Where Snacking Data Is Telling Retailers to Focus
By Rachel Gignac on Apr. 14, 2023While the younger generation is snacking more than the older generation, all generations are snacking three plus times a day, according to data from Chicago-based market research firm Circana.
With the growth in snacking, retailers can maximize purchases by analyzing the data. Read ahead for five tips from Sally Lyons Wyatt, executive vice president and practice leader of client insights at Chicago-based Circana.
Dayparts
Consumers are buying snacks all throughout the day, according to Circana data.
“Across the daypart 2022 didn’t see as big of an uptick as we did in 2021, however, there is still double-digit growth across each daypart, which shows the strength of snacking across the day but also the role that convenience is playing,” said Lyons Wyatt.
The first row of the chart shows the national average, and the following rows represent how many percentage points can be added to the average to tell how much of each age range is snacking during that time of day.
“This information is great for action ideas,” said Lyons Wyatt. “Maybe give some point-in-time messaging to your core and target consumers.”
Targeting different audiences throughout the day can maximize the influence of messaging.
Reward programs
Apps and reward programs have helped c-stores retain customers and make more sales, Lyons Wyatt said.
Inflation and rising gas prices give customers a reason to join for rewards, and 40% of those who are on a loyalty program are exclusive to that retailer. Also, 35% of consumers make additional purchases when they redeem rewards, according to Circana.
While people used to be influenced the most by prices, previous trust of brands and packaging, there are new influences that have gained traction. The number of consumers that use apps to pick and purchase snacks was up eight points in two years. Other newer influencers include in-store kiosks, online ads, information from websites and emails and recommended by a store clerk.
Snack size variety
While bigger-sized snacks are growing in unit sales, items under 5 ounces are “really winning in the channel,” she said.
There are consumers who have a budget that directs them toward certain categories, brands and sizes, so offer a variety of sizes.
Delivery
Finally, Lyons Wyatt suggests delivery as the "last mile" to drive opportunities.
If a consumer doesn't have time to shop, they are going to choose a store that offers delivery. Many convenience retailers are partnering with delivery services for this reason, said Lyons Wyatt.
"It's working, especially for the younger generation who really don't want to run to the store at 10 or 11 at night," she said.
Foodservice
Convenience-store foodservice had the second highest share of traffic in commercial foodservice in 2022, taking up a 17% share with 2% growth from a year ago, according to Circana data. The only category with more share was quick-service restaurant (QSR), which takes up the majority of commercial foodservice at 58%, but c-store was ahead of fast casual, midscale, casual dining and all other retail.