U.S. Biscuits Market Size, Share & Trends Analysis Report By Type, By Product (Cookies, Filled Biscuits, Crackers, Wafers), By Source, By Distribution Channel, Competitive Landscape And Segment Forecasts, 2018 - 2025

Industry Insights

The U.S. biscuits market was estimated at USD 14.64 billion in 2016 and is anticipated to grow over the coming years. Evolving tastes of consumers and impulsive purchases are among key drivers for this market. Cookies and crackers are mostly preferred and consumed regularly by people of all age groups in the U.S. To cater to a wide range of customers, biscuits are customized as per their needs. For instance, low-sugar & calorie multigrain biscuits for health-conscious customers, fruit-flavored cookies for children, and zero sugar variants for diabetic patients.

Product innovation is among key factors contributing to the growth and manufacturers are reformulating their products and developing higher-margin convenience formats to meet the demands of health-orientated consumers. For instance, Mondelez’s belVita that established a new trend in the breakfast biscuit market and gained the title of on-the-go snacks with nutritional credentials.

Some of the cookie manufacturers are developing gourmet cookies, such as handmade biscuits, which are believed to be rich in taste and popular among high-end consumers. Following a shift toward trans-fat-free, whole grain, and low-fat cookies, the cookies category is becoming the most preferred snack among consumers. Smaller manufacturers are likely to find opportunities to enter the market as the low-calorie and fat-free cookies segment is booming.

Type Insights

On the basis of type, the market is segmented into organized and unorganized. The organized segment accounted for the largest share of the type segment. It includes established multinational companies such as Mondelez International and the Kellogg Co. The profitability of these companies depends on efficient operations, effective marketing, and a strong sales force. Large companies have advantages in purchasing, distribution, and marketing processes. The U.S. market is highly concentrated and the top 50 companies account for more than 90% of market revenue.

The unorganized segment consists of private-label companies that have benefited by providing gourmet variants, thus blurring the traditional distinction between private-label and branded products. This segment is expected to grow at a constant rate owing to growth in the number of new players. Small manufacturers can compete effectively by manufacturing allergen- and sugar-free products, high-end cookies & crackers, or products containing unusual ingredients. These companies also specialize in producing private-label brands for grocery and c-stores. The market share of private-label cookies & crackers has increased in recent years.

Product Insights

On the basis of products, the market is segmented into crackers and cookies. Crackers accounted for the largest share of the product segment in 2016. This can be attributed to their availability in different varieties and tastes. An increase in the preference for healthy snacks is also among key factors contributing to the growth of this segment. Moreover, growth in the popularity of snacking while engaging in entertainment activities such as watching sports and movies is also responsible for boosting growth opportunities for this segment. As consumers are becoming more aware of the health benefits of nutritious ingredients, there has been an unprecedented shift toward the consumption of crackers over the previous years.

Cookies are one of the most preferred snacks among all age groups and thus accounted for the second-largest share of the product segment in 2016. In addition, growth in the number of premium coffee shops and foodservice establishments in the U.S. is a key growth-rendering driver for this market. These coffee shop chains include Starbucks and Caribou Coffee, which offer cookies as accompaniments with beverages such as coffee & tea, thus contributing to the market revenue for cookies. High disposable income, urbanization, and growth in the number of white-collar jobs are also among factors responsible for boosting the growth prospects of this segment over the previous years.

Source Insights

Wheat accounted for the dominant share of the source segment in 2016. This can be attributed to relatively improved nutritional content over all-purpose flour that is known to be very unhealthy. Moreover, wheat is easy to process, can be molded easily, and requires simple machinery & equipment for manufacturing. This has encouraged small manufacturers to produce wheat-based cookies, which presented a lucrative growth potential to this segment over the previous years.

Oats are being extensively used as a healthy alternative to plain flour in biscuits. Oats accounted for the second-largest share of the source segment owing to their relatively high nutritional properties. High awareness among consumers about nutritional content in oats has boosted the sales of oat-based biscuits. However, oats are difficult to process and involve greater processing costs, thus limiting the ability of companies to develop a large product range, and this is likely to hinder market growth over the coming years.

Distribution Channel Insights

Supermarkets accounted for a substantial share of the U.S. biscuits market in 2016. They are among the highly preferred distribution channels for this market. Unprecedented change in consumer preferences is anticipated to have a positive impact on demand. High convenience due to the availability of a wide range of products in supermarkets is among major factors contributing to the greater share attained by this segment.

E-commerce/online pharmacies are anticipated to witness exponential growth throughout the forecast period. This can be attributed to associated benefits such as low operational costs and capital requirements. Moreover, online stores maintain a consistent supply of products and the option of preordering products. These benefits are expected to increase the demand for the e-commerce distribution channel throughout the forecast period.

U.S. Biscuits Market Share Insights

Some of the key players include Mondelez International, Inc.; Kellogg Co.; and United Biscuits. They have extensively adopted sustainability strategies to survive competition, such as new product development, regional expansion, and expansion of their distribution channels to attain a greater share of the market.

In addition, a high focus toward strengthening refinement in the manufacturing of technologically advanced products has facilitated key players to gain a competitive edge. For instance, in September 2016, Mondelez International announced an investment of USD 65 million to build a research, development, & quality network. This network will be designed to facilitate a stronger regional presence in countries such as Mexico, China, Brazil, Singapore, India, Poland, the United Kingdom, and Brazil.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. biscuits market on the basis of type, product, source, and distribution channel:

• Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Organized

  • Unorganized

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Cookies

  • Filled/coated Biscuits

  • Crackers

    • Flat Crackers

    • Saltine Crackers

    • Filled Crackers

    • Graham Crackers

  • Cream Wafers

  • Others

• Source Outlook (Revenue, USD Million, 2014 - 2025)

  • Oats

  • Wheat

  • Millets

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2014 - 2025)

  • Specialist Retail Stores

  • E-commerce

  • Convenience Stores

  • Supermarkets

  • Others