14 March 2011

The Truth About Food Costs

I wanted to share this article from Mark’s Daily Apple because I think it’s crucial for anyone who’s ever believed they couldn’t eat healthy because it’s “too expensive.” In reality, Americans a smaller percentage of their income on groceries than ANY OTHER COUNTRY. Why isn’t buying quality food a bigger financial priority for us?

From the article:

As many experts and commentators have noted over the years, Americans as a whole actually spend less on food than any other country when it comes to percentage of income. In the U.S., our average food expenses constitute about 9-12% of our income. In 1949, it was 22%.

By contrast, much of Western Europe today devotes 14-17%+ of their total household budget to food. In Pakistan, families spend an average of 46% of their income on food.

On top of this, there’s the breakdown of food spent for “at-home” consumption (i.e. groceries) versus “away” (i.e. restaurants, fast food). Of the roughly 10% of income Americans spend on food, more than 40% is spent eating out (PDF). (In Belgium, for example, that number is 25%.) That means a mere 6% of our income is spent on the weekly supermarket/farmers’ market haul. When you look at it this way, we see that average at-home food costs are roughly equal to average health care costs, utilities, entertainment costs, and vehicle purchases costs. That’s not combined, folks.

A few more facts? (PDF) The groups that spend the most on food per person are the most affluent households, one-person households, and older households (55-64). (Probably no surprises there.) Among the groups that spend the least are households headed by single mothers. Larger households and those with kids spend less per person, and smaller households spend more eating out. Northeasterns and Westerners spend more on food (both total food expenditure and eating out costs) than Midwesterners and considerably more (especially in terms of at-home food) than Southerners. Affluent homes devote a lower percentage of their (more substantial) income on at-home food but a higher percentage on eating out than lower income and middle income homes.

More income, however, doesn’t necessarily translate into better food purchased. Although the amount spent on items like eggs, pork, and vegetables rose in higher income homes in Belgium, for example, in the U.S. the items prioritized with increased income were fish, cheese, and sweets. In another international comparison, higher incomes in the U.S. were associated with a higher percentage of the budget spent eating out, whereas “away” food expenses stayed fairly level as income rose in Belgian households. (PDF)