2023 SNAP Survey: Do Beneficiaries Boost U.S. Consumer Packaged Goods Market?

2023 SNAP Survey

A new study by Numerator sheds light on consumers’ shopping habits participating in the Supplemental Nutrition Assistance Program (SNAP). The survey analyzes the behavior of SNAP recipients and their impact on the consumer packaged goods (CPG) market.

The study finds that SNAP consumers account for nearly one-quarter (24%) of total CPG spend and are more likely to have children, live in urban areas, and have lower purchasing power than non-SNAP consumers. However, when SNAP consumers utilize their benefits during a shopping trip, they tend to spend more, with an increase in basket size and units per trip.

2023 SNAP Survey
The 2023 SNAP Survey also reveals that compared to non-SNAP households, SNAP households are more likely to be Black/African-American or Hispanic/Latino (PHOTO: Bloomberg.com)

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Despite the increase in spending, units purchased per household by SNAP recipients are down significantly in snack categories. This may be because 26% of SNAP recipients are not able to buy enough food to feed their families. Additionally, 20% of SNAP recipients say they wish grocery delivery services made it easier to utilize their program benefits.

Another interesting finding is that during the latest quarter ending Dec. 31, 2022, SNAP consumers paid 13% more per unit compared to 11% more for non-SNAP consumers. This difference is driven by increased inflation on baby and health & beauty products that SNAP consumers over-index on, as well as the dollar channel.

The study indicates that while SNAP consumers may face financial burdens, 79% say their financial situation is the same or better than the prior year. However, one in five are still overwhelmed by financial obligations while 56% are concerned about job stability.

In conclusion, the 2023 SNAP Survey shows that while SNAP consumers may face financial challenges, they significantly impact the CPG market. Retailers who accept SNAP payments can benefit from SNAP consumers’ increased spending and basket size. Additionally, addressing the challenges SNAP recipients face in accessing food and utilizing their benefits can help ensure they can feed their families and support their local grocery stores.

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