Snacking Trends: Grocers Gain Ground Amidst Shifting Consumer Habits
In a recent snacking report by NielsenIQ, it was revealed that grocers managed to capture sales of nearly 160 million bags of chips, boxes of crackers, and other snacks from their competitors in the 52-week period ending on March 22. However, during the same timeframe, grocers lost around 56 million snack unit sales to club and mass merchandisers.
The report highlights a significant shift in consumer behavior when it comes to snacking, as price-conscious shoppers are cutting back on snack spending and showing a preference for larger pack sizes and private label options.
Consumer Behavior Shifts Impacting Grocers
NielsenIQ’s research indicates that consumers are adopting various strategies to reduce their spending on snacks, presenting both opportunities and challenges for grocers.
On the positive side, grocers are successfully attracting a substantial share of snacking dollars from retailers specializing in impulse purchases and single-serve snacks. Convenience stores, accounting for 38% of the unit shift to grocery, followed by drug stores (29%) and dollar stores (22%), are losing out to grocers in this regard.
With 42% of shoppers admitting to buying snacks less frequently and 63% opting for larger sizes to save money in the long run, grocers are well-positioned to meet this demand with their array of multipacks and family-size options.
However, the trend of bulk purchasing to save money is also benefiting club stores like Costco and Sam’s Club, as 90% of the snacking unit sales lost by grocers went to these retailers. Overall, grocers saw a loss of $247 million in snack sales to club retailers and mass merchandisers.
Private Label Snacks and E-commerce on the Rise
As consumers tighten their snack budgets, private label snacks are gaining traction as a viable alternative to name brands. According to NielsenIQ, 80% of consumers find private label snacks to be of equal or better quality than their branded counterparts, with Gen Z showing a particularly favorable attitude towards them.
Moreover, e-commerce is emerging as a popular channel for snack shopping, with 294 snack unit sales shifting from physical stores to online platforms during the measured period.
Despite these shifts, grocers remain the preferred destination for snack purchases, followed by mass merchandisers and dollar stores, according to NielsenIQ data.