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US snack purchases fall as tariffs and inflation drive indulgence cutbacks

US consumers are reducing their snack purchases as (fears of) tariffs and sustained inflation drive up food costs and force households to prioritise spending.

Items such as chips, cakes, and confectionery are increasingly viewed as occasional treats rather than regular purchases, while nutrient-dense formats and value-driven choices gain ground.

Tariffs add pressure to already strained food budgets

A March 2025 survey by Mintel found that 72% of US consumers expect tariffs to increase the price of everyday goods.

This followed weeks of escalating and de-escalating tariff hikes and proposals, which have left concerned consumers with food and drink as a top area of worry.

Economic outlook data supports this shift. US management consulting firm Bain & Company’s consumer health update for April 2025 showed that upper-income earners, who account for over half of US discretionary spending, registered their lowest confidence score since early 2020.

While spending intent rose slightly as some consumers sought to front-load purchases before further increases, the longer-term trend points to caution.

Fewer experiments, more value

Mintel found that 33% of consumers had already reduced spending on non-essential food and drink by March 2025. Just 23% reported a financially healthy situation with money left for luxuries or savings, while 48% said they were struggling or in trouble financially.

“Brands [must] justify their value as US consumers write new equations for what's worth the price,” said Jenny Zegler, director of Mintel Food & Drink.

Mintel expects economic pressures to dial down flavour experimentation and elevate modular meal components as value-driven shoppers seek versatility and simplicity.

According to Melanie Zanoza Bartelme, associate director at Mintel Food & Drink, perceptions of indulgence are also changing. “Products such as chocolate, coffee, and even bananas may become ‘luxury’ items. The market for those products may shrink to the most dedicated core consumers,” she said.

Demand for health-focused snack formats increases

Consumers are shifting towards snacks that offer nutritional value. According to an April consumer digest report from retail data insights company 84.51°, vegetable-based snacking increased significantly, with 66% of consumers reporting consumption in 2025 compared with 48% in 2024. Fruit and cheese also grew in popularity, while chocolate and candy held steady.

Protein is the leading nutritional attribute for healthy snack buyers, cited by 47% of respondents. Low sugar, absence of artificial ingredients, and clean-label claims were also important factors.

Shoppers are also increasingly deal-focused. Half reported buying more products on promotion compared with the previous year, and 46% said they are using more coupons.

Manufacturers report declining snack category sales

Large food manufacturers are seeing the impact of tighter consumer budgets.

In March 2025, US food company General Mills reported lower sales of salty snacks. On an earnings call, chief executive Jeff Harmening linked the downturn to “prolonged value-seeking consumer behaviours and volatility in the operating environment”.

Other packaged food companies have suffered similarly from this trend.

FMCG company PepsiCo, among the largest global snack producers, stated that its North America savoury snack performance was “subdued” and attributed this to consumers becoming more value-conscious across brands and channels.

“As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs,” said chief executive Ramon Laguarta on an earnings call reported by Dow Jones Newswires.