IRI: Retailers Can Offer More Private Label Products to Attract SNAP Customers

For retailers looking to target customers who receive Supplemental Nutrition Assistance Program (SNAP) benefits, “bolstering” private label offerings is a great technique, according to IRI.

The data firm’s latest blog, Ten Ways to Better Meet the Changing Needs of Snap Shoppers, was written by IRI’s Sally Lyons Wyatt and Jay Kirkus. The blog details how retailers can better cater to the 16% of households nationwide who receive SNAP benefits.

IRI says that SNAP shoppers accounted for 13% of total food and beverage dollar sales in 2021, and account for one point less (12%) year-to-date in 2022. With inflation continuing to impact consumer spending, especially ahead of the holiday season, low-income shoppers are continuing to flock to private brands. 

According to a 2021 study by the Private Label Manufacturers Association, private brands were highly rated by SNAP recipients, with ​​24% of the shoppers in the study reported they buy mostly store brands when they use their benefits to buy food products.

“While SNAP consumers remain more loyal to national brands than shoppers overall, they have started to turn to more private label to save,” wrote IRI. “SNAP shoppers currently spend 50% or more of their dollars on private label on baking, dinner, dessert, breakfast and prepared foods occasions. These categories in which brand image typically doesn’t matter as much hold particular promise with brand-conscious SNAP shoppers.”

Other ways to target SNAP shoppers include providing entry price point options, offering more precise promotion timing based on price spikes, developing a SNAP channel strategy, catering to growing SNAP-ineligible categories and more.

The full blog from IRI can be found here.