Snack consumption is declining as rising prices take a toll on American shoppers.
A recent survey by research firm NIQ found that 42% of consumers are buying fewer snacks due to their increasing cost.
Data from Circana further shows a 0.3% decrease in purchases of salty snacks and cookies over the past year, suggesting that shoppers are opting to spend their grocery budgets on necessities rather than treats.
“Consumers are cutting back on non-essentials and stretching the value they get out of every dollar. That’s hitting snacking,” said Chris Costalgi, vice president at NIQ, in an interview with CNN.
The impact on snack sales has been felt by major food brands.
Campbell, the parent company of Goldfish and Snyder’s of Hanover, reported a 2% decline in snack revenue last quarter.
Additionally, PepsiCo, the parent of Frito-Lay, noted a 3% drop in the segment, citing weaker performance in savory snacks.
JM Smucker also saw a 5% decrease in snack sales, attributing this to more cautious and selective shopping habits.
However, consumers are not abandoning snacks entirely. Many are opting for private-label store brands instead of pricier name brands to save money.
In response to these challenges, some companies have resorted to ‘shrinkflation’ – reducing product sizes while maintaining prices, a tactic that has sometimes backfired, as seen when Pepsi downsized its snack packages last year, leading to customer complaints and negative publicity.
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