Rising Financial Strain Spurs Shifts in Consumer Spending and Food Industry Strategies
Low-Income Americans Shift Spending Habits, Prompting Food Industry Strategy Overhaul
Americans who rely on government benefits for their groceries are cutting back on spending causing big food companies like Kraft-Heinz and Conagra Brands to change how they do business. Many people with low-income making less than $35,000 a year are cooking more at home or buying less food from stores. This change is affecting sales at places like Dollar Tree and Circle K convenience stores where sales to people using food stamps have dropped significantly.
To attract customers who cannot afford fast food anymore Conagra is introducing new cheaper products like chicken patties. People with lower incomes often buy less fresh produce and meat and are looking for good deals. So, companies like Hershey and PepsiCo are offering bigger bags of snacks at lower prices. Food companies are also promoting discounts more often now to attract customers back especially those who are looking for value.
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Low-Income Households – Food Giants Adapt with Discounts and Larger Portions (PHOTO: SaltWire)
Affordable Protein Choices Gain Popularity Among Low-Income Consumers
Despite facing financial stress low-income consumers are still buying proteins and filling snacks like corn based snacks and peanut butter. Sales of canned meats and corn based snacks are going up showing that people are looking for affordable and filling options. Companies like J.M. Smucker are seeing increased sales of their peanut butter which provides a cheap source of protein.
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