As consumer concerns over inflation continue to rise, many shoppers are changing their snack choices to prioritize value. Throughout 2024, retailers have increasingly expanded their assortments of private label snacks to offer lower-priced yet quality alternatives to national brands. This shift not only helps consumers save money but also opens up opportunities for retailers to cater to evolving consumer preferences.
Recent insights reveal that a significant 66% of shoppers are deeply concerned about rising prices, the highest level reported since March 2023. Concurrently, 64% of consumers are actively looking for deals, sales, and coupons, highlighting the importance of value in their purchasing decisions. With this in mind, many shoppers are willing to trade down to lower-cost brands to satisfy their snacking needs without severely impacting their budgets.
Experts Melissa Myres, the insights director at 84.51˚ (a data-driven subsidiary of Kroger), and Sally Lyons Wyatt, global EVP and chief advisor at Circana, shed light on the current snack food landscape. They suggest that while price is important, shoppers are also open to trying new items and flavor profiles as long as the options remain financially accessible.
Trending Flavors and Product Types
One notable trend emerging in the snack industry is a growing interest in nostalgic flavors. After beginning in 2023, this trend has seen significant traction in 2024, with consumers enjoying innovative offerings, such as freeze-dried snacks and caffeine-infused products. Interestingly, there has also been an uptick in products focusing on well-being, reflecting a balance that consumers seek between indulgence and healthier options.
In the past six months, specific product categories have gained noticeable popularity. Meat snacks, particularly those from private labels, are seeing remarkable growth, as are trail mixes and potato chips. Sweet treats, such as candy, cookies, and yogurt, continue to maintain consumer interest. Additionally, products that traditionally fall outside the snacking category, including frozen appetizers and snack rolls, are gaining traction as consumers broaden their definitions of what constitutes a snack.
Price Sensitivity in Consumer Behavior
The effect of rising prices on purchasing decisions cannot be overstated. Research shows that snacks and candies are among the categories where price increases are most evident. A striking 43% of consumers are now willing to switch to lower-cost brands in these segments due to heightened price sensitivity. It is evident that even in the face of budget constraints, consumers continue to seek out their favorite snacks, whether they are working from home or relaxing during a sporting event.
Despite the inflationary environment, price increases have reportedly slowed when compared to the rapid hikes of 2022 and early 2023. Many consumers are taking advantage of various pack sizes available for snacks, opting for bulk purchases or multipacks where savings are more pronounced. This variety ensures that shoppers can find price points that suit their budgets, whether they prefer larger bulk orders or more affordable single-serve options.
The Role of Healthy Snacking
The demand for healthier snack options coincides with a rising awareness of health considerations among consumers. While many shoppers express a desire to make health-conscious choices, interestingly, research indicates that 28% of consumers do not examine ingredient lists when selecting snacks. Taste remains a dominant factor, with 75% prioritizing flavor over nutritional benefits—only 29% indicate a preference for options like high protein or low sugar.
This focus on taste has been exacerbated by behavioral shifts in caffeine consumption. With fewer individuals relying on coffee for energy throughout the day, consumers are turning to snacks with protein and energy-boosting properties. While health remains a priority for many, it seems that immediate needs and flavor satisfaction are driving choices more significantly at this time.
Demographic Differences in Snack Choices
Demographically, the findings suggest little variation in snack purchasing across different age groups. However, there is a notable distinction in snacking frequency. Three-quarters of consumers aged 35 to 54 report snacking multiple times a day, compared to only 56% in the younger 18 to 34 age group.
Furthermore, the generational aspect of snacking cannot be overlooked. Retailers and manufacturers need to tailor their messaging to resonate with the unique preferences of different age groups. For instance, a product that appeals to Gen X may not share the same allure for Gen Z. Personalized marketing efforts can significantly enhance traffic and sales by addressing the specific interests of each consumer cohort.
In conclusion, the actual shift toward private label snacks reflects a broader trend rooted in economic factors, consumer preferences, and insights into snacking habits. Retailers can capitalize on this opportunity by diversifying their product offerings, ensuring quality, and maintaining competitive pricing. As inflation concerns persist, consumers will continue to seek value in their snacking choices, further elevating the importance of private label brands in the marketplace.
