AI is changing how Americans choose snacks, says Conagra

By Alexander Marrow

LONDON, Sept 23 (Reuters) - Americans are increasingly asking AI what to snack on, according to Conagra Brands CAG.N, a shift the Slim Jim meat stick-maker says is helping fuel demand for higher-protein foods, bold flavours and products tailored to specific health goals.

Driven partly by the rapid rise of weight-loss drugs and the White House's "Make America Healthy Again" initiative, consumers are seeking healthier food options more than ever.

Conagra, which also makes Hunt's ketchup, worked with research firm Circana to analyse more than 53 million shopping transactions covering 17,000 products across the US snacking sector. The sector generates $198.2 billion in annual retail sales and is growing about 1.4 times faster than the broader food market.

More has changed in how Americans eat and shop for food in the six years since the COVID-19 pandemic than in the previous 50 years, said Bob Nolan, Conagra's senior vice president of growth science.

"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," Nolan said on Wednesday.

Health trends are only part of the story. Conagra's research found that younger consumers, particularly Gen Z, are driving demand for bolder flavours, from sweet-and-spicy combinations to tangy and briny snacks.

Consumers are also examining ingredients more closely and increasingly using AI tools to guide purchasing decisions, Conagra said. Rather than searching for a specific product, shoppers are asking for snacks that meet particular needs, such as higher protein or 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.