ERS Charts of Note

Subscribe to get highlights from our current and past research, Monday through Friday, or see our privacy policy.

Get the latest charts via email, or on our mobile app for Download the Charts of Note app on Google Play and Download the Charts of Note app on the App Store

Reset

Food prices were below overall inflation in 2021

Wednesday, February 23, 2022

Food prices overall increased by an average of 3.9 percent in 2021 compared to 2020, the highest annual increase since 2008. Food prices grew more slowly than the “all items” and transportation CPIs, but more quickly than all other of the “major groups” tracked by the U.S. Bureau of Labor Statistics (BLS). The CPI for all items rose 4.7 percent in 2021. Among the food categories that comprise the food CPI, the food-away-from-home (restaurant purchases) CPI increased 4.5 percent, compared with an increase of 3.5 percent for food-at-home (grocery stores or other purchases from food retailers). The highest price increases in food-at-home categories in 2021 were for beef and veal (9.3 percent), pork (8.6 percent), and fresh fruit (5.5 percent). Using the CPI data, USDA, Economic Research Service (ERS) researchers project overall food prices will increase between 2 and 3 percent in 2022. A five-year comparison of changes in major CPI categories is available in the Food Prices and Spending section of ERS’s Ag and Food Statistics: Charting the Essentials data product, and a time-series visualization of the data appears in the Food Price Environment data tool. More information on ERS’s monthly food price forecasts can be found in ERS’s Food Price Outlook (FPO) data product. The next FPO release is February 25, 2022.

U.S. per capita fluid cow’s milk consumption slid further during the 2010s

Monday, January 31, 2022

U.S. per capita consumption of fluid cow’s milk has been trending downward since about the mid-1940s, and it fell at a faster rate during the 2010s than in each of the previous six decades. Using dietary intake surveys collected between 2003 and 2018, USDA, Economic Research Service (ERS) researchers examined recent trends in milk consumption by looking at how individuals consumed the milk and consumers’ ages. Results confirmed that drinking milk as a beverage is the primary way that individuals of all ages consume fluid cow’s milk. These beverages include plain and flavored fluid milk as well as malted milk, eggnog, kefir, hot chocolate, and other milk-based beverages. On a given day in 2003–04, U.S. consumers drank about 0.57 cup-equivalents of fluid cow’s milk on average. Per person consumption of milk as a beverage fluctuated over the 2000s between 0.53 and 0.57 cup-equivalents per day. However, it declined over the 2010s, falling to 0.33 cup-equivalents in 2017–18. Over the study period, U.S. per person consumption of milk with cereal also fell by 0.06 cup-equivalents, with the steepest drop in consumption occurring among children. No significant changes were detected in the amount of milk that U.S. consumers pour into other, non-dairy beverages such as tea and coffee. This chart appears in the ERS report Examining the Decline in U.S. Per Capita Consumption of Fluid Cow’s Milk, 2003–18, released October 2021.

2021 retail food price inflation continued at same pace as 2020, but varied among food categories

Friday, January 28, 2022

Retail food prices increased by 3.5 percent in 2021, equal to the rate in 2020 and greater than the historical annual average of 2.0 percent from 2000 to 2019. Of the 12 food categories depicted in the chart, six showed slower price increases in 2021 compared with 2020. Dairy products and fresh vegetables, in particular, had significantly slower price increases in 2021 than 2020 and their historical averages. Dairy product prices increased at 1.4 percent in 2021 versus 4.4 percent in 2020 and fresh vegetable prices increased by 1.1 percent compared to 2.6 percent is 2020. Conversely, prices in six food categories increased in 2021 at a faster rate than in 2020 as well as in years prior. Prices for fresh fruits, for instance, increased 5.5 percent in 2021 compared to a 0.8-percent decrease in 2020 and a 1.6-percent average increase over the prior 20 years. Inflationary pressures differ by food category. For example, meat prices, which rose the most of any included product groups, have been driven up by strong domestic and international demand, high feed costs, and supply chain disruptions. Winter storms and drought impacted meat prices in the spring, and processing facility closures due to cybersecurity attacks affected beef and other meat production in May. USDA, Economic Research Service (ERS) researchers project that prices for food-at-home, or food purchased typically from grocery stores or other food stores, will increase between 1.5 and 2.5 percent in 2022, lower than the 3.5-percent increase that occurred in both 2020 and 2021. Forecasts for all food categories for 2022 are available in ERS’s monthly Food Price Outlook data product, updated January 25, 2022.

Inflation-adjusted monthly U.S. food spending in 2021 surpasses pre-pandemic levels

Friday, January 21, 2022

Total food spending in the United States generally follows seasonal trends. The lowest food spending levels usually occur in January and February, before rising in March and remaining at this higher level through August. Spending then drops from September through November before peaking during the December holidays. However, food economy disruptions following the onset of the Coronavirus (COVID-19) pandemic in early 2020 altered historical monthly food spending trends in the United States. The USDA, Economic Research Service’s (ERS) Food Expenditure Series tracks food spending beginning in 1997. The largest monthly decline in food spending (23 percent) occurred in April 2020, and monthly food spending averaged 8.3 percent lower in 2020 than in 2019. Overall, total U.S. food spending has consistently increased over the years, even when accounting for inflation. Average inflation-adjusted monthly expenditures were 23.2 percent higher in 2019 than in 2011. Though total food spending in 2021 has followed the typical pattern, spending began the year below pre-pandemic levels but surpassed previous years beginning in March. The data for this chart come from the ERS’s Food Expenditure Series data product.

Wheat and wheat flour prices surge, while prices remain stable for bread, cereal, and bakery products

Monday, January 3, 2022

Wheat prices at the farm level rose substantially in 2021, but these changes did not result in correspondingly higher prices for consumer products made from wheat. This disparity reflects the historical pattern most observable from 2005–12, wherein the degree of movement in prices of wheat products was markedly less than the more dramatic changes in wheat prices. Cash wheat prices in Kansas City, MO—the market price that most closely reflects the prices mills pay for wheat—were up by more than 30 percent in 2021 from the same time in 2020. Similarly, the Producer Price Index (PPI) for flour milling—a measure of how wholesale flour prices change over time—also rose, registering an 18-percent year-on-year increase in 2021. In contrast, prices U.S. consumers paid for wheat-containing products, as measured by the Consumer Price Index (CPI), for cereal and bakery products, is projected up 2 percent. This year-to-year increase is below the overall inflation rate for 2021 and similar to the previous year’s gains. The muted and lagged impact of the wheat grain price surge on consumer product prices is in line with historical precedent in which commodity prices usually represent a small share of the consumer food dollar that is spent on processed foods such as bread and pasta. This chart was drawn from “The Effect of Rising Wheat Prices on U.S. Retail Food Prices,” which appeared in the USDA, Economic Research Service’s November 2021 Wheat Outlook.

Unseasonably low October wholesale egg prices reported in advance of 2021 holiday season

Tuesday, November 30, 2021

Demand for table eggs tends to increase when holiday gatherings and cold weather encourage home baking and cooking. In accordance, wholesale table egg prices—the prices retailers pay to producers for eggs—tend to increase ahead of holidays such as Thanksgiving, Christmas, and Easter. Leading up to the 2021 holiday season, however, wholesale prices of table eggs in the United States have fallen as effects of Coronavirus (COVID-19)-linked flock adjustments linger. In normal years, producers anticipate seasonal demand by adjusting the size of the table-egg laying flocks and the rate at which they produce eggs. In 2020, COVID-19-related disruptions in the demand for eggs led producers to reduce flock sizes. Flock sizes have slowly rebuilt since the summer of 2020 but remain smaller than the same time in 2019. However, the younger flocks produce more eggs per hen. The higher productivity can offset the effects of the small flock size and support increased production. At the beginning of October 2021 the size of the U.S. laying flock was just above the October 2020 levels and the rate of lay was 1.1 percent higher. This productivity bump is predicted to support about a 1 percent increase in October 2021 table egg production compared with a year ago, leading to a 9.6 percent price reduction compared to October 2020. This chart is drawn from the USDA, Economic Research Service Livestock, Dairy, and Poultry Monthly Outlook, published November 2021.

Apple pie takes a larger slice of Thanksgiving food budgets in 2021

Monday, November 22, 2021

As U.S. consumers finalize their Thanksgiving menus, they might be curious to know how much ingredients will likely cost. If a homemade apple pie is on the menu, consumers can expect to pay about $7.32 for the ingredients, more than half of which ($4.22) is for apples. The same pie ingredients cost about $6.75 last year, meaning the total cost is 8.4 percent higher this year. The cost increase is driven by the price of Granny Smith apples, which increased from an average $1.26 per pound in October 2020 to $1.41 per pound in October 2021. Sugar, eggs, butter, and lemons also increased in price over the same period, while flour prices decreased. If the apple pie is served a la mode, plan to factor in an additional $0.31 per scoop, the same price as in 2020. USDA, Economic Research Service used average price data from the U.S. Bureau of Labor Statistics and USDA, Agricultural Marketing Service Weekly Advertised Fruit and Vegetable Retail Price data to derive the cost for the ingredients of an apple pie. The most recent data points are from October, meaning prices for Thanksgiving week may vary; savings may occur if grocers offer holiday discounts. Forecasts for aggregate food category prices can be found in the Food Price Outlook data product, which will next be updated on November 23.

Most U.S. counties exempt groceries from sales taxes

Friday, November 5, 2021

Foods purchased at grocery stores, supercenters, and other retail venues were exempt from sales taxes in 57 percent of U.S. counties in 2019. The remaining counties taxed food purchases at various levels across 18 states, mostly in the Southeast and Midwest. Alabama’s Tuscaloosa and Cullman counties had the highest grocery tax rate at 9 percent (4 percent State plus 5 percent county). Grocery tax rates not only vary across different States, counties, and cities, but they can also change over time. Using county-level tax data in combination with the USDA’s National Household Food Acquisition and Purchase Survey (FoodAPS), researchers at USDA, Economic Research Service (ERS) recently examined whether grocery taxes are associated with how much money U.S. households spend for food at retail outlets and restaurants. ERS found that grocery taxes were associated with differences in food spending among lower-income households that were eligible for the Supplemental Nutrition Assistance Program (SNAP) but did not participate in it. Among those households, researchers were able to associate taxes on groceries with reduced food spending at retail stores and increased food spending at restaurants. However, Federal law and USDA regulations stipulate that foods purchased with SNAP benefits are exempt from State and local sales taxes, and no such relationship was found among households participating in SNAP. This chart is drawn from the ERS report Food Taxes and Their Impacts on Food Spending, released September 2021.

Chicken products labeled 'raised without antibiotics' and 'organic' command higher prices than conventional chicken products

Friday, September 24, 2021

Processed chicken products whose labels show they were raised without antibiotics (RWA) were on average $2.23 per pound more expensive than conventional chicken products between 2012 and 2017, representing a 55-percent markup over conventional products. Processed chicken products include fresh or frozen chicken products that are cooked, marinated, breaded, or fried. A recent USDA, Economic Research Service (ERS) report shows consumer awareness of antibiotic use in meat and poultry production has increased over the past decade, and a growing market has emerged for chicken products that carry an RWA label. Though raising animals without antibiotics can be costly, producers can benefit from doing so when consumers are willing to pay higher prices for RWA products. Analyzing national household scanner data and a constructed dataset of chicken product labels, ERS researchers also found prices for organic processed chicken products were higher than those with RWA labels. From 2012 to 2017, prices for organic processed chicken products were on average $5.13 a pound more than conventional chicken products, representing a 125-percent total markup. These price differences suggest there are significant market opportunities for production practices that fall somewhere between conventional and the standards required for organic production. This information is drawn from the ERS report, The Market for Chicken Raised without Antibiotics, 2012-17, released September 2021.

Full-service restaurants experienced a sharp decline in the share of sales among food-away-from-home outlets in 2020

Friday, August 13, 2021

Full-service and limited-service restaurants (fast food restaurants)—the two largest segments of the commercial foodservice market—accounted for 70 percent of all food-away-from-home (FAFH) spending on average from 1987 to 2020. Consumers spent the other 30 percent at places such as hotels and schools. Full-service restaurants had the highest share of FAFH sales in every year of that period except 1995, 2010, 2019, and 2020. In 2020, the share of sales at full-service restaurants dropped from 36.5 percent in 2019 to 31 percent, resulting from a 29.4 percent decline in sales, partly because of safety closures during the Coronavirus (COVID-19) pandemic. Full-service establishments typically have wait staff and other amenities such as ceramic dishware, non-disposable utensils, and alcohol service. In contrast, limited-service restaurants, use convenience as a selling point; they have no wait staff, menus tend to be smaller, and dining amenities are relatively sparse. Given their minimal physical interactions with customers, fast food restaurants adapted to COVID-19 restrictions more quickly during 2020 and assumed a larger share of total FAFH sales at 42.7 percent, compared with 36.8 percent in 2019. Despite the increase in the relative share of FAFH sales, fast food sales decreased by 3.6 percent in 2020 compared with 2019. All other FAFH establishments, such as school and college cafeterias, reported a 17.9 percent decline in sales in 2020 and accounted for 26.3 percent of total FAFH sales. This chart appears on the USDA, Economic Research Service’s Market Segments topic page and its data come from the Food Expenditure Series data product.

Super stores retain the largest share of SNAP redemptions since 2006, while expanding participants’ purchasing power and maintaining store availability

Wednesday, August 4, 2021

Since 2006, super stores received more USDA, Supplemental Nutrition Assistance Program (SNAP) redemptions than any other type of store, totaling half of all redemptions in 2016. SNAP participants can redeem benefits to buy food items at super stores, supermarkets, grocery stores, and other types of approved food retailers. Super stores are defined as large food and drug combination stores and mass merchandisers under a single roof as well as membership retail/wholesale hybrids offering a limited variety of products in warehouse-type environments. USDA, Economic Research Service (ERS) researchers examined the effects of entrant super stores on the survival of existing SNAP-approved stores and their revenue from redeemed benefits. Researchers found that when one super store entered a market area from 1994 to 2015, about 0.25 supermarkets and 0.05 other smaller food retailers on average left over the first three years after entry. Overall store availability did not decline though, as the entry of one super store more than offset the loss of supermarkets and other smaller food retailers in the markets. The ERS researchers estimated that from 1994 to 2005, local supermarkets and other smaller food retailers annually lost $191,000 on average in SNAP redemptions for each super store entrant into their local market. That loss increased to $213,000 on average from 2005–15. At the same time, super stores gained much more in SNAP redemptions than was lost at local food retailers, leading the researchers to conclude that SNAP beneficiaries shifted purchases to super stores. Based on previous research showing that food is about 3 percent less costly at super stores, the researchers estimated that a shift of SNAP redemptions to super stores expanded the purchasing power of SNAP participants’ benefits by $108.6 million in 2015 (0.15 percent of total SNAP benefits and costs in 2015).This chart appears in the ERS’ Amber Waves article, “New Super Stores Slightly Expanded Purchasing Power for Participants in USDA’s Supplemental Nutrition Assistance Program (SNAP),” June 2021.

Most food categories have experienced slower price increases in 2021 compared with 2020

Wednesday, July 28, 2021

Retail food prices have increased 1.6 percent in the first six months of 2021, less than the rate over the same period last year (2.9 percent) and equal to the historical average over the same six months from 2000 to 2019. Of the 13 food categories depicted in the chart, 10 have experienced slower price increases so far in 2021 compared with halfway through 2020, while 5 categories trailed their historical midyear average price increases. In the first six months of 2021, prices for five food categories increased at a rate slower than in 2020 and years prior: eggs, dairy, fresh vegetables, cereals and bakery products, and “other foods.” Conversely, prices for three food categories increased in the first six months of 2021 at a rate faster than in 2020 and in years prior: fresh fruits (4.8 percent), fish and seafood (2.5 percent), and fats and oils (1.9 percent). Inflationary pressures differ by food category. For example, fresh fruit prices currently are increasing more than four times faster than their historical average rate because of low citrus supplies and increased exports. Prices may change during the remainder of 2021; in the second half of 2020, prices increased for all food categories except eggs and the category of beef and veal. USDA, Economic Research Service (ERS) researchers project food-at-home prices will increase between 2 and 3 percent in 2021. Forecasts for all food categories, including for 2022, are available in ERS’s monthly Food Price Outlook data product, updated July 23, 2021.

Share of income spent on food in U.S. dropped 10 percent in 2020 to historic low

Friday, July 2, 2021

During the Coronavirus (COVID-19) pandemic and economic recession in 2020, the share of U.S. consumers’ disposable personal income (DPI) spent on food decreased 10.1 percent from the previous year to 8.62 percent, the lowest share in the past 60 years. DPI is the amount of money that U.S. consumers have left to spend or save after paying taxes. The share of DPI spent on food in the United States was relatively steady over the last 20 years, decreasing from 9.95 percent in 2000 to 9.58 percent in 2019. Consumers spent 1.4 percent more of their incomes on food at supermarkets, convenience stores, warehouse club stores, supercenters, and other retailers (food at home) from 2019 to 2020, while they spent 22.2 percent less of their incomes on food at restaurants, fast-food places, schools, and other places offering food away from home over the same period. Changes in the shares of income spent on food in 2020 resulted, in part, from pandemic-related closures and restrictions at food-away-from-home establishments, as well as from the largest annual DPI increase in 20 years. The increase in DPI was driven by additional Government assistance to individuals in 2020, including stimulus payments to households and increased unemployment insurance benefits. The data for this chart come from the Economic Research Service’s Food Expenditure Series data product. See also the Amber Waves article Average Share of Income Spent on Food in the United States Remained Relatively Steady from 2000 to 2019, published in November 2020.

Cost of a home-grilled cheeseburger up 11 cents from 2019

Tuesday, June 29, 2021

For Fourth of July cookouts this year, cheeseburgers could be a bit pricier than they were in 2019. The latest available prices from May 2021 show the ingredients for a home-prepared quarter-pound cheeseburger totaled $1.89 per burger, with ground beef making up the largest cost at $1.03 and cheddar cheese accounting for $0.34. This same cheeseburger would have cost $1.78 to prepare in May 2019, an increase of 6.3 percent. Retail prices for one-pound quantities of all ingredients, except tomatoes, were higher in May 2021 compared with May 2019. USDA, Economic Research Service (ERS) is using 2019 for comparison because 2020 was an unusual year for food prices. Higher ground beef prices accounted for more than half the 11-cent increase between 2019 and 2021, while cheddar cheese costs were 1 cent more per burger in May 2021. Bread and iceberg lettuce prices rose the fastest—17.2 and 11.4 percent, respectively—but these ingredients represented a relatively small portion of the total cost of a burger. Bread and lettuce added 4 cents to a burger’s total cost in 2021. Tomato prices remained roughly the same over this period. This chart uses data from the ERS Food Price Outlook data product.

SNAP and P-EBT accounted for more than one-ninth of total food-at-home spending from April to September 2020

Monday, June 7, 2021

Shutdowns, stay-at-home orders, and the need for social distancing led households to buy more food for consumption at home during the Coronavirus (COVID-19) pandemic. In response to the economic downturn and pandemic conditions, supplemental emergency allotments were issued to Supplemental Nutrition Assistance Program (SNAP) households and Pandemic Electronic Benefit Transfer (P-EBT) benefits were distributed to households with children missing free and reduced-price school meals. This expansion of nutrition assistance led to a rapid increase in the dollar amount of these benefits issued to households and redeemed for food at home (FAH). In January and February 2020, SNAP benefit redemptions accounted for 6.8 percent of total FAH expenditures as estimated by the Food Expenditure Series. In March 2020, FAH spending spiked, causing SNAP’s share of FAH spending to fall. From March to June 2020, the introduction of P-EBT and increase in SNAP benefits led to rapid growth in these programs’ share of FAH spending. In June 2020, redemptions of these benefits peaked at $9.5 billion—making up 13.3 percent of FAH spending that month. This share fell the following three months. Overall, the share of total FAH spending attributable to SNAP and P-EBT from April through September 2020 was 11.7 percent—more than one in nine dollars and nearly 5 percentage points higher than SNAP’s share over the same months in 2019. This chart is based on a chart in the USDA, Economic Research Service’s COVID-19 Working Paper: Supplemental Nutrition Assistance Program and Pandemic Electronic Benefit Transfer Redemptions during the Coronavirus Pandemic, released March 2021.

Food services industry share of the food dollar increased in 2019 for eighth consecutive year

Monday, May 17, 2021

In 2019, restaurants and other eating places claimed 38.5 cents of the average U.S. food dollar, continuing a steady climb since 2009, when the food services industry’s share was 29.6 cents. Farm production was the only other industry with a rising food dollar share in 2019, up slightly to 7.6 cents from its 25-year low of 7.4 cents in 2018. The proportion of the food dollar was the smallest since 1993 for several industries in 2019: agribusiness (such as fertilizer and farm services), food processing, packaging, wholesale trade and retail trade. The 2019 food dollar reflects conditions before the COVID-19 pandemic. ERS’s annual Food Dollar Series provides insight into the industries that make up the U.S. food system and their contributions to total U.S. spending on domestically produced food. ERS uses input-output analysis to calculate the cost contributions from 12 industry groups in the food supply chain. Annual shifts in the food dollar shares between industry groups occur for a variety of reasons, including changes in the mix of foods consumer buy, costs of materials, ingredients, and other inputs, as well as changes in the balance of food at home and away from home. This chart is available for the years 1993 to 2019, and can be found in ERS’s Food Dollar Series data product, updated on March 17, 2021.

Online redemptions of SNAP and P-EBT benefits rapidly expanded throughout 2020

Friday, April 16, 2021

The Supplemental Nutrition Assistance Program (SNAP) Online Purchasing Pilot began in 2019 as mandated by the 2014 Farm Act and was quickly expanded in 2020 in response to the COVID-19 pandemic. The pilot allows households in participating States to use their SNAP benefits to purchase groceries online from a limited number of authorized retailers. Households can similarly use Pandemic Electronic Benefit Transfer (P-EBT) benefits, which were issued in 2020 to households with children missing free and reduced-price school meals during the pandemic. Online transactions using benefits are subject to the same requirements as in-person transactions and cannot be spent on tips or fees. The number of States where SNAP and P-EBT benefits could be redeemed online grew from just one State at the beginning of 2020 to 46 States by the end of September 2020. As availability increased and the pandemic necessitated continued social distancing, the value of SNAP and P-EBT benefits redeemed online increased. In February 2020, households redeemed less than $3 million in benefits online, accounting for less than 0.1 percent of all benefits redeemed. By September, this amount grew to $196 million — 67 times its value in February. Overall, households redeemed $801 million in benefits online from February to September 2020. Despite this rapid growth, online redemptions accounted for only 2.4 percent of all benefits redeemed in September. This chart is based on a chart in the USDA, Economic Research Service’s COVID-19 Working Paper: Supplemental Nutrition Assistance Program and Pandemic Electronic Benefit Transfer Redemptions during the Coronavirus Pandemic, released March 2021.

SNAP and P-EBT benefit redemptions surpassed prior 3-year average in 2020

Thursday, April 8, 2021

The U.S. Government expanded existing food assistance programs and introduced new ones in response to the COVID-19 pandemic and subsequent economic contraction in the United States in 2020. Some States began issuing monthly supplemental emergency allotments to Supplemental Nutrition Assistance Program (SNAP) households in March 2020, with the rest beginning to do so in April 2020. All States issued Pandemic Electronic Benefit Transfer (P-EBT) benefits to households with children who missed free or reduced-price school meals during the 2019-20 school year; the earliest States began issuing P-EBT benefits in April 2020. This led to a rapid increase in the dollar amount of food assistance benefits issued to households and redeemed for groceries during the pandemic. The value of total monthly redemptions roughly doubled from $4.7 billion in March 2020 to $9.5 billion in June 2020. Most P-EBT benefits for the 2019-20 school year were issued in May and June 2020, leading total redemptions to peak in June and decline over the next three months. By September, redemptions amounted to $8.1 billion. Overall, an average of $8.4 billion per month in combined SNAP and P-EBT benefits were redeemed from April through September 2020—an increase of 74 percent compared with the average value of benefits redeemed during the same 6 months in 2017-19. This chart is based on a chart in the USDA, Economic Research Service’s COVID-19 Working Paper: Supplemental Nutrition Assistance Program and Pandemic Electronic Benefit Transfer Redemptions during the Coronavirus Pandemic, released March 2021.

Farm share of U.S. food dollar increased in 2019 after 7 years of decline

Wednesday, March 31, 2021

On average, U.S. farmers received 14.3 cents for farm commodity sales from each dollar spent on domestically produced food in 2019, up from a newly revised estimate of 14.2 cents in 2018. Known as the farm share, this amount increased slightly after 7 consecutive years of decline. Average prices received by U.S. farmers (as measured by the Producer Price Index for farm products) have been relatively stable for the last three years, following sharp declines in 2015 and 2016. The USDA, Economic Research Service (ERS) uses input-output analysis to calculate the farm and marketing shares from a typical food dollar, including food purchased at grocery stores and at eating-out establishments. The marketing share covers the costs of getting domestically produced food from farms to points of purchase, including costs related to packaging, transporting, processing, and selling to consumers at grocery stores and eating-out places. The farm and marketing shares of the food dollar in 2019 reflect conditions before the COVID-19 pandemic. Beginning in March 2020, the ERS monthly Food Expenditure Series reported sharp declines in the share of eating-out food dollars. Farmers receive a smaller share from eating-out dollars because of the added costs for preparing and serving meals at restaurants, cafeterias and other food-service establishments. The data for this chart can be found in ERS’s Food Dollar Series data product, updated March 17, 2021.

Share of food-at-home spending in the United States returned to Great Recession levels in 2020

Wednesday, March 24, 2021

The share of food dollars spent at grocers, supercenters, and other food-at-home (FAH) retailers in the United States rose in 2020 above Great Recession levels in 2008 as the COVID-19 pandemic disrupted the way people consumed food. The share of spending at FAH establishments began a sharp climb from 48 percent in February 2020, and by April 2020, 66 percent of food spending was devoted to at-home consumption. Shifts to greater FAH spending occurred as states issued stay-at-home mandates and people generally avoided public gatherings. The economic recession likely exacerbated this shift as FAH purchases are more cost-efficient. Even after its April 2020 peak, the share of FAH spending reached the same level in August 2020 as it was in August 2008, during the Great Recession. After that, food spending shares generally followed typical seasonal patterns, although at a level more like the Great Recession than 2018, remaining stable with a slight increase in FAH spending in the colder, winter months. ERS researchers will continue to examine food expenditure data to determine whether this change will endure beyond the pandemic and recession. The data for this chart come from the USDA, Economic Research Service’s Food Expenditure Series data product.