SNAP benefits knocked down in March, cutting food and nonfood spending

The final elimination of extra Supplemental Nutrition Assistance Program benefits nationwide in March cut U.S. food and beverage aid by $23 billion annually, data shows.

That in turn has cut monthly food and beverage spending in SNAP households by about 35% of benefits cut, according to a news release from retail scan data analyst Circana, formerly IRI and The NPD Group.

For example, if SNAP benefits were cut by $200, the reduced food and beverage spending translates to about $70 less food and beverage spending per month, according to data from Circana.

“We continue to monitor changes in buying behaviors of SNAP households,” Alastair Steel, executive of client engagement for Circana, said in the release. “Over the coming months, SNAP households may reduce their discretionary spending more than they have to date to free up dollars for food and beverage purchases. The SNAP benefits cuts are still likely to impact food and beverage spending for these consumers in the months ahead.”

Related: How SNAP shopping behavior changed after emergency funding ended

With the cut in SNAP benefits, SNAP households have decreased their spending on nonfood items at over three times the rate of their spending on food and beverages, the release said. That is a reversal from their spending in the early stages of the pandemic when COVID-related benefits, including SNAP benefit enhancements, provided more discretionary spending money for these households, the release said.

The savings from reduced discretionary spending is now helping SNAP households purchase food at grocery stores and restaurants, the release said.

SNAP benefits can only be used for food and beverage purchases at grocery stores and other retail outlets, the release said. Even so, with the money saved from reducing nonfood purchases, SNAP households have increased their use of quick-service restaurants, the release said.

Pizza chains represented the largest share of their visits, and hamburger quick-service restaurants represented 18% of SNAP recipients’ spending and visits. The average eater’s check at a quick-service pizza chain is $8, and it’s $6.56 at a hamburger chain, making these restaurants an affordable option for SNAP households.