Thus far, COVID and inflation “have not stopped the way consumers snack,” Sally Lyons Wyatt, executive vice president and
practice leader for IRI, said during a presentation at the National Confectioners Association’s Sweets & Snack Expo.
She described the state of snacks as a seesaw:
- On one side, consumers continue to snack in a sustained manner, driven by multiple factors, including revived mobility, a hybrid working status, product innovation , a robust variety of sizes, flavors, indulgence and health, consumer exploration and packaging .
- On the other, this sustained trend is fueling inflation and exerting pressure on the supply chain, which in turn leads to higher supplier and retailer cost burdens.
U.S. consumers currently average 2.7 snacks per day, and 45% eat three or more, according to IRI data. In all retail channels, “core snacking” is up 10% from a year ago in dollar sales during the 52 weeks ending April 17, according to IRI. That’s outpacing total food and beverage sales, which are up 7% over the same period.
“C-stores are doing quite well, but they might see some customers asking whether they should just buy gas on this trip or just head inside to buy something to eat.”
Wyatt says price hikes could put that growth at risk. “Convenience retailers have to understand where the line is that can’t be crossed [with pricing],” Wyatt says. “With some categories, they get close to crossing the proverbial cliff. People want to buy, but it becomes too expensive.”
“C-stores are doing quite well,” she adds, “but they might see some customers asking whether they should just buy gas during this trip or head inside to buy something to eat and forego the fuel. That’s an unheard-of question six months to a year ago.”