Many Americans are snacking more, but looking for bargains in the snack aisle
Many Americans are snacking more, but looking for bargains in the snack aisle
There will be a lot of snacking going on this weekend — maybe while many of us are watching a certain football game? Sales of snack foods typically go up the week ahead of the Super Bowl, but longer-term the outlook for the snack food market is a little more complex.
PepsiCo, the snack food and beverage conglomerate, announced its quarterly earnings Friday, which showed that higher prices for its products contributed to higher profits. But those higher prices also hit sales.
In its Frito-Lay division, for instance, which makes its eponymous chips as well as Doritos, SunChips and Funyuns, sales volume declined by 2 percent. So, what can Americans’ snacking habits tell us about the broader economy?
About 27% of food and beverage sales in the U.S. are snacks, according to the industry group Snac International.
“There is core snacking, which I think all of us can agree would be your traditional chips, pretzels, crackers,” said Christine Cochran, who is president and CEO of the organization.
“And then you have snacking-adjacent categories, and that’s an area that continues to grow and evolve. Some people would include in that beverages like a yogurt drink or maybe a string cheese, those sorts of things,” said Cochran.
Cochran said about 72% of consumers check prices before they grab that bag of chips or packet of string cheese. And maybe they’re going for a cheaper option these days.
Despite PepsiCo’s mixed results, many Americans are eating more snacks year over year — especially as they return to the office, said Becca Jablonski, who co-directs the Food Systems Institute at Colorado State University.
“People are eating more snack foods, in some ways, to be more productive at work. So they’re taking less breaks, and they’re trying to keep up and maintain energy,” Jablonski said.
Research from NielsenIQ found that while consumers still want to satisfy their snacking urges, they are looking for deals on their favorite treats.
Carman Allison is vice president of thought leadership for the company’s North American division.
“Overall, we’ve seen promotions jump. About 27% of all the dollars that we spend in a grocery store is on sale,” Allison said. “Snacking foods is a little bit higher. About 37% of everything we buy in snack foods is on promotion.”
Allison said that even when people are trying to buckle down and save, snacking can be a small luxury they can still enjoy. Even if those small luxuries are a bit pricier than they used to be.
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