The latest pandemic surge may have faded, but many of the habits Americans developed over the past two years remain, including how they snack.
Not only are customers snacking more, but they show an increased desire for larger packs of jerky and more individually packaged snack items.
Meat snacks fit well within the way consumers want to eat today, which includes a desire to eat with more purpose, and not necessarily by following a diet.
Sales Climb
Snacks across segments are showing double-digit growth as more traffic returns to c-stores post-pandemic.
Dried meat snacks recorded $2.20 billion in sales, leaping by 19.6% for the 52 weeks ending March 20, 2022, according to total U.S. convenience store data from Chicago-based research firm IRI.
Within the dried meat snack category, jerky dollar sales of $967 million were up 21.8% year over year, but were eclipsed by “all other” dried meat snacks at $1.20 billion, up 18% for the period.
Salty snack sales reached $6.26 billion, a gain of 15.1% for the same 52-week period. Within the salty snack category, potato chips led the way with sales of $1.90 billion, up 14.8%. Tortilla/tostada chips rang in at $1.34 billion, up 18.4%. Sales of bakery snacks were $960 million, an uptick of 17.1%.
Dried fruit snacks recorded sales of $138 million, a whopping 35.1% annual increase. Snack bars, granola bars and clusters recorded sales of $782 million, a 21.4% gain.
Embracing Snacking
David Arens, division merchandise manager for the Army & Air Force Exchange Service (AAFES), which operates 589 Express convenience stores and 122 main stores, said salty snacks are the leading category, up 9% over last year for the chain.
“Since the beginning of the COVID-19 pandemic, stores have seen shoppers embrace snacking more,” Arens said. “As shoppers are staying home more or choosing to gather at homes, snacking overall has increased. Shoppers are also looking for the ready-to-eat convenience of snacks.”
Two-for offers continue to do well at c-stores across the nation as well as at Express stores. Secondary displays and shipper displays have provided a reliable lift in sales. Tie-in and cross-promotional offers such as snack-and-beverage combo deals have performed well.
Supply & Merchandising
With supply chain issues continuing, handling out-of-stocks has become a crucial task. Express stores work closely with vendor partners to know when product will be available and identify those that may be out of stock for an extended period. Retailers are supplementing inventory levels by exploring alternative vendors and making one-time buys for new brands, which also increases assortment variety.
As supply chain issues and inventory strains continue to pose challenges, Arens said stores are staying flexible and creative to keep shelves stocked and continue providing shoppers with the products they want.
“The snack industry is forecasted to continue growing,” Arens noted. He expects to see better-for-you snack items such as gluten-free, low-sugar and organic snacks continue to drive categories.
Promotional offers and execution will continue to serve as the drivers of snack sales increases, Arens said.
“Ensuring clear, attractive and well-placed signage for promotions will help,” he said. “Creating promotional events to tie in categories such as chips and a roller grill item help increase the basket.”
The snack category will continue to see so-called ‘aspirational foods’ making waves within the industry. With consumers striving to better themselves, more organic options will also become easier to access, as well as more options with nutritional callouts, like protein, collagen, low-sugar, low-fat and low-sodium.
Consumers today are better educated than they’ve ever been, and they expect the brands they support to align with their heightened expectations.
