DALLAS — Consumer behaviors, attitudes and buying habits are in flux, and snack manufacturers need to know what’s “in” when engaging in new product development.
During SNX 2024 in Dallas, Circana’s Sally Lyons Wyatt, global executive VP and chief advisor consumer goods and foodservice insights, and Darren Seifer, industry analyst, CPG, food consumption and foodservice, shared key insights about American consumers and snacking during education session What’s New with the American Consumer?
Wyatt noted that American consumers have faced various “stoplights” over the past 18-24 months — such as the 30% increase in CPG prices and stagnant wages despite those price increases — which are impacting how they shop.
“Those two points alone say that the consumer is having to make some changes in how and what they buy, because they don’t have the same amount of money to spend, especially if they’re lower-middle income,” she said.
Despite higher prices, consumers still love snacking
In turn, Wyatt shared that consumers are not purchasing as much as they used to due to cost. Yet, these money-conscious consumers are still intentional about snacking.
According to Circana, 46% of consumers snack more than three times a day. Though that figure is down three points vs. a year ago, there is no change from five years ago. Mobility is a major factor in how consumers snack, especially impacting where the purchase and consume snacks.
Cookies and crackers are in the top five within the snack category. However, tortilla/tostada chips, along with all other salted snacks and yogurt, are seeing both a dollar and unit sales increase as of the 52 weeks ending Dec. 31, 2023.
“Those three have had a slight unit growth,” Wyatt said. “Part of that is driven by the diversity of sizes available but also availability and consumer relevancy. So, those three have done a really nice job at capturing consumers’ attention.”