Hot Topics Case Study: SNAP Restrictions' Impact on US Soft Drinks

This case study explores the impact of restrictions on soft drinks eligibility under the US' Supplementary Nutritional Assistance Program (SNAP) that are taking effect during 2026.

SNAP, commonly referred to as Food Stamps, plays a key role as a safety net addressing food insecurity in the US. However, criticism of its cover for purchasing less healthy products, including sugary soft drinks, has led to a growing number of states being granted bans on food stamps being used for a range of products. The impact of these "waivers" on the US soft drink industry is a present concern, with a need to understand how low-income consumers' behavior will change.

Report Scope

• Behavioral changes have been discovered from previous trials and experiments when SNAP excludes sugary soft drinks and other bad-for-you products.
• Lower-income consumers are highly likely to stop buying non-alcoholic drinks altogether when facing the need to save money overall, although they also are brand-loyal, cutting back rather than switching to cheaper options.
• Discounters face greater exposure to waiver impacts than other channels.
• Budget-consciousness in SNAP households may increase the attractiveness of packaging that emphasizes affordability, such as smaller, more affordable packs.

Reasons to Buy

• Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.
• Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.
• Access valuable strategic take-outs to help direct future decision-making and inform new product development.