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Diving Briefs:
- According to a recent snack report from Nielseniq, we sold almost 160 million back chips, crackers and other snacks for 52 weeks until April 22.
- However, the grocery store lost about 55 million snack units for clubs and mass sellers during the same period, the company said.
- This report indicates that the grocery store is sitting in the middle of the snack conversion because consumers who are sensitive to price reduce snack spending and prioritize the larger pack size and personal trademark options.
Dive Insights:
Nielseniq’s research shows that shoppers take various measures to spend less snacks. It is good news and bad news for groceries.
The good news is that the groceries are wasteful from retailers that specialize in impulse purchases and single service snacks. This includes the C store, which accounts for 38%of groceries, which ended on March 22, which ended on March 22, followed by pharmacies (29%) and dollar shops (22%).
42%of shoppers told Nielseniq about less snacks on Nielseniq. 63%said they bought a larger size to save money in the long run. This is suitable for grocery shops that specialize in multi -packs, family -sized bags and similar options.
However, since 90%of the snacks that have lost grocery shops have been lost to club stores such as COSTCO and SAM ‘S Club during the period measured by Nielseniq, the driving force for savings for purchases is also reduced against the grocery store. NIELSENIQ says Grocers has lost $ 227 million in snack sales to club retailers and mass sellers.
Consumers who are sensitive to price are spending less on snacks.
The ratio of monthly food budget spent on snacks
Consumers also seem to be less spent on snacks. Those who say that they spend more than a quarter of the monthly food budget in the snacks are reduced compared to 2023, while the rate of spending up to 10%of the monthly budget for snacks has increased.
In this evolving snack battle, retailers who sell personal trademark snacks can win this evolving snack battle, the report said. 80 %of the consumers surveyed by Nielseniq provides equal or better quality than the name brand snacks, and Gen Z is particularly positive than other generations.
E -commerce has also been proven to be a popular channel for snack shoppers, and 294 snack unit sales move online at brick and mortar stores during that period.
According to Nielseniq, another positive discovery of groceries: consumers buy snacks most often, followed by mass merchants and dollar stores.
