Despite the recent restrictions on food item eligibility and other changes impacting SNAP in 2025, participants in the federal nutrition-assistance program continue to play a significant role in the grocery industry, according to statistics from Circana.
Households receiving SNAP benefits spend 23% more on CPG food and beverages compared to non-SNAP households, as reported by the market research firm in a recent study. These households also make 29% more shopping trips, with a focus on beverages, refrigerated products, and frozen foods.
Sally Lyons Wyatt, Global Executive Vice President and Chief Advisor at Circana, highlighted the frequent store visits by SNAP shoppers, attributing it to their paycheck-to-paycheck lifestyle. Categories like baby food, juices, frozen desserts, and carbonated soft drinks heavily rely on SNAP beneficiaries for sales.
SNAP participants play a crucial role in grocery sales by making more frequent store visits and supplementing their benefits with additional funds. They often opt for premium products to enhance mealtime experiences and compensate for the expenses of dining out.
During the fiscal year, SNAP participants contributed $336 billion to total CPG food and beverage spending, with the federal government allocating $100 billion to the program and serving around 42 million monthly participants in 2024.
Circana’s research also revealed that conventional food retailers capture a significant portion of SNAP spending, surpassing other types of retailers. Furthermore, three-quarters of food and beverage spending by SNAP shoppers goes towards name brands, although private brand purchases are gradually increasing.