Consumers Choose Private Label Snacks to Mitigate National Brand Prices.

In 2024, several retailers are working to expand their snack food selections to provide shoppers with lower-priced, quality alternatives, primarily due to ongoing price increases from national brands.

Experts indicate that while consumers are price-conscious when choosing their favorite snacks, many are not simply looking for the cheapest option. Value is essential, but many shoppers are also eager to try new items and flavors without overspending. With this in mind, a growing number of retailers—from grocery stores to mass merchants and convenience outlets—are enhancing their own-brand offerings of salty and sweet snacks.

To gain deeper insights into the snack food market, Store Brands interviewed Melissa Myres, insights director at Cincinnati-based 84.51˚, the data science branch of The Kroger Co., and Sally Lyons Wyatt, global EVP and chief advisor at Circana, a consumer insights firm in Chicago.

According to Sally Lyons Wyatt, consumers are increasingly seeking snacks that provide an energy boost throughout the day. When discussing current trends in the snack food industry, Melissa Myres noted, “Recent consumer research reveals that 66% of shoppers are extremely concerned about inflation, the highest level since March 2023. Consequently, 64% of shoppers are actively seeking deals, sales, and coupons, reflecting their focus on value. While snacking continues to be popular, many consumers are shifting towards lower-cost brands to meet their needs, and they’re willing to explore alternative options.” This shift highlights that Consumers Choose Private Label Snacks to Mitigate National Brand Prices.

Lyons Wyatt also pointed out an interesting trend: nostalgic flavors have remained popular since 2023. “We’re seeing an increase in freeze-dried snacks and products containing caffeine. Additionally, there’s been a rise in items focused on well-being. Overall, consumers are trying to strike a balance between indulgence and healthier options,” she said.

When asked about specific products gaining traction, Myres mentioned a significant growth in meat snacks, particularly private label varieties, alongside trail mix and potato chips. Lyons Wyatt added that candy, whether chocolate or non-chocolate, remains a favored snack, along with cookies, crackers, yogurt, and a diverse range of options like tortilla chips, frozen novelties, and dried meats.

Regarding the impact of pricing on consumer choices, Myres highlighted that shoppers are increasingly aware of rising prices, especially in snacks and candy. “As a result, 43% of consumers are willing to switch to lower-cost brands in these categories. Snacking occasions persist, whether people are at home or attending events. Price is a primary concern, prompting consumers to seek better value,” she explained. This behavior further emphasizes that Consumers Choose Private Label Snacks to Mitigate National Brand Prices.

Lyons Wyatt added that food and beverage prices remain about 30% higher than in 2019, with snacking trends reflecting a similar trajectory. However, she noted that the pace of price increases has slowed since late 2022. The variety in snack pricing, due to different pack sizes, allows consumers to choose between larger multipacks for savings and single-serve sizes for convenience.

When discussing the role of health in snacking, Myres shared, “Most shoppers claim they care about their health, but our research indicates that 28% don’t check ingredient lists when buying snacks. A significant 75% prioritize taste and flavor over nutritional benefits, with only 29% seeking options like high protein or low sugar. While taste remains paramount, it will be interesting to see how these trends evolve.”

Lyons Wyatt noted that the decline in coffee consumption has influenced snacking habits, leading consumers to seek snacks that provide energy. “Consumers seem to prefer these snacks not necessarily for health reasons but because they fulfill an immediate need,” she said.

In terms of demographic differences in snack preferences, Myres noted no significant variations across age groups, except regarding snacking frequency. “About 75% of consumers aged 35 to 54 report snacking multiple times a day, while only 56% of those aged 18 to 34 do the same,” she shared.

Lyons Wyatt stressed the importance of tailoring marketing messages to different generations, stating, “It’s crucial to cater to the unique preferences of each age group. A product that appeals to Gen X may not resonate with Gen Z. Retailers and manufacturers should focus on personalizing their messaging for various cohorts to enhance traffic and boost sales. This approach supports the trend where Consumers Choose Private Label Snacks to Mitigate National Brand Prices.”

In summary, as retailers adapt to the evolving landscape, the emphasis on private label snacks continues to grow, reflecting a shift in consumer behavior towards quality and affordability.