The Future of Commerce Podcast

Crunch, crunch: Snack food sales drop as consumers cut back; CP industry eyes Ozempic effect

Episode Summary

Snack sales are slumping—and it's not just the economy. In this episode, we explore the perfect storm behind the sudden dip in snack consumption: rising prices, a growing wellness movement, and the unexpected impact of medications like Ozempic. From health-conscious consumers to AI-powered food innovation, this Deep Dive uncovers how the snack industry is rethinking everything from flavor to forecasting.

Episode Notes

Snack aisles aren’t what they used to be. In this episode—based on the article Crunch, Crunch: Snack food sales drop as consumers cut back—we explore the reasons behind a surprising trend: the decline of snack food sales among U.S. consumers. Major brands like General Mills, Smucker’s, PepsiCo, and Campbell’s are seeing dips in sales as shoppers respond to economic pressures, prioritize health, and adjust their habits in response to GLP-1 medications like Ozempic. But this isn’t just a challenge—it’s a moment of reinvention. Hear how the consumer packaged goods (CPG) industry is doubling down on affordability, flavor innovation, and AI-powered consumer insight to adapt to a new era of snacking.

What You’ll Learn in This Episode:

1. The Forces Behind the Snack Slump

• Economic anxiety and inflation are driving down discretionary purchases
• Consumers are gravitating toward private-label snacks for affordability

2. Health & Wellness Trends Reshape the Aisle

• Demand for healthier snacks has “skyrocketed” per NIQ’s 2024 report
• Plant-based, high-protein, and low-sugar snacks are on the rise
• Major brands like PepsiCo are investing in cleaner-label reformulations

3. The Ozempic Effect: Appetite, Altered

• GLP-1 medications like Ozempic and Wegovy are curbing cravings
• Consumers on these medications are snacking less—and buying more health foods
• EY predicts a potential $12 billion impact on snack sales over the next decade

4. How the Industry Is Responding

• Emphasis on affordability: value packs, portion control, and pricing strategies
• Product innovation: reformulating existing favorites and launching wellness-first lines
• 72% of execs are prioritizing product mix strategy, per Deloitte

5. Tech as a Competitive Advantage

• AI and predictive analytics help forecast consumer trends and optimize operations
• Cloud-based platforms and data tools enable agile innovation and supply chain resilience

Key Takeaways:

• The decline in snack food sales reflects a deeper shift in consumer values and priorities
• Health and economic pressures are driving more mindful, value-focused purchasing behavior
• GLP-1 drugs could be a long-term disruptor—but their ultimate impact remains to be seen
• Brands are adapting through smarter pricing, better ingredients, and innovation at scale
• The future of snacking will be shaped by both human habits and machine intelligence

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