Conagra Says AI and Health Trends Are Influencing U.S. Snack Choices

Conagra Brands (NYSE:CAG) said artificial intelligence tools are becoming part of the way U.S. consumers choose snacks, as shoppers increasingly look for products offering specific nutritional attributes, flavours and ingredients.

The food company, whose brands include Slim Jim and Hunt’s, based its findings on research that included more than 53 million shopping transactions covering 17,000 products in the U.S. snacking market.

Conagra’s research puts annual retail sales in the sector at $198.2 billion and indicates that the category is growing around 1.4 times faster than the broader food market.

The company said changing attitudes towards health, including increased consumer attention to weight management, are influencing purchasing patterns. Conagra also cited the growth of weight-loss drugs and the White House’s “Make America Healthy Again” initiative as factors affecting the broader consumer environment.

Protein and Functional Snacks Gain Consumer Attention

According to Conagra, consumers are increasingly selecting snacks based on specific nutritional or functional objectives, including protein, fibre and energy.

The company said shoppers are also using AI tools when researching food purchases. Rather than searching only for individual products, consumers are asking digital tools to identify snacks that meet particular nutritional requirements.

“Snacks are playing a bigger and more personal role in consumers’ lives, whether someone wants a boost of protein, lasting energy, or a moment of comforting indulgence,” said Bob Nolan, Conagra’s senior vice president of growth science.

Nolan said changes in food consumption and shopping behaviour over the six years since the COVID-19 pandemic have been greater than those observed during the previous 50 years.

Younger Consumers Seek Different Flavours

Conagra’s research also identified changing flavour preferences, particularly among younger consumers.

The company said Gen Z consumers are contributing to demand for flavours including sweet-and-spicy combinations as well as tangy and briny products.

Ingredient composition is another factor receiving increased attention from shoppers, according to the research, alongside nutritional characteristics such as protein and fibre content.

“That’s why some of the traditional categories have been under pressure,” said Nolan, noting that cookies and salty snacks have struggled.

“The emergence of these more nutrient-dense snacks and snacking for purpose have started really growing and accelerating,” Nolan said.

The comments represent Conagra’s interpretation of consumer and transaction data and broader trends in the U.S. snacking market.

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