As the cost of goods trend upwards, there’s another trend called “treat culture” , which sees consumers splurging on various treats as a way to…”treat” themselves.
Many are holding back on big-ticket purchases like a house, an appliance or a handbag, but snack companies like Lay’s, and Pepsi are finding that consumers are not holding back on buying snacks, or “treats”.
The phenomenon, is based on the idea that treats act as a kind of pick-me-up to get one through the day by spending money on these small luxury snack purchases.
Bags of chips, cookies, and soda are the choice treats of “luxury”.
Perhaps it’s a way to retain some form of control in a time when the economy is pushing people to the brink of financial distress, and spending money on something frivolous as a bag of chips is a way to make consumers feel like they’re not feeling the heat.
“I’m going to fill my car up with gas, and I’m going to treat myself to a Mountain Dew and a bag of Lay’s. They want that affordable luxury because they still have some money in their pockets,” PepsiCo CFO Hugh Johnston told the Wall Street Journal.
PepsiCo increased prices by a reported 15% over the last couple of months but noticed it didn’t seem to stop customers from making continued snack purchases.
Likewise, McDonalds also raised their prices by about 10% to off-set “operational costs”, and the customers haven’t slowed down on visits. And Oreo’s sales have increased by a staggering 18%.
Market Research done by Circana Group found that Millenials and Gen-Z are both snacking up a storm, with three or more snacks over the course of a day. The trend with these age groups has been gaining ground over the past couple of years with snacking companies sales from this dynamic rising 11% in 2022.
At the end of the day, the cost of living is at an all-time high but that hasn’t stopped consumers from buying their cakes, and eating them, too. If anything, it’s increased the need to…
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