Amber Waves cover, September 2007
Amber Waves: The Economics of Food, Farming, Natural Resources, and Rural America

September 2007

| United States Department of Agriculture | Economic Research Service
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Data Feature Heading

Food Spending Depends on Age and Income

Photo: An older couple look at  a food item in a grocery store
By 2030, about 24 percent of the U.S. population will be age 65 or older, compared with 12 percent today. How will an aging population affect how much and what types of food are purchased? A new ERS report found that per person food spending increases until the head of household turns 65. For example, in 2004, households with a head age 25-34 had an average per capita household income of $19,401 and spent $1,918 per person on total food (food purchased in grocery stores and in restaurants and other eating places). In contrast, those with heads age 55-64 had an average per capita income of $31,914 and averaged $2,719 per person on food. After age 65, income and per person food expenditures declined.

Households with heads 65 and older, however, outspent younger households in some at-home food categories: cereal and bakery products, dairy products, and miscellaneous prepared foods. In the latter category, one of the biggest differences was for frozen meals. Households with a head age 65 or older spent about $21 per person per year on frozen meals versus $15 per person in households headed by someone age 55-64 and $11 per person in households with a head age 25-34.

Spending on eating out reflects lifestyles and income

 

Age of household head in years

Food item

25-34

35-44

45-54

55-64

65 and
older

 

Dollars per person, 2004

Total food

1,918

1,941

2,511

2,719

2,477

Food away from home

812

733

975

1,072

826

Food at home

1,106

1,208

1,536

1,648

1,651

Cereal and bakery

153

172

210

216

240

Meats, poultry, fish, and eggs

286

321

420

444

419

Dairy

120

138

167

186

193

Fruit and vegetables

189

197

260

299

316

Miscellaneous prepared foods

192

200

237

242

247

Source: USDA, Economic Research Service analysis of Bureau of Labor Statistics’ 2004 Consumer Expenditure Survey.

Fruit and vegetables is another category where households headed by older Americans outspent younger households. The largest dollar difference in the fruit and vegetable category occurred for processed fruit, where households with heads older than 64 averaged $61 per person per year versus $54 for households with a head age 55-64.

Will these patterns continue as today’s baby boomers and Generation X-ers age? Perhaps not. Aging brings some changes in food choices, but these choices are also shaped by life experiences and eating habits. Younger Americans may have formed different eating patterns than their grandparents did when they were young. This future generation of older Americans may have different eating patterns than today’s older generation.

For more information . . .

Food Spending in American Households, 2003-04, by Noel Blisard and Hayden Stewart, EIB-23, USDA, Economic Research Service, March 2007.


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