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After three consecutive years of price increases, potato chip brands are starting to see pushback from consumers.
Earlier this month, PepsiCo reported a 0.5% revenue decrease in its Frito-Lay snack business due to a 4% volume drop compared to the same period last year.
With average potato chip prices above $6, why didn’t it happen sooner?
Analysts say this was in part due to the 25% increase in the food stamps program from 2021. One report found that in 2023, 42.1 million Americans were enrolled in the food stamp program, and bag snacks were the fourth most purchased item category, only behind soft drinks, fluid drinks, and milk.
PepsiCo plans to cut prices in particular parts of its snack portfolio, where consumers seek more value to keep buying.
