Table of Contents
Key Takeaways:
- Grocers managed to capture nearly 160 million snack sales from competitors in the past 52 weeks, as per NielsenIQ’s snacking report.
- However, they lost around 56 million snack unit sales to club and mass merchandisers during the same period.
- The report highlights a shift in snacking behavior, with price-conscious consumers opting for larger pack sizes and private label options.
Insights:
NielsenIQ’s research indicates that consumers are adopting various strategies to reduce spending on snacks, presenting both opportunities and challenges for grocers.
On the positive side, grocers are attracting a significant share of snacking dollars from impulse purchase retailers like c-stores, drug stores, and dollar stores.
However, the trend of buying in bulk to save money has led to grocers losing a substantial portion of snack sales to club retailers like Costco and Sam’s Club.
Price-conscious consumers are spending less on snacks
Percent of monthly food budget spent on snacks
There is a noticeable decline in overall snack spending, with fewer consumers allocating a large portion of their food budget to snacks.
The rise of private label snacks presents an opportunity for retailers to cater to changing consumer preferences, with a majority seeing private label snacks as offering comparable or better quality than name brands.
E-commerce is gaining traction as a preferred channel for snack purchases, with a shift of 294 snack unit sales from brick-and-mortar to online stores.
Despite the challenges, grocers remain the top choice for consumers when it comes to purchasing snacks, followed by mass merchandisers and dollar stores, according to NielsenIQ.