How The Cost-of-Living Crisis Will Impact Snacking
Turn on the news, read a newspaper, browse Twitter or any other news source, and you’ll find an article or a story about the growing Cost-of-Living Crisis. Everybody’s talking about it – particularly consumers.They are beginning to feel the pinch and are expressing their concerns at rising prices across online and social platforms on a day-to-day basis. Since the start of 2022, we’ve seen a 72% increase in US online consumer conversations related to economic anxiety. All CPG product categories are affected as prices begin to rise, and consumer behaviour begins to change. How is this effecting Snacking brands? Let’s find out… What’s happening in snacking? Using TRENDSCOPE, our end-to-end insight and innovation platform, we’ve tracked and analysed how over 69 million consumer conversations and 12,000 trends are being influenced by the Cost-of-Living Crisis. There has been a 56% increase in economic discussion connected to Snacking. As inflation continues to rise, consumers are vocalising their changing preferences and behaviours. But it’s not all bad news. While many consumers are looking for ways to save pennies, others are driven by much more nuanced sets of needs and motivations. There are products and brands for which people are justifying the price-tag. Growth territories in which consumers focus on affordability, not cost. Where the benefits or value of the product outweigh the expense. These are the areas in which Snacking brands have an opportunity to innovate. Where can snacking brands innovate? The chart below depicts the ten biggest growth drivers in Snacking. If you look closely, we’ve detailed the economic scrutiny within each of these drivers. While products related to Desire for Natural and Mental Wellbeing are driving the highest volume of price-based conversations, they’re also driving most of the dialogue around value and justifying the price-tag. These are two spaces in which consumers are willing spend despite their financial concerns. This is where they perceive value to be. And as such, these are the growth areas in which Snacking brands should innovate to keep up with consumers over the coming 12 months. Download the full report Our team of Insight & Innovation Consultants have put together a full report on how Snacking brands can innovate during the Cost-of-Living Crisis. It includes three strategic recommendations for how to innovate within the Snacking category, including: Which ingredients to include in future new product development How to position Snacking brands in line with consumer preferences How to optimise your current product portfolio and unlock greater sales Download the full report HERE
