"Even 'National Snacks' Are a Price Burden... Americans Cutting Back on Snack Consumption"

42% Say "We Are Buying Fewer Snacks Due to Rising Prices"

Foreign media reported that Americans are feeling the burden of rising prices and are even cutting back on snack consumption, which is considered the 'national snack.'

CNN Business reported on the 18th (local time) that "Americans are reducing their consumption of Doritos (chips), Goldfish (crackers), and Hostess (cakes)," adding, "Not for health reasons, but because even small expenses like snacks have become too expensive to afford." The listed products are considered so-called 'national snacks' in the United States.

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In a survey conducted by market research firm NIQ in February targeting 1,000 American consumers, 42% of respondents said, "I have reduced snack purchases due to rising prices." Chris Kostalgi, vice president of the company, told CNN, "Consumers are cutting back on spending for non-essential products and trying to maximize the value of every penny," adding, "This is affecting snack consumption."

Another market research firm, Circana, also reported that purchases of salty snacks and cookies decreased by 0.3% each over the past year until the 23rd of last month. The company analyzed, "As consumers cut back on large expenditures such as air travel, home remodeling, and clothing purchases, snack purchases have also decreased."

This trend was also confirmed in the performance of food companies. PepsiCo, Campbell, and JM Smucker recently mentioned sluggish sales of snack brands in their earnings reports.

PepsiCo, which owns Frito-Lay, the manufacturer of the potato chip brand 'Lay's,' said that consumer snack consumption decreased by 3% last quarter, analyzing that "inflationary pressures and high borrowing costs have accumulated on consumer budgets." Sales of 'Goldfish' crackers and 'Snyder's of Hanover' pretzels also declined. Campbell, which owns the two brands, reported that snack sales in the recent quarter were "weaker than expected," with a 2% decrease in sales. JM Smucker, owner of 'Hostess' cakes, also stated, "As people become more cautious with spending, snack sales decreased by 5% in the recent quarter."

One contributing factor is that snack prices have risen more steeply than other groceries. According to the U.S. Bureau of Labor Statistics (BLS), grocery prices have increased by 23% since February 2021, but chip snack prices jumped 29%. Last month, the average price of a 16-ounce bag of potato chips was $6.50, up 28.7% from $5.05 four years ago.

CNN also reported that "consumers are switching from large brand products like Doritos to private brands (PB) at Walmart or Costco to save costs."

In this situation, companies are concerned that consumer spending will slow further due to tariffs imposed by U.S. President Donald Trump on imports, resulting inflation, and a weak stock market. U.S. retail sales in February, announced by the U.S. Department of Commerce, increased by only 0.2% compared to the previous month, falling short of market expectations. CNN pointed out, "Sluggish consumer spending is raising concerns that the U.S. economy is slowing down and entering a recession."