Is a ‘snacking recession’ happening?

With 401(k) balances sinking like the Titanic and the threat of huge price increases due to tariffs, Americans are becoming budget conscious in a hurry. This is affecting consumer spending, and one area feeling the pinch is the snack industry. This trend began late last year, with companies reporting disappointing sales numbers across a wide swath of snacks and beverages.

Potato chips/crisps, soda, nuts, dips, you name it – all are experiencing a decline in sales. In addition to the economic situation and price hikes, another culprit is being credited with the reduction in snacking: GLP-1 medications. As more people turn to these appetite inhibitors to lose weight, it seems inevitable that people would purchase fewer candy bars and salty snacks. Research conducted by Cornell University found that households with at least one GLP-1 user reduced their food spending by 5.5 percent on average, with higher earners spending even less.

This has snack companies pivoting to new options as people pass over sweets and impulse buys at the checkout. Some are turning to protein drinks, one category that still seems to have positive momentum. With more than 25% of Americans considering trying a GLP-1 medication this year, it seems that a snacking recession is bound to continue. This is not necessarily bad (unless you are the CEO of a snack company), as people might turn to less processed foods.

I am a not a huge snack eater (desserts are another story), although I usually keep a bag of pretzels and some nuts around to nosh on when I am feeling peckish. I have not yet encountered a price hike large enough to dissuade me from buying either of these items. What’s your snacking situation like?