Snacking in a Squeeze: Why treats thrive when budgets tighten

Times are tough right now. With rising prices, higher bills, and the cost of living continuing to climb, people are being more careful with how they spend their money. Big luxuries - like expensive meals out or designer items - are often the first to go. But there’s one thing people still make room for... small treats. 

Small affordable treats are now in focus

This is known as the “lipstick effect” — the idea that when money is tight, people still want to feel good, so they treat themselves in small, affordable ways. That might be a chocolate bar, a premium snack, or a favourite drink. It’s a little moment of joy that doesn’t break the bank. Instead, these small treats provide emotional value that far outweighs their price tag. 

Affordable escapism 

While overall spending is under scrutiny, shoppers are still carving out space for “treat occasions”. These are moments where they allow themselves a little extra - and snacking fits perfectly. It’s accessible, affordable, and often tied to positive rituals like movie nights, social gatherings, or self-care. 

Branded snacks hold their ground 

Interestingly, price-conscious consumers aren’t necessarily trading down. In fact, many are opting for trusted branded products over own-label alternatives when it comes to treats. The perception of quality and reliability makes branded snacks feel like a worthwhile indulgence, even when budgets are tight. 

What this means for retailers 

Convenience stores can lean into this behaviour by: 

• Highlighting treat-worthy snacks near the till or entrance 
• Offering round-pound pricing to encourage impulse buys 
• Stocking a mix of indulgent and better-for-you options to suit different shopper moods 

If you make your biscuits, confectionary and snacks ranges appeal to those seeking an impulse treat... a squeeze in customer spending doesn't need to mean a squeeze on your opportunities to sell.

Source: Mintel October 2025