The SNAP Rollercoaster: A dunnhumby Special Report on Hunger in the U.S.
In March 2023, pandemic era emergency allotments ended for the Supplemental Nutrition Assistance Program (SNAP). This will reduce grocery purchasing power for 22.5 million American households and increase food insecurity for 43 million Americans. How much will their purchasing power be reduced? In March of 2022, the average SNAP household received $439 in SNAP benefits, and the Center on Budget and Policy Priorities (CBPP) estimates that number was $342 in March of 2023, the first month after the emergency allotments ended.
This will conclude a SNAP benefits rollercoaster ride for SNAP participants, one that began in April of 2020. And while that $97 reduction in monthly SNAP benefits compared to the same time last year might not seem like a lot, the average SNAP household’s monthly net income (after taxes and deductions) is $398. When your monthly disposable income, between SNAP and other income streams, is around $836, and a shocking 30% of your disposable income goes to food, $97 less means: more skipped meals, smaller meals, cheaper, less healthy food, skipped medication, delaying or forgoing medical care.
Knowing that in some point in their lives, 20% of Americans (or 80 million people) have been on food stamps, Retailers that can be part of the solution by providing customers with strategies and tactics that meet their needs better than the competition will be building loyalty with a group of customers that over time will represent a sizable portion of the grocery market.
Download our special report to learn more about the current/former SNAP segment and see who is best positioned to win their loyalty and limit significant grocery sales loss due to SNAP reductions in 2023.