Snacks are flying off the shelves, and small and independent retailers have an opportunity to capitalize on this growing trend. From meat snacks to sweet and salty treats, snack sales are projected to rise in 2023. Consumers’ love for snacking, combined with their desire for value and healthier options, are driving this surge in sales.
According to recent data from CStore Decisions, the meat snack segment generated sales of nearly $2.2 billion in the calendar year ending Jan. 1, 2023, with a slight increase of 0.3%. Sweet snacks, such as snack bars, granola bars, and clusters, saw a substantial gain of 9.5%, reaching $819 million in sales in 2022. Sales of salty snacks are also expected to rise, fueled by the popularity of spicy flavors, sweet and salty combinations, and better-for-you options.
Understanding buyer preferences is key for retailers to tap into this growing market. Different generations have different snack preferences. For example, Gen Z has a slightly stronger inclination towards sweets, while millennials prefer salty snacks. Chips, cookies, and chocolate rank high on the list of preferred snacks for both generations. When at home, Gen Z tends to reach for cheese and crackers, while millennials opt for cookies and crackers. On the go, Gen Z prefers granola bars, jerky, and hard candy, while millennials lean towards granola bars and snack mixes.
To maximize the potential of the snack category, retailers should focus on generating value for their customers. Offering competitive pricing and attractive promotions can help attract and retain snack-loving shoppers. Mix-and-match deals and bundle offers have proven successful in driving interest and value in the category. It’s crucial to strike a balance between an appealing offer and maintaining a healthy profit margin.
The snack market is not only about taste; it’s also about meeting changing consumer demands. Clean labels and wellness are gaining importance, with consumers seeking healthier snack options. Retailers should consider stocking products with clean ingredients and functional benefits that cater to on-the-go snacking needs. Additionally, sustainability is becoming increasingly important, as consumers are more aware of climate change. Brands that align with consumers’ values and focus on issues like climate change, supply-chain transparency, and fair trade are expected to grow faster in this market.
For small and independent retailers, the rising snack sales present significant opportunities. By understanding consumer preferences, offering value, and stocking a diverse range of snacks that cater to different tastes and dietary needs, retailers can tap into this growing market. Embracing clean labels, functional ingredients, and sustainability can also help differentiate their offerings and attract health-conscious and socially conscious consumers.
To summarize, the snack market is booming, and small and independent retailers can benefit from this trend. By understanding consumer preferences, offering value, and aligning with changing demands, retailers can position themselves as go-to destinations for snack-loving customers.
TL;DR
Snack sales are on the rise, presenting opportunities for small and independent retailers. Meat snacks, sweet treats, and salty snacks are all experiencing growth, driven by consumer preferences for snacking and their demand for value and healthier options. Retailers should consider tailoring their offerings to different generational preferences, such as Gen Z’s preference for sweets and millennials’ preference for salty snacks. By offering competitive pricing, attractive promotions, and focusing on clean labels, functional ingredients, and sustainability, retailers can attract snack-loving customers and differentiate themselves in the market. With the right strategies in place, small and independent retailers can make the most of the growing snack sales trend.
