Findings
Higher Annual Spending:
SNAP households spend 32% more annually per buyer than non-SNAP households, driven by more frequent shopping trips (+22%).
Spending per trip remains lower due to budget constraints.
Shopping Preferences:
Strong preference for food and beverage items, particularly convenience and functional hydration products.
Name-brand loyalty persists, though private-label purchases are significant.
Economic Impact:
SNAP participation slightly declined (-1.7% YoY) but still accounts for 20% market share, primarily in value-based channels.
Key Behaviors:
“Just-in-Time” Purchases: Reflecting SNAP benefit payment cycles, shoppers prioritize affordability and convenience.
Growth in meal solutions and appliance ideas tailored for budget-conscious households.
Key Takeaway
SNAP shoppers represent a resilient and influential market segment with distinct preferences for affordability, convenience, and value, providing significant opportunities for CPG retailers and manufacturers.
Consumer Motivation
Affordability: Accessible pricing and meal solutions are top priorities.
Value Maximization: Combining private-label and name-brand products to stretch budgets.
Convenience: Products and services that simplify meal preparation.
What is Driving the Trend
Rising economic pressures on low-income households.
Demand for cost-effective, functional, and convenient solutions.
Influence of SNAP benefit cycles on purchasing behaviors.
Who Are SNAP Shoppers?
Demographics:
Low- to moderate-income households, often larger families.
Represent one in eight Americans.
Shopping Habits:
Frequent store visits with lower spend per trip.
Brand-loyal but open to deals and private-label options.
Description of Consumers
Products Referenced: Food and beverages, functional hydration products, and convenience items.
Age: Broad range, often families and working adults managing tight budgets.
Conclusions
SNAP shoppers’ consistent spending habits and brand loyalty make them a critical group for growth in food and beverage categories.
Targeted strategies can help brands meet this group’s unique needs while driving incremental growth.
Implications for Brands
Affordability Focus: Offer competitive pricing and bundled deals.
Occasion Deals: Pair private-label and name-brand products to increase basket sizes.
Tailored Promotions: Align marketing efforts with SNAP payment schedules.
Implications for Society
Supporting SNAP shoppers can enhance food security and well-being for low-income households.
Educational initiatives on cost-effective eating can promote healthier food choices.
Implications for Consumers
Better access to affordable, convenient, and nutritious meal solutions.
Enhanced ability to maximize SNAP benefits with targeted promotions and resources.
Implications for the Future
SNAP shoppers will continue to influence food and beverage sales, with demand for affordable, functional, and convenient products likely growing.
Consumer Trend
Resilient Value-Based Shopping: Persistent focus on affordability, convenience, and value.
Consumer Sub-Trend
Just-in-Time Shopping: Purchases aligned with benefit cycles and immediate needs.
Big Social Trend
Economic Resilience in Food Consumption: Balancing affordability and quality during economic pressures.
Local Trend
Increased shopping frequency and spending by SNAP participants in value-based channels.
Worldwide Social Trend
Global emphasis on affordable food solutions for low-income households amid economic challenges.
Name of Big Trend Implied by Article
"Value-Driven Resilience in Grocery Spending"
Name of Big Social Trend Implied by Article
"Economic Adaptation in Food Markets"
Social Drive
Economic challenges affecting low-income households.
Need for accessible, nutritious, and affordable food options.
Learnings for Companies in 2025
Optimize Product Placement: Strategically position items that meet SNAP shoppers' needs.
Flexible Promotions: Time discounts and marketing to align with SNAP benefit cycles.
Focus on Convenience: Provide easy meal solutions and functional hydration products.
Leverage Partnerships: Use USDA education materials to build trust and add value.
Strategy Recommendations for 2025
Occasion Bundling: Co-promote private and name-brand products for added value.
Digital Campaigns: Use social media to engage SNAP shoppers with practical meal ideas and discounts.
Localized Efforts: Align promotions and pricing with local SNAP dynamics.
Health and Functionality: Highlight affordable options that support nutrition and wellness.
Final Sentence (Key Concept)
SNAP shoppers exemplify resilience and value-driven behaviors, presenting a critical opportunity for brands to balance affordability, functionality, and convenience in their strategies.
What Brands Should Do in 2025
Action: Develop value-based promotions, accessible meal solutions, and co-branded deals.
How to Do It:
Design marketing around SNAP benefit schedules.
Highlight affordability without compromising quality.
Use digital and educational tools to connect with and support SNAP shoppers.
*SNAP shoppers are individuals or households who participate in the Supplemental Nutrition Assistance Program (SNAP), a U.S. federal assistance program that provides low-income individuals and families with funds to purchase food. SNAP is designed to reduce food insecurity by supplementing participants' food budgets, allowing them to access nutritious food.
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