Snackpocalypse: Why are Americans ditching salty snacks?
The traditional snacks aisle – long dominated by chips, crackers, bakes and cookies – is undergoing a transformation; presenting both challenges and opportunities for producers.
According to IFIC’s survey, taste remains the most important factor influencing purchases for 85% of consumers, followed by price (76%). Healthfulness is rapidly catching up, ranking as a key driver for 62% of shoppers. Convenience is down (57% from 61% in 2023), as is the impact of environmental sustainability (31% from 39% in 2022).
Late-night snacking habits are also evolving. While 30% of Americans still prefer salty or savoury snacks to round off the day, a growing number are opting for healthier alternatives. More prefer fruits, nuts and seeds, and dairy, while fewer prefer cookies, cake, ice cream, doughnuts, or other pastries compared to the year prior.
Economic factors also play a role in shifting food habits. The IFIC survey found 90% of respondents have noticed food prices rising, leading many to reassess their spending habits. While convenience remains important for 57%, its influence is declining (down from 61% in 2023), as more consumers opt for fresh, whole foods over pre-packaged snacks. Surprisingly though, the impact of environmental sustainability on purchase decisions has also declined in each of the past two surveys (39% in 2022, 34% in 2023, and 31% in 2024).
Another major insight from the most recent survey is the growing link between food and mental wellbeing. Three in four consumers believe their diet impacts their mental and emotional health, while two in three believe the reverse – that their mental state influences what they choose to eat. This has fuelled demand for functional snacks, such as protein-rich bars, nut mixes, and yoghurt-based products that offer additional benefits like improved focus, stress reduction, and better sleep.
PepsiCo’s earnings report and the IFIC’s 2024 survey highlight a rapidly shifting consumer landscape. The once-reliable demand for traditional packaged snacks and baked goods is waning, driven by increasing health consciousness, economic pressures, and changing generational preferences. The snack industry is at a crossroads and producers need to adapt to evolving consumer expectations or risk falling behind.
PepsiCo is already taking action, according to CEO Ramon Laguarta. In the year ahead, the company will emphasise portion control, reduce sodium and fat content in its products, and eliminate artificial ingredients.
“The No. 1 solution for consumers to stay in our category is small portions of our favourites – ideally improved favourites with lower sodium, lower fat, and no artificial ingredients,” Laguarta said.
Additionally, functional snacks are becoming a key priority as consumers seek out products rich in protein, whole grains, and other health benefits. “If you think about how SunChips is innovating with whole grain and now legumes, we see a strong opportunity.”
PepsiCo is also investing in the rise of mini-meals, which Laguarta describes as “not only a value-driven decision … but a multiyear evolution of the category where more occasions, more calories are being eaten in small meals versus large meals.” He added, “That is something that will continue as consumers’ lifestyles evolve. We’re trying to create solutions for consumers in those moments of the day where they’re looking for a 200- to 300-calorie option that keeps them going.”
While PepsiCo remains confident in its ability to adapt, competition is fierce. More brands are entering the market with plant-based, protein-rich, and whole-food snack options, catering to the health-conscious consumer. The snack industry is experiencing a major transformation – one that will determine which brands thrive in the new landscape.
The question remains: Will Big Snack pivot fast enough, or are we witnessing a transformation in the way America indulges?
