1 in 8 Americans are fed by SNAP (Supplemental Nutrition Assistance Program) — that’s a multi- billion-dollar shopper base looking to find food and beverage at a lower cost. How can private label reach them, and what are they looking for?
Private Label can make a significant difference for families and people in need
The Supplemental Nutrition Assistance Program (SNAP), originally known as the Food Stamp Program, is a federal assistance program in the United States that helps qualifying low-income people and families purchase food. The fundamental goal of SNAP is to reduce hunger and promote nutrition in low-income households. Since 2001, SNAP households have increased by 3% with over 42 million participants in the United States. State-by-state variations exist in SNAP eligibility; and while not all household participants are lower-income, purchases often go toward low-income households. Particularly, those with a household of five or more, those with a high school education or less, and households making less than $40,000. As SNAP use becomes more common, more groceries, farmers markets and even e-commerce shops are accepting SNAP as a form of payment. SNAP users are a multi-billion dollar shopper base searching for food and beverage at a lower cost — how can private label reach them?
18% of dollar sales for SNAP shoppers is attributed to Private Label brands, a little higher than 16% for non-SNAP shoppers
While affordability is a key factor, SNAP users also seek stability in terms of their food and non-food costs. They are interested in strategies and tactics that can help them close the affordability gap during volatile times. They appreciate ideas on how to liven up everyday meals and break the monotony. Overall, SNAP users are looking for affordability, stability, value, convenience, and variety in their shopping experiences.
5 Ways Private Label Brands Can Empower SNAP Shoppers
Meet SNAP Shoppers Where They’re at — Literally!
Private label brands should learn the channels via which SNAP shoppers frequently purchase and tailor their marketing strategies accordingly. Do they buy at physical grocery stores or order their things online for pickup or delivery? Private label brands can efficiently reach out to SNAP shoppers by identifying their preferred channels, and placing marketing materials and offerings accordingly.
Utilize Large Promotions at the Beginning of the Month
SNAP benefits are typically received at the beginning of each month — this is also when SNAP households tend to make their largest purchases. By bundling this time with store promotions, it can provide incentives for larger purchases and lead to more loyal shoppers. Additionally, promoting small packages that SNAP shoppers can afford without relying solely on supplemental benefits helps ensure that they have access to affordable options throughout the month.
Bundle Meal Deals & Convenience Products
Offering bundle meal discounts throughout the year rather than just during the holidays, helps to highlight your value proposition. Furthermore, concentrating on quick prep/convenience products that are filling and offering meal ideas might assist SNAP shoppers in breaking the routine of their daily meals and making their shopping experience more pleasurable and easy.
Education, Awareness, and Clear Labeling
Many SNAP shoppers may not be fully aware of the availability and benefits of healthy beverage options. Private label brands can play a role in educating and raising awareness among SNAP shoppers about the importance of consuming healthy beverages and the specific benefits of their products. This can be done through in-store signage, online content, and clear, communicative labels.
Offer an Array of Affordable, Nutrient-Rich Alternatives
Two sought after categories for SNAP shoppers a intersect in a beautiful way: carbonated beverages, and beverages that break the norm. Since SNAP benefits do not extend to vitamins and supplements — many SNAP users are searching for other ways to get those same benefits without breaking the bank.
Everyone deserves access to healthy, nutrient-dense foods — and private label is the most effective way to get there.
By embracing these approaches, private label brands can not only expand their customer base but also make a meaningful impact on the lives of individuals and families who rely on SNAP benefits.
SOURCES
Circana, LLC.
Circana scan panel 2023
Circana Complete Consumer Total US - All Venues, YTD 2023 W/E 12/3/23 Vo/Buyer Calculated
U.S. Department of Labor
USDA Food & Nutrition Service (FNS). BLS
https://www.fns.usda.gov/snap/thriftyfoodplan
https://www.fns.usda.gov/news-item/usda-0179.21
https://www.fns.usda.gov/pd/supplemental-nutrition-assistance-program-snap
NIQ Homescan Panel, Total Outlets, SNAP (APRIL/MAY 2023)
Latest 52 WE 07/22/23
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