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Despite food eligibility restrictions and other changes hitting SNAP in 2025, federal nutrition assistance program participants remain a powerful force in the grocery industry, according to statistics from Circana.
Households receiving SNAP benefits spend 23% more on CPG foods and beverages than non-SNAP households, the market research firm said in a report released in November that incorporated data reflecting the 52-week period ended Sept. 28. The survey also found that SNAP households shop 29% more often than other households, spending a significant portion of their spending on beverages, refrigerated goods, and frozen foods.
“These shoppers, whether they spend their own money or SNAP money, are in stores more often than non-SNAP consumers,” Sally Lyons Wyatt, Circana’s global vice president and chief counsel, said in an interview. “Part of the reason is that you live paycheck to paycheck. You travel more because you travel when you have money.”
Categories such as baby food, juice, frozen desserts and carbonated soft drinks are more determined by who receives SNAP benefits. Meanwhile, these consumers play a smaller role in driving sales in wine, coffee, drink mix and pasta stores.
Lyons Wyatt noted that SNAP recipients play a particularly important role in driving grocery sales because they visit stores more often and supplement their benefits with other funds. SNAP shoppers also purchase premium products to make mealtimes more enjoyable and to compensate for the higher costs of eating out, she noted.
“They don’t go to the movies very often and they don’t buy a lot of clothes,” Lyons Wyatt said. “So when it comes to groceries, you might want to spend an extra dollar or two on a more premium product to get that out-of-home experience.”
According to Circana, SNAP participants accounted for $336 billion in total CPG food and beverage spending during the period studied, which coincides with the federal government’s fiscal year. The federal government has spent $100 billion on SNAP, with about 42 million monthly participants in fiscal year 2024, according to the USDA.
Circana also found that traditional food retailers account for nearly half of SNAP spending. This is ahead of all other types of retailers and an increase from the previous year. Circana also found that while three-quarters of SNAP shoppers’ food and beverage spending goes to name brands, the share of spending on private brands is increasing.
