FORT WORTH, Texas—Consumers are looking for good value when purchasing snack foods, according to the 2009 State of the Snack Industry report. Sally Lyons Wyatt, Senior Vice President, Information Resources Inc. (IRI), presented the report’s findings at SNAXPO 2010.
IRI surveys show that 26.5% of consumers say they are snacking less frequently and that 47.5% report they are cutting back on what they spend on snacking. 54.3% say they are buying what’s on sale instead of their favorite brands. In addition, 46% of shoppers say they have increased private label purchases. Private label volume increased 8% and dollar sales were up 6%, according to IRI.
After snack purchases declined most of 2007 and into the first quarter of 2008, Wyatt said they increased by 1.1 percent in the fourth quarter of 2008 over the same period in 2007. Still, she said, 79 percent of consumers say they want the best value when they purchase their snack products.
“Everybody is trying to make each dollar count and is making sure that what they buy provides value for their families,” she said. “There is no question that the economy has had a significant impact on what consumers value and how they shop.”
However, IRI numbers show that salty snacks and cracker volume declined only 1% over the past year, and that snack nut volume remained even.
While Wyatt said consumer interest in healthier-for-you snack products continues to grow, she cautioned manufacturers not to ignore their indulgent brands. “Snacking frequency is rebounding,” she said, “with indulgent regaining traction. 47% of shoppers say they want to eat what tastes good rather than what’s healthy, and two-thirds of snack purchases still are in indulgent snacks.”
