How C-Stores Are Adapting to Changing Snack Trends

Consumers are increasingly seeking out snacks with nutritional benefits and value-focused offerings as inflation shifts purchasing behavior.

Shifting Snack Trends

Snacking habits in the c-store space continue to evolve as consumers’ spending decisions and preferences shift amid rising costs and the rise of GLP-1 medications. Historically, salty snacks have dominated the category. And while that remains true today, the gap between salty offerings and healthy alternatives is closing each year.

While the salty segment is still performing well, notching a modest decrease of 0.6% in dollar sales compared to the previous year, according to c-store research firm Circana, adjacent segments like dried meat snacks and snack bars are overperforming in comparison.

Dollar sales for dried meat snacks, for example, increased 2.7% compared to last year, as snack bars, granola bars and clusters saw an uptick of 8.2%, signaling consumers’ desires for products with nutritional benefits like protein and fiber.

“One area that has stood out for us is snacking with more of a purpose,” said Walter Thomas, senior category manager at Northborough, Mass.-based Yatco, which operates 23 c-stores across New England. “Items like protein snacks, meat snacks, nuts and cheese are becoming a bigger part of that conversation. Customers still want something that tastes good, but they also want something that will hold them over. For us, the more interesting shift is what customers want out of a snack beyond just the next new flavor.”

Angelica Serna, category manager at TXB (Texas Born), which operates 47 locations across Texas and Oklahoma, is seeing a similar trend. She noted, however, that customers are still looking for their tried-and-true indulgences in addition to healthy options.

“I am seeing customers leaning towards more healthy options, but at the same time, we still have those customers that are looking for a splurge or a little treat to either jumpstart their day or as a midday pick-me-up,” said Serna. “So, I’m seeing regional flavors, I’m seeing indulgent flavors like hazelnut and honey, but then I’m also seeing a lot of protein bars that have double layered flavors or multiple layers to their flavor profiles.”

As better-for-you snacks continue to gain popularity, Richard Perry, senior category manager at Worcester, Mass.-based Nouria, which operates more than 300 stores across the Northeast and Southeast, said that alternative snacking options in their stores are performing particularly well.

“Meat snacks are growing for us, and we are launching a new rack that will have more space for sticks, which is where we are seeing a lot of growth and innovation,” he said. “These racks will roll out in Q4 for us, and we expect to see some great results. We expanded our nutrition bar sets in our Southern stores and are seeing substantial growth in the sub-category.”

Sweet and salty snacks, Perry continued, “continue to have sluggish sales, but are certainly being affected by inflation, rising gas prices and GLP-1 adoption.”

As retailers execute on their fall merchandising strategies, limited-time offers (LTOs) and seasonal promotions can help drive engagement, repeat visits and increased loyalty.

TXB uses these seasonal periods to “play around a little bit” with new products and LTOs.

“(LTOs are) really great as growth levers,” said Serna. “They kind of break up the monotony of a planogram, they drive urgency and trial, and of course, incremental dollars. They (allow you to) test out new flavors or seasonal offerings a lot easier in the snack category.”

Yatco’s Thomas mentioned that LTOs play a significant role in the chain’s strategy, allowing them to keep stores fresh and introduce more variety for customers. However, the rollouts, he emphasized, need to be intentional and focused.

“We need to be thoughtful about what we bring in, how much we buy and where we merchandise it,” said Thomas. “A seasonal item has a relatively short window to perform. We want to create excitement while making sure we are not carrying that inventory well beyond the season.”

Nouria is seeing success with LTOs specifically within its private-label line, My Nouria.

“Our My Nouria pumpkin cinnamon bun was a huge hit with our guests last year, and this year we have been selling even more than last year,” said Perry. “Seasonal items offer a great opportunity to delight our guests with both new items and classic favorites like apple and pumpkin flavors in sweet snacks.”

Value and Pricing Strategies

With inflation on the rise and consumers increasingly seeking out value from their snack purchases, price is becoming a key differentiator for c-store retailers.

“Price continues to be a significant factor. Customers are paying attention, and we need to give them options,” said Thomas.

Perry agreed, noting that value “has been the keyword that continues to get brought up in meetings with vendor partners and with data reports.”

At Nouria, the chain has leaned into bundling and meal deals to offer a value proposition that appeals to price-conscious customers. It is also experimenting with different pack sizes for snacks.

“Pack size is where we are seeing more customers trade up to take home sizes where they perceive more value,” said Perry. “We are looking for smaller pack sizes where it makes sense to offer a better entry-level retail and also for the GLP-1 adopters who still may want to indulge on an item but can’t eat a full size. We see channel leakage to club and dollar, so the consumer is seeking value in different ways.”

Yatco’s Thomas is also testing different pack sizes in an effort to add variety and value for snacking customers.

“A smaller package can help keep the purchase affordable, while a larger package or a well-planned promotion can offer value for someone buying more,” he said. “We cannot assume that every customer wants the biggest bag. Sometimes they simply want a good snack at a price they are comfortable spending today.”

Future Trends and Opportunities

Looking ahead, there are several key trends retailers should be keeping an eye on in the snack category. Chief among them is nutrition. Protein, fiber and explicitly stated health benefits continue to drive snack purchases across the U.S.

“I would watch the continued interest in protein and more filling snacks,” said Thomas. “That opportunity extends beyond protein bars into meat snacks, nuts, cheese and other refrigerated options. It challenges us to think about snacking across the entire store. We need to make those products easy to find and give them the same attention we give traditional snack categories.”

Another development to watch is the fact that customers are looking to snacks for an experience as opposed to a quick pick-me-up or treat.

“I think customers are going to continue looking for flavor experiences rather than just what they’ve been purchasing in the past,” said Serna.

In order to succeed in the snacks space, c-store retailers will need to reevaluate their assortment to include health-focused products and protein, combined with value-focused promotions. After all, Thomas said, assortment alone does not drive results.

“Thoughtful planning, competitive pricing and consistent execution in the stores all matter,” he said. “We also value the insights we get from our vendor partners. Those conversations help us identify opportunities, but we still need to look closely at our own customers and sales to understand what makes sense for our stores.”