Snack cake sales slide to US$2.12 billion, making 6% decline amid consumer shifts: Circana

USA – Snack cake dollar sales reached US$2.12 billion over the 52 weeks ending May 18, marking a 6% decline compared to the previous year, according to Chicago-based research firm, Circana.

The report attributes the decline to several major baking firms strategically expanding their snack cake offerings, demonstrating a clear plan to recover from underwhelming sales in the category.

Unit sales also dipped, falling 8% year-over-year to US$724.9 million.

Orrville, Ohio-based J.M. Smucker Co., which owns the Hostess brand, led dollar sales across multiple snack cake segments.

Despite a 12% drop in bar/finger snack cakes and a 1.4% decline in snack cupcakes over the 52 weeks, J.M. Smucker maintained its position as the second-largest producer in bar/finger snack cakes with US$282.24 million in sales and topping the snack cupcake category with US$265.12 million, according to Circana.

Mark Smucker, president and CEO of J.M. Smucker, stated that strengthening the Hostess snack cake lineup is key to helping the company recover from a year marked by declining sales across several product segments.

“We are strengthening our portfolio to stabilize the Hostess brand’s performance and deliver margin expansion,” Smucker said in a June 10 earnings call.

“This includes optimizing our assortment, executing portfolio simplification tied to fixed cost reductions and improving competitiveness through key price points. Actions we are taking include improving core velocities through brand building, media investment and breakthrough activations. We are currently launching a portfolio redesign across all consumer touchpoints and optimizing our assortment of product offerings through SKU and display rationalization.”

In March, the company rolled out Hostess Cupcakes, Small, soft chocolate cupcakes filled with whipped crème and topped with chocolate icing featuring the iconic Original Squiggle. They’re made with real cocoa and contain no high-fructose corn syrup or artificial flavours.

Mexico City-headquartered Grupo Bimbo SAB de CV is also updating its snack cake portfolio.

According to Circana, over the 52 weeks ending May 18, centre-store sales of its bar/finger snack cakes edged up by 0.1% to US$147.16 million, while roll snack cakes saw a 5.6% boost to US$10.73 million. In contrast, snack cupcake sales declined by 6.9%, totalling US$29.49 million, primarily due to changing consumer preferences and increased competition in the market.

To address declining snack cupcake sales, Bimbo Bakeries USA revamped its Entenmann’s Baker’s Delight line in April, introducing two new mini snack cake flavours: Mini Iced Chocolate Chip and Mini Iced Party, specifically crafted to attract younger consumers with colourful icing and playful sprinkles.

“Snackers crave convenience and variety, and our Mini Snack Cakes rebrand delivers both,” remarked Richard Link, senior director of marketing for Entenmann’s.

“We’re celebrating by launching two new flavours with delicious icing, colourful sprinkles and a fresh new look, bringing more excitement to snack time.” 

Flowers Foods, Inc., based in Thomasville, Ga., is working to revive its snack cake sales.

According to Circana data, over the 52 weeks ending May 18, the company saw declines of 9.6% in bar/finger snack cakes and 24% in snack cupcakes, with sales falling to US$70.74 million and US$59.82 million, respectively. In contrast, roll snack cakes experienced a dramatic upswing, jumping 155% to US$8.87 million.

Flowers Foods is significantly expanding its sweet-baked snacks portfolio with the launch of the Wonder brand’s new snack line, introduced in March.

The lineup features a variety of indulgent treats, including donut sticks, confetti cakes, cinnamon rolls and twists, chocolate cupcakes, mini donuts (frosted and powdered), honey buns (glazed and iced), bite-size crunch donuts, and peanut butter wafers, joining existing brands Tastykake and Mrs. Freshley’s in the company’s snack cake portfolio.

A. Ryals McMullian, chief executive officer, noted that the launch of the new Wonder products contributed to an increase in Flowers’ unit share in the snack cake category during the first fiscal quarter of 2025.

“In our sweet baked goods business, the Wonder line of cake products is already benefiting our performance, contributing to a 10-basis point unit share gain in the cake category despite being introduced later in the quarter,” McMullian said in an earnings call.

“We are on track to exceed our distribution goal for the year, and we are optimistic about the product line’s potential.”

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