The Future of Cookies

The cookies category has evolved in complexity and perception. Many consumers have been conditioned since childhood to view cookies as sweet indulgent treats and in adulthood resolved to give them up in the interest of better health. Yet the grip that snack manufacturers have on the consumer psyche is strong given the recent explosion of better-for-you snacks and treats. While some brands are fully invested in delivering healthier sweets options— some of them crossing over from adjacent categories like crackers—others continue to cater to the nostalgia for unadulterated decadence with the expectation that the consumer knows how to incorporate their products into a well-balanced, sensible diet.

Consumers, of course, are not monoliths. Randy Adams with Huck’s Market convenience stores, has more than 120 locations in Illinois, Indiana, Missouri, Kentucky and Tennessee, said so far, demand for items like gluten-free or vegan cookies has not reached its marketing area. “I think this might be stronger in supermarkets, but in the c-store environment, it simply isn’t a driving force.”

Huck’s locations do merchandise better-for-you cookie options in a separate area than its traditional cookie offerings, and products like Lenny & Larry’s, Quest, Whey2Be seem to be doing well, Adams said. “The traditional cookies still outperform the better-for-you, but the gap is closing,” he said.

In both cases, however, growth has been stagnant, he said. “Right now, the traditional cookie brands are not growing, and the profit they generate per store is low,” Adams said. “I have tried a variety of lower retail items to try to bring customers back to the category but have not had much success. Our snack cake section is so strong that I believe it is taking everyday sales away from the cookie category.”

And Hostess Brands is making sure it continues to supply those snack cake innovations that live outside of the better-for-you world. The company announced its Kazbars, a first-of-its-kind candy-bar-inspired innovation within the snack cakes market last month. Described as combining layers of soft chocolate cake, crème, candy crunch and caramel or smooth chocolate fudge, “the bars are covered in a rich chocolate-flavored coating and topped with a delightful drizzle for an afternoon treat the whole family will enjoy.”

"We know that consumers are craving multitextured snacks—and the variety of creamy, crunchy and rich layers in our new Kazbars will make every snacking experience a more joy-filled one," said Christopher Balach, General Manager of Hostess Brands, LLC. "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."

While Hostess products are hard to ignore, C-store owners might have a better chance of catching a shopper’s eye with cookie brand Muddy Bites, which banks on consumers’ strong sense of nostalgia when seeking sweet snacks and specifically, the desire to relive the sensation of enjoying the bottom bite of a sundae cone. “Our plan is to bring continued disruption into the category by creating unique platforms and flavors,” President Michael Parisi said. “In particular, we are focused on nostalgic indulgent treats where we feel we can put a new fresh spin on things.”

Muddy Bites’ Waffle Cone Snacks are available in milk, dark and white chocolate flavors, and Parisi last summer said chocolate consumption continues to propel the adjacent chocolate confections category forward. “The chocolate confection category remains strong, driven by Millennials and Gen Z who are consuming more chocolate in 2022 indicating continued excitement and momentum for the category in 2023.”

Further, consumers are coming around to achieving a sense of balance when it comes to more indulgent snacks, he said. “Consumers are changing their mentality about indulgence,” he said. “They are more open to ‘treating’ themselves as part of a balanced lifestyle. New flavors and platforms are going to continue to drive people to this category.”

While this resonates with a certain segment of consumers, better-for-you snack manufacturers on the crackers and savory snacks side are nonetheless testing the waters with sweets offerings of their own. Last year, Mary’s Gone Crackers jumped into the better-for-you cookie space with its Mary’s Gone Kookies graham-style snacks.

“Our mission is to be not just a cracker company but to be a better-for-you snack,” Director of Marketing Carla King said. “That was one of the things that led us into the cookies space. We’ve focused with our marketing and sales, where can we go with keeping the promises of organic and gluten-free and vegan as well. To us, we see a lot of opportunity and upsale and dipping our toe into the water. We have a lot of things coming once we get increased capacity. It’s rather exciting.”

Meanwhile, Effie’s Homemade’s biscuits—described as “more refined than a cookie, more dynamic than a cracker” and originally known as an oatcake— also fill a niche for consumers looking for a combination of nostalgia and flavor. “Our original Oatcakes remain the top seller,” Marketing Manager Mallory Amory shared last summer. “Their simplicity in flavor and ingredients is reminiscent of a favorite family recipe —which it is—and makes it a consumer favorite.”

Last year, Effie’s Homemade’s Walnut Biscuits received a sofi Award for best new product in the cookie and snack bar category. “So far six of our eight flavors have won a sofi Award,” Amory said. “We’re going for all eight .”

The sweet-salty nature of these biscuits may stump retailers in terms of the best places to display them in store. “Effie’s biscuits are unique and perform best when placed in specialty cheese and deli departments,” Amory suggested. “They provide excellent cross-merchandising potential, complementing any cracker set versus competing with existing brands. As premium products, the line drives incremental sales and delivers solid margins to our retail partners.”