09.08.2024

News

Price increases pushed snack food sales up 15.6% in 2022 as volumes declined, report says

Most people in the United States consider snacking an important part of their daily diet. According to a study based on data from Circana (formerly known as IRI) and Sosland Publishing, a quarter of consumers snack every day during the day and 25% snack every night.

 

The pretzel category benefited the most from the snacking boom, being one of only two categories to show sales growth in both dollar and volume terms in 2022.

 

Sales of pretzels, which totaled about $1.8 billion last year, were boosted by new flavored and premium varieties. Two of the leading brands, Snyder’s of Hanover and Snack Factory Pretzel Crisps, are owned by Campbell Soup. The third-best-selling brand, Dot’s Homestyle Pretzels, was acquired by Hershey in late 2021. In 2022, Dot’s showed a 49.1% increase in sales and a 41.3% increase in volume.

 

Another category that showed growth on both fronts was corn snacks, with sales of $1.5 billion. Sales in packages grew by 3.6% and in dollar terms by 21.1%.

 

According to the report, most of the remaining growth in the snack segment was due to price increases. The actual number of products sold decreased in most categories.

 

In terms of volume, sales of dried meat snacks fell by 10.6%, while dollar sales increased by 1.2%. Even the larger categories, which showed a higher percentage of sales growth in dollar terms, experienced a drop in volume. Biscuits topped the list, with sales up 12.3% in dollar terms but down 4.3% in volume terms. Sales of potato chips grew by 14.5% in dollar terms, but 1% less products were sold in this category.

 

As inflation has driven up prices over the past year and a half, consumers’ willingness to pay more for snacks has been reflected in other studies.

 

In Mondelēz’s latest State of Snacking report, three out of four consumers said that higher prices for meal prep products hit their budget more than more expensive snacks. More than half are concerned about the availability of their favorite snacks on store shelves, although nearly 80% said it’s more important than ever to have moments of indulgence throughout the day.

NEWS