AI Is Reshaping US Snacking Habits, Conagra Reports

American consumers are increasingly turning to artificial intelligence to guide their snacking choices, a behavioral shift that is accelerating demand for high-protein and functional foods, according to a new report from Conagra Brands (NYSE:CAG).

The maker of Slim Jim and Hunt's ketchup says shoppers are moving away from searching for specific products and are instead asking AI tools for snacks that meet particular needs, such as high fiber content or lasting energy.

A Shift to 'Snacking for Purpose'

Conagra's research indicates that this AI-driven approach is contributing to market pressure on traditional categories like cookies and salty snacks. Bob Nolan, Conagra’s senior vice president of growth science, noted that this change is part of a larger trend toward more intentional consumption.

"The emergence of these more nutrient-dense snacks and snacking for purpose have started really growing and accelerating," Nolan said. He added that how Americans eat and shop has changed more in the six years since the COVID-19 pandemic than in the previous 50 years.

Market Context and Consumer Trends

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The findings come as the U.S. snacking sector, which generates $198.2 billion in annual retail sales, is growing about 1.4 times faster than the broader food market. The report, conducted with research firm Circana, analyzed over 53 million shopping transactions across 17,000 products.

Several factors are fueling this evolution in consumer behavior:

• Health Consciousness: The rise of weight-loss drugs and public health initiatives are driving consumers toward healthier options.
• Demographic Shifts: Younger consumers, particularly Gen Z, are creating demand for bolder and more complex flavors, such as sweet-and-spicy or tangy combinations.
• Ingredient Scrutiny: Shoppers are examining ingredient lists more closely and using technology to find products aligned with specific dietary or wellness goals.

"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. This shift suggests food manufacturers may need to adapt marketing and product development strategies to focus more on functional benefits rather than just brand names.