CHICAGO — Based on the numbers alone, the value of the Supplemental Nutrition Assistance Program (SNAP) to consumers receiving its food dollars and to the food industry is tough to overstate, a new study from market research firm Circana shows.
More than 1 in 8 Americans are fed by SNAP, according to Circana’s Understanding the Resilience of SNAP Shoppers report, released last week. Through September, 41.5 million Americans participated in SNAP on average each month, down 1.7% from 42.2 million in 2023. And of those SNAP households, 79% included at least one family member who’s a child, an elderly adult or an adult with a disability, the Chicago-based researcher reported, citing data from the US Department of Agriculture’s Food and Nutrition Service (FNS).
Among SNAP households, 58% have just one person and 42% have multiple members receiving benefits. Sixty-seven percent of the single-person households include an elderly adult (44%), a disabled person (21%) or a child (2%) — illustrating these recipients’ reliance on the program. Similarly, 96% of the multi-person households include a child (83%), a disabled person (16%) or an elderly adult (14%).
Key to household budget
A closer look at SNAP benefit dollars underscores their importance to household budgets. In the period examined by Circana, the average monthly household SNAP benefit was $297, a total that swelled to $515 for households with a child, based on FNS data. For households with an elderly adult, the average monthly benefit was $158, compared with $231 for households with a disabled person.
Meanwhile, SNAP dollars supplemented monthly household incomes by an average of 31%, with the percentage rising to 41% for households with a child, Circana reported. The SNAP monthly dollar supplement was 15% of income for households with an elderly adult and 20% for those with a disabled person. Excluding the benefit, average monthly income for all SNAP households stood at $969, compared with $1,222 for households with a child, $1,071 for those with an elderly adult and $1,182 for those with a disabled person.
Circana noted that fiscal 2025 will include cost-of-living adjustments for SNAP, which will raise the maximum allotments for the contiguous 48 states, the District of Columbia, Alaska, Guam and the US Virgin Islands. The COLA change, however, will decrease the maximum allotment for Hawaii.
The latest data from FNS, through Oct. 11, show the number of SNAP participants at nearly 42.22 million, up 0.5% year over year. Based on data through Nov. 8, the SNAP household count was 22.48 million, up 1.1% from a year earlier, and the average monthly benefit stood at $358.19 per household and $190.75 per person, according to FNS.
“SNAP participants have shown incredible resilience over the past year, even in the face of continued economic challenges,” said Sally Lyons Wyatt, global executive vice president and chief adviser at Circana. “With 1 in 8 Americans relying on SNAP for their nutritional needs, this group represents a critical segment for retailers and manufacturers.”
Outsized food spending patterns
With fewer households participating in SNAP, due to changes since the pandemic, the program’s share of marketplace dollars remains significant but has declined, Circana said in its report.
Across all US retail outlets, SNAP household dollar share fell 4.6 percentage points year over year to 19% for all eligible products in the 52 weeks ended Sept. 8, based on Circana sales data. SNAP household dollar share in food and beverages was down 5.7 percentage points to 21% — reflecting 22% share in CPG food and beverages (down 5.2 percentage points) and 19% share in foodservice (down 4.6 percentage points) — versus a 4.4-percentage-point decrease to 20% for nonfood consumables.
Still, Circana’s study found that SNAP households outspent their non-SNAP counterparts across all consumable product categories, by 6% in dollar sales per buyer and 26% in unit sales per buyer.
In food and beverages, SNAP households spent 18% more in dollars (including 26% more for CPG food and beverages and 3% more for foodservice) and 26% more in units (including 34% more for CPG food and beverages and 15% more for foodservice) than non-SNAP shoppers. For nonfood consumables, SNAP customers spent 12% more in dollars and 32% more in units.
By store section, dollar share for SNAP households over the 52 weeks ended Sept. 8 was 32% for general food, 21% for refrigerated, 17% for beverages, 12% for frozen, 8% for produce and 2% for deli (non-prepared items only). Produce was the only area showing both dollar and unit sales gains.
SNAP purchases over that period, unsurprisingly, skewed more toward food items than did non-SNAP purchases, including 22% in general food, 22% in refrigerated, 23% in frozen, 20% in produce, 19% in deli (non-prepared items only) and 24% in beverages, Circana said.
Among Circana’s top-ranked categories, only baking products, fresh fruit and fresh vegetables had increases in dollars, units and product trips per buyer among SNAP households. Baking led the way with SNAP gains of 6% in dollars, 3% in units and 6% in trips, though the bakery products category saw decreases of 1% each in dollars and units but a 2% uptick in trips.
Circana also named baking products among the SNAP household categories seeing growth for meal occasions, which also include pasta, fresh fruit and vegetables, condiments and sauces, dairy and drink mixes.
SNAP customers, though, didn’t exhibit any predilection for private brands. Nineteen percent of SNAP purchases were for private label, compared with 20% for non-SNAP shoppers. Likewise, Circana noted, non-SNAP customers outpaced their SNAP counterparts in private brand unit sales, up 5.5% versus 3.6%, respectively.
“We expect to see growth in many food and beverage categories driven by SNAP shoppers throughout the next year,” Lyons Wyatt said. “Successfully attracting, retaining and re-engaging them will require thoughtful planning and targeted strategies.”
Mass retailers gain share
Overall, SNAP shoppers made 22% more total product trips non-SNAP shoppers in the 52 weeks ended Sept. 8 — and 38% more CPG food and beverage trips, according to Circana.
By retailer, SNAP consumer dollar share was 20% or more in five channels: dollar (34%), mass (25%), convenience (23%), drug (22%) and grocery stores (20%). SNAP dollar share in other venues was 18% at off-price stores, 17% at restaurants, 16% at warehouse clubs, 14% at pure-play online retailers and 13% at specialty stores.
Yet SNAP households have shifted their spending in the CPG food and beverage market more toward club, dollar and mass stores and away from supermarkets, convenience stores, online retailers and drug stores, Circana’s study revealed.
Grocery stores accounted for 42% of SNAP household spending in CPG food and beverages over the 52-week period, but that share dipped about 1 percentage point year over year. That compared with SNAP dollar shares of 23% for mass retailers (up 0.54), 11% for convenience stores (down 0.21), 9% for warehouse clubs (up 0.71), 5% for dollar stores (up 0.59), 1% for drug stores (down 0.15), 1% for online retailers (down 0.17) and 1% for specialty stores (up 0.11).
“SNAP households are spending more at club and dollar stores even as their spending at grocery, convenience and drug stores declined,” Circana said in the study.