With consumer confidence plummeting this year, shoppers are cutting back on all sorts of purchases—even those normally irresistible sweet and salty treats. Snack food sales are dropping as consumer products companies grapple with shifting consumption patterns.
Major companies in the CPG industry are experiencing declining snack sales, including General Mills, which reported a 5% drop in net sales for its third quarter and lowered its outlook for the year.
“Our third-quarter organic net sales finished below our expectations, driven largely by greater-than-expected retailer inventory headwinds and a slowdown in snacking categories,” said General Mills Chairman and Chief Executive Officer Jeff Harmening.
J.M. Smucker, which owns Hostess Brands, reported a third-quarter 7% drop in sales of sweet baked snacks. Campbell’s Company, which makes Goldfish crackers, lowered its full-year forecast due to weak demand for snacks.
From immersive experiences, dynamic pricing, and appealing to the conscious consumer, 2025 will be a year of personalization for CPG brands.
Inflation soared during the pandemic and while there have been some signs of prices stabilizing, prices continue to climb for meat and other items. In March, consumer confidence dropped to its lowest level since 2021, The Conference Board reported Tuesday.
Consumers are buying staples more than discretionary items and looking for value, Harmening reportedly told analysts.
While some price-sensitive shoppers are opting for private-label branded snack foods, others consumers are trying to reduce their salt and sugar intake. Health and wellness is a growing concern for many, PepsiCo CEO Ramon Laguarta told analysts in February.
The company reported that North American sales volumes for both Frito-Lay snacks and beverages fell 3% in its fourth quarter, according to an Associated Press report. However, it’s confident that lower prices and healthy options like Pepsi Zero Sugar and chips without artificial flavorings will position the business for growth.
Consumers are more aware of what’s in the foods they eat, which is driving demand for snacks with wellness benefits, including plant-based items and snacks rich in protein, fiber and natural ingredients, the study found.
The consumer products industry also is keeping a close eye on the impact GLP-1 diabetes and weight loss medications such as Ozempic and Wegovy are having on snack food demand. The drugs’ popularity has some saying the industry needs to prepare for massive change in consumer consumption patterns.
EY’s survey of consumers found that consumption of snack foods among GLP-1 users dropped between 40% and 60% while their consumption of health and specialty foods increased 50%.
A study by Cornell and Numerator found that households with at least one GLP-1 user reduced their grocery spending by 5.5% within six months of starting the drug. Steep drops in purchases of calorie-dense, processed food items—including an 11% decrease in savory snacks—accounted for much of the reduction.
However, not everyone is convinced the medication will have an outsized impact on future snack and beverage demand. In a 2024 consumer products industry report, Deloitte noted that the number of people dropping out of GLP-1 “would likely diminish any GLP-1 drug impact on consumer product sales.”
Grocery retail trends in 2025 center around fresh food, omnichannel grocery, faster in-store checkout, and private label.
Companies are tackling changes in snack food buying in a number of ways, including focusing on affordability, value packs, flavor, and healthy options.
“We’re focused on improving our sales growth in fiscal 2026 by stepping up our investment in innovation, brand communication, and value for consumers,” Harmening said.
CPG companies have been releasing new versions of their products as well as brand-new items to appeal to health-minded consumers, including snacks packed with protein and mini sizes.
By incorporating technologies like AI, data platforms and predictive analytics, consumer products companies can bolster their operational efficiency to improve their ability to respond to emerging consumer trends. Advanced cloud tools provide real-time visibility into supply chain operations to improve strategic decision making and agility.
In its 2025 CPG industry outlook, Deloitte said the top risks involve geopolitics and supply chain disruption. “For consumer products companies, these risks warrant a focus on supply chain resilience and redundancy.”
