Private label potato chips found at Aldi
Circana insights show that 72% of consumers look at the price of snacks before making a purchase, up 5% over the past two years. Additionally, one quarter of consumers said they are buying items on sale with greater frequency, up 3% over the same time period.
The price sensitivity of today’s consumers would seem to provide new opportunities for retailers to either boost their private label snack assortments, or enhance the visibility of those products in front of consumers.
“In fact, 61% of consumers said they switched to private brands when their budget got tight, so many made the switch,” said Sally Lyons Wyatt, executive vice president and practice leader with Circana.
Over the past five years, a number of private label snack categories have seen at least 5% dollar share along with unit share grow. They include refrigerated snack cakes and doughnuts; refrigerated pastry, danish, and coffee cakes; frozen cookies; aerosol and squeezable cheese spreads; snack nuts; and pork rinds.
“There was a recognition from retailers a while ago about the role snacking was going to play,” Lyons Wyatt explained. “They started to invest in innovation, trying to take over certain categories with products that offer quality and a positive taste experience at a price less than that of national brands.”
Further investment in innovation by retailers in their private brand snack selection could also open new doors with shoppers, and not just with those at lower income levels. Depending on the category, Lyons Wyatt said retailers could bring to market snack products that are aimed at consumers at higher income levels who are also looking for options that offer a better value.