MAHA SNAP restrictions on junk food could change spending

Key Points:

• The U.S. Department of Agriculture has approved SNAP food restriction waivers in 23 states, impacting about one-third of SNAP participants and potentially reducing food and beverage sales by $830 million this year as consumers adjust their purchases.
• Restrictions mainly target sugar-sweetened beverages and confectionery products, prompting major food companies like Hershey, Kraft Heinz, PepsiCo, and Nestle to monitor shopper behavior and consider product reformulations.
• Iowa became the first state to codify elements of the "Make America Healthy Again" movement into law, focusing on artificial food dyes and ultra-processed foods in schools and SNAP purchases to promote healthier eating among low-income families.
• Some companies, such as J.M. Smucker, expect limited impact from the SNAP changes so far, though broader restrictions could affect products like snack cakes, while others like Hershey are actively researching consumer responses to new rules.
• The SNAP restrictions coincide with a decline in beneficiaries—estimated at 3.5 million fewer people since 2022—and food manufacturers are also responding to health initiatives by reformulating products to reduce synthetic ingredients and artificial colors.