CHICAGO – Circana’s latest research shows that households enrolled in the Supplemental Nutrition Assistance Program (SNAP) spend 23% more per household on CPG food and beverages compared to non-SNAP households. This underscores the substantial purchasing power and unique shopping patterns of this critical consumer group, which now represents $336 billion in total CPG food and beverage expenditures.
The comprehensive study delves into the shifting dynamics of SNAP shoppers, finding that despite a decline in EBT payment usage over the past year, they remain a highly valuable segment for retailers. Key findings from the report include:
- SNAP households make 29% more shopping trips compared to non-SNAP households.
- 75% of SNAP food and beverage spending is on name brands.
- Food retailers are gaining share of SNAP shoppers’ spending along with club stores and e-commerce.
“Despite recent economic shifts and changes in benefit payments, SNAP households continue to be a powerhouse consumer group for the CPG industry,” said Sally Lyons Wyatt, executive vice president and practice leader, Circana. “They make 29% more trips than non-SNAP households and contribute significant spending, particularly in essential aisles like beverage, refrigerated, and frozen foods, underscoring the need for tailored strategies. Retailers and manufacturers who prioritize value, convenience, and the specific needs of these shoppers will be best positioned for growth.”
Circana’s research highlights that food retailers account for the largest share of SNAP channel dollar spend (46%), up from the previous year. The findings also reveal that SNAP shoppers use EBT payments more frequently for online purchases than non-SNAP shoppers, reflecting a growing emphasis on convenience and value in their buying habits. The report delves into category performance, channel dynamics, and regional trends, providing actionable insights for brands and retailers to better connect with this audience.
