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02/19/2021

Daymon: Private brands in key position to assist SNAP users online

Dan Ochwat
Executive Editor
Dan Ochwat profile picture

A new report from Daymon finds private brand opportunities can meet the U.S. consumers’ growing use of SNAP benefits, and it’s largely online where there’s a divide between wealthier consumers and those who can’t afford online fees and delivery costs.

The report, “Supporting the Needs of the SNAP & Value Shopper” said that last year, nearly $55 billion in food sales were attributed to the use of the Supplemental Nutrition Assistance Program. This year, President Joe Biden has increased SNAP benefits by 20%, a move that could provide food payment assistance to 12 million Americans, per Stamford, Conn.-based Daymon. 

However, the report noted that less than 5% of SNAP shoppers are able to afford groceries online due to associated delivery costs, fees and tips. A newly formed USDA Online Purchase Program is working to ensure that the technology and infrastructure necessary for running SNAP transactions online is safe and secure and the government has allotted $5 million to the program to support the technology needed for more retailers to accept SNAP and EBT payments online, the report said. 

With these advancements, Daymon’s report sees private brands playing a bigger role online for the everyday value they bring — if retailers can leverage them better on their online platforms.

80% of shoppers plan to continue to buy groceries online.

Some supporting research by Daymon (with the help of USDA.gov and Mercatus) in the report said that 82% of shoppers believe private brands are a better value for their money, and that 80% of shoppers plan to continue to buy groceries online.

The report also said that 77% of consumers buy private brands when they shop, so once online consumers are looking for value and want to buy store brands. The opportunity going forward, according to Daymon, is having retailers leverage the newly allotted money toward the USDA Online Purchase Program to make SNAP payments more accessible online and to get value-focused private brands front and center.

The report suggests improving mobile technology and click-and-collect services, as well as promoting private brand canned fruits and vegetables to help shoppers maximize spend. The full report was released this month and is part of Daymon’s Private Brand Consumer Series.

To read the full report on Daymon's LinkedIn page, click here