

In the bar and finger snack cakes column, McKee Foods (owner of the Little Debbie brand) reigned, with $469.4 million in sales; Hostess Brands (up just 2.3% to $305.4 million) and Grupo Bimbo (up 17.1% to $142 million) were close behind. The biggest increase: Mondelēz International, who rocketed up 357.4% to $66.7 million.

Sales figures indicate consumers also increasingly reached for center store mini muffins during their shopping trips; the subcategory increased 12.3% to a sales level of $854.1 million for the 12-month period. Grupo Bimbo took first place in mini muffins, with an increase of 14.3% and sales of $663.5 million. Private label mini muffins also saw a notable increase—they climbed 83.5% compared to the previous year, for a sales figure of $15.1 million.

Looking back

According to Paul Stippich, marketing director with Aspire Bakeries (parent company of Otis Spunkmeyer), bakery snacks call to hungry consumers at all hours.

“Snack cakes present a broad daypart for operators to satisfy their customers, starting with breakfast and extending through all snacking occasions throughout the day,” says Stippich. “Otis Spunkmeyer has identified the leading preferred flavors for snack cakes, and lemon/citrus flavors are at the top of the list. Our Otis Spunkmeyer IW Lemon Loaf Cake with Icing provides a great opportunity for operators to leverage the popularity of lemon flavor for all-day snacking.”

Snack cakes also have increasingly appealed to producers, Stippich remarks.

“Since the COVID-19 pandemic began, there has been increased consumer desire for individually wrapped snacking options that provide safety reassurance, and operator demand for offerings that require less labor and provide higher profitability,” he adds.

Product launches in the category include sweet, indulgent treats; and bigger multi-unit packs for sharing with friends and family. Little Debbie introduced a Big Pack carton of its longtime favorite Zebra Cakes, containing six large, individually wrapped filled and striped cakes. Hostess Brands’ recent bakery snack introductions include Kazbars, individually wrapped bars that consist of multiple layers and a blend of textures.

"We know that consumers are craving multi-textured snacks, and the variety of creamy, crunchy, and rich layers in our new Kazbars will make every snacking experience a more joy-filled one," says Christopher Balach, general manager, Hostess Brands. "This new kind of snack delivers the familiar, moist Hostess cake consumers know and love with a new, delicious fusion of layers and textures. The snack has performed strongly with consumers throughout product testing and we're excited to see that translate in the marketplace."

Looking forward

Tina Lambert (vice president for the marketing center of excellence, Hostess Brands) advises that diving into what makes customers tick is key to developing new products in the category. She advises that Hostess’s work in understanding consumers and gleaning insights is key to coming up with the company’s new snack offerings.

“We are able to spark joy for these consumers because we listen to them. We stay close to their needs, and we create great-tasting snacks they love. From our research, we know consumers are snacking their way through the day—70% of consumers are eating at least two snacks per day, and 45% of them are eating more than three. Additionally, 84% of millennial parents are looking for new snack options for their family,” she reveals.

Lambert adds that the company’s consumer connection efforts have led to determining the fastest-growing snacking occasions:

• Morning Sweet Start, an extension of the traditional breakfast time
• Lunchbox, for consumers eating on-the-go midday
• Afternoon Reward, after-school, or –work treats
• Immediate Consumption, single-serve and on-the-go
• Afternoon Sharing, involving snack time with family and friends

Penny Patterson-Smith, senior vice president of snacking with Flowers Foods says COVID’s arrival brought a surge in snacking occasions. Three years later, she observes, they continue to remain high and likely will continue; data shows about three-quarters of snackers engage in the habit several times a day.

“While the growth has leveled off somewhat from the peak of the pandemic, it is still growing. Offering snacks that can be enjoyed across multiple dayparts is a key to capitalizing on this trend. Satisfying hunger and giving oneself a treat or reward are the highest motivators for consumers to snack. That’s why we focus on creating snack solutions to meet these needs,” Patterson-Smith says.

Online food shopping, which also has increased since the start of the pandemic, is a trend that is likely to continue, she adds.

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Little Debbie Strawberry Swiss Rolls

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