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Economy Down, Snack Sales Up
OCTOBER 31, 2009 --
Even though the economic downturn has caused many consumers to be more cautious about spending, supermarket sales of snack products have increased markedly over the past two years, and there are signs that this growth will continue at least into the near future.
Brian Todd, president of The Food Institute, told attendees of the 2009 SFA Management Workshop in Charlotte, NC that a recent study by NPD Group predicts that the total number of in-home snack occasions will increase by 19 percent by 2018, compared to 2008, indicating the trend towards higher snack sales is likely to continue.
Todd also cited a forecast by Information Resources, Inc that shows that by the end of 2009, corn snacks sales will increase by 2.11% over 2008, which was up 3.37% over 2007. Tortilla chip sales will jump 6.13% in 2009 over 2008, which produced an increase of 6.75% over 2007. Salty snack sales will climb by 8.85% in 2009 vs. 2008, up 7.45% vs. the previous year. Sales of pretzels will jump 5.52% in 2009 over 2008, which increased 5.98% over 2007. Potato chips will skyrocket by 11.63% in 2009 vs. 2008, which increased 8.91% vs. 2007.
The recession, he said, has prompted consumers to change their buying behavior by saving more money, choosing more private label and value brands, clipping more coupons, raiding the pantry, and eating at home more frequently. That behavior, he suggested, will likely continue for the foreseeable future.
That assessment tracks with a survey commissioned by IBM reported in September that found that 72 percent of respondents have made “significant spending cuts” because of the U.S. economy, including 59 percent of those earning $100,000 or more per year. Steps taken most often to save money involve shopping more stores to get the best deal, by 49 percent of those surveyed, and switching stores, 35 percent.
Guy Blissett, consumer products leader for IBM, said some consumers will go back to spending more when the economy improves. “But people tell us these behaviors will stick,” he said.
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