Vending

Pandemic slows demand for snacks in US

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June 19, 2020

U.S. demand for snack food is forecast to grow 2.7% yearly in nominal terms through 2024, according to “Snack Foods: Unites States,” a report recently released by Freedonia Focus Reports.

For 2020 in aggregate, demand is expected to grow at a slower pace than it otherwise would have due to the COVID-19 pandemic as the economic impact forces consumers to become cautious spenders, according to a press release. During the early months of the pandemic, increased snack food purchases were observed as people ate more snacks while confined to or working from home and in some cases stockpiled snacks, supporting demand. However, various commercial businesses (e.g., amusement parks, movie theaters, sports venues), and institutions and offices — where snack foods are sold in vending machines — were closed for some considerable period of time in 2020, hampering sales.

In addition, many consumers are exercising caution in spending for home consumption due to economic uncertainty and loss of employment. Furthermore, many consumers are ordering groceries online, limiting opportunities for impulse buying in stores. The increase in working from home also reduces opportunities to stop in convenience stores located in gas stations or busy intersections to purchase snacks.

New product offerings featuring healthier profiles or factors such as novelty and nostalgia for childhood snacks will drive demand. Population growth and rising disposable personal incomes will also underlie advances. However, market maturity and ongoing concern over the nutritional content of snacks will continue to curb additional demand growth.

For an update on how the coronavirus is affecting convenience services, click here.