Snac World - Official State of the Industry 2024 - 9

STATE OF THE INDUSTRY
by Beth Day
Consumers still love their salty snacks and seek
indulgences to satisfy cravings. With economic uncertainty
continuing, price and value are strong considerations,
along with snacks that deliver on bold
flavors, health claims and new eating occasions.
Prices remain high but they're not rising anywhere
near the double-digit increases from midyear
2022 to 2023. Inflation waned during 2023,
but consumers were looking for ways to manage
their budgets, a trend expected to remain in 2024.
These factors have led to unit and volume softness
across most snacking categories, as with most
food and beverage sectors. In addition, producers
must consider other significant shifts in snacking
and product purchases.
" Taking into account the macro impact for the
category over the past couple of years, we see
that consumers have shifted gears on what, where
and how they buy their snacks, and it is impacting
unit and volume sales, " said Sally Lyons Wyatt,
executive vice president and practice leader, client
insights, at Circana. " They are pulling different levers
with snack choices with some buying less product,
while others are downsizing to buy smaller sizes
or turning to multi-packs to stretch pantry items.
Some consumers are not returning to categories
as often, and still others have changed where they
shop. "
The overall salty snacks category posted 6.9%
growth with more than $31.1 billion in dollar sales,
according to data from Circana for the 52 weeks
ending Jan. 28. In the broader snack aisle, which
includes cookies and crackers, sales were $51.7
billion, up 4.6%.
Shifts are occurring within separate snack categories.
Unit sales dropped for most, but some
are impacted more than others with price being a
deterrent. For example, fruit snacks and some nutrition
bars have declined in units due to large price
increases. Conversely, some bars increased in both
dollars and units because of expanded consumer
mobility during 2023 and the likelihood these products
meet a specific need for consumer groups.
Lyons Wyatt explained that the impact on sales
is different for each category and based not only
on price but also innovation, availability and the
loyalty factor. For tortilla chips, some consumers
are unwilling to do without their favorite brand and
will pay the higher price. The Circana data for the
52 weeks ending Jan. 28 shows price increases
for tortilla chips, yet the category still thrives as unit
sales rose.
Other Salted Snacks delivers on alternative bases
and healthier options that move the needle for better-for-you
(BFY) salty snacks, posting 3.3% growth
with more than $6.6 billion in sales. Corn Snacks
showed explosive growth with a 19.5% increase
2024 SNAC WORLD
9
Price and value
are driving
snack sales
as consumers
feel the pinch
at the register,
but innovation
can create
opportunities
for growth.
©Jenifoto-stock.adobe.com
Snac World - Official State of the Industry 2024

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