Americans reducing snack purchases due to rising prices

Americans are buying fewer snacks like Doritos and Hostess cakes. This change is not about health but rather a result of rising prices. Many shoppers are feeling the strain on their budgets and are cutting back on non-essential items. According to a recent survey, 42% of consumers reported purchasing fewer snacks due to higher costs. Major food companies are noticing the impact on their sales. PepsiCo, for example, said snack purchases dropped by 3% last quarter. They attributed this decline to inflation and higher borrowing costs. Campbell's brands, including Goldfish, also saw a 2% decrease in snack sales. Similarly, JM Smucker, which owns Hostess, reported a 5% drop as consumers become more cautious with their spending. Overall, the sale of salty snacks and cookies has decreased slightly over the past year. This shift in buying habits extends beyond snacks to larger purchases like travel and clothing. Retail sales growth in the U.S. was weaker than expected, raising concerns about the economy and the possibility of a recession. Snack prices have risen faster than other grocery items. In the past two years, chip prices increased by 29%, compared to a 23% rise in overall grocery prices. For instance, a bag of potato chips now averages $6.50, up from $5.05 in February 2021. To save money, consumers are switching to store-brand products instead of pricier name brands. Many are also unhappy about downsized packages, a trend known as shrinkflation, where companies reduce the amount in a package while raising prices. In response, some brands, like PepsiCo, are temporarily increasing the amount of product in certain bags to attract customers who are frustrated with price hikes.