According to IRI, market research firm, shoppers who receive federal food assistance have driven double-digit growth in retailers and manufacturers for the last year. But, they are under increasing pressure to spend more.

Some individuals who can qualify for the Supplemental Nutrition Assistance Program are not working. Some are employed at minimum wages, while others work part-time and have to care for their children. The rising costs of transportation and raw materials are causing shock in the grocery stores, due to congestion at ports and truck driver shortages.

Stimulus checks have largely been spent — and no additional ones appear on the way.

Consumer packaged goods firms will also feel the pinch when this funding source for pandemics ends, IRI research revealed on Tuesday. These companies will be losing out on $3 billion in monthly spending by SNAP customers. The spending power of these shoppers is decreasing. even as the Biden administration increased food assistance earlier this monthAnd families received child tax credits.

Sally Lyons Wyatt is an executive vice president at IRI and a practice leader in food and drink. She said that economic headwinds such as inflation are going to “hit these houses more than anybody else.”

SNAP drives sales for large grocers such as KrogerBig-box players such as WalmartAnd discount chains such Dollar GeneralAldi. About 16% of households across the U.S. — 42 million people in total — participate in the SNAP program. IRI’s research shows that SNAP customers drive 12% in food and beverage sales both online, and in store.

This group’s impact has grown over the past pandemic. According to IRI, SNAP shoppers accounted for 19% more dollar growth in food and beverages retailers over the 52-week period ending Sept. 5. This was compared with the previous year. Comparatively, non-SNAP consumers drove only 1% dollar growth over the same period.

Lyons Wyatt said food and beverage companies and retailers must come up with new approaches to serve shoppers who need budget-friendly ways to feed their families — or risk losing a significant chunk of business. They should also consider smaller packs and more affordable food bundles, like a low-priced meal kit. Some retailers might want to offer different price points for the same item. For example, canned beans or soups in a higher value category than a premium and standard one.

She cited the creative ways grocers have helped families to eat well on a tight budget by offering healthy recipes using simple ingredients and sponsoring community gardens for children.

Companies will be losing sales in the long-term if they ignore this customer group, she stated. She stated that SNAP customers are more loyal than other shoppers and will continue to shop with the same brand. She said that catering to families participating in SNAP could be a great way to present yourself to potential consumers as many households are young with children and teens.

She stated that you will be set up to enjoy a lifetime of consumer value propositions if your interest is not piqued.