According to a recent Circana report, SNAP households have shown a significant spending trend. They tend to outspend their non-SNAP counterparts, opening up avenues for the federal benefit to boost growth in various food and beverage sectors throughout 2025. This finding is quite remarkable and holds great importance for the industry.

Uncover the Power of SNAP in Food Spending

Spending Patterns of SNAP Households

Circana's research indicates that SNAP households spend 32% more per person compared to non-SNAP households. This is despite the fact that this fiscal year was the first since the COVID-19 pandemic without extra SNAP allotments. Sally Lyons Wyatt, global executive vice president and chief advisor at Circana, emphasized this in an interview. Additionally, SNAP shoppers make 22% more store trips than non-SNAP households. While their trip frequency is higher, they spend less per visit. However, their focus on food and beverage spending is significant, highlighting the importance of SNAP.SNAP's accessibility is also on the rise as retailers and third-party e-commerce providers make EBT payment options more available both in-store and online. This allows more consumers to benefit from the program.

Influence of Private Brands on SNAP Shoppers

For the first time in recent years, Circana found that the increase in SNAP shoppers' spending was stronger for private brands than for name brands. This shows grocers' efforts to use private label brands to convey value and quality to customers have had an impact on their SNAP shopper base. With the reliance on both name and private label brands currently elevated for SNAP shoppers, Circana advises grocers to co-promote "occasion deals" that include both. This approach can increase SNAP participants' basket sizes while maintaining strong value messaging.

Differences in Category Performance

The report noted that performance varies depending on the category of goods. For example, refrigerated products like meals, desserts, and baked goods are losing both dollar sales and trips. This means retailers need to be cautious with pricing and timing of promotions. On the other hand, multicultural offerings, meat, and baby food are seeing increased dollars and units. This indicates that grocers can encourage the purchase of multiple units in these categories.In conclusion, SNAP's influence on food and beverage spending is complex and presents both opportunities and challenges for retailers. By understanding these trends, grocers can better serve SNAP shoppers and drive growth in their businesses.