Key points
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The average American household spends $10,169 a year on food, or 12.9% of its total budget, making food the third-largest expense after housing and transportation.
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Americans spend 61.2% of their food budgets on groceries and meals at home; meat, poultry, fish, and eggs alone account for 13.9% of total food spending.
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Younger Americans devote a larger share of their budgets to food: Gen Z in particular spends 13.9% of its overall budget on food and 41.5% of its food budget on dining out.
Grocery spending is a pain point for many Americans. Food prices have increased at both grocery checkouts and fast-food counters , putting added pressure on household budgets. Recent surveys suggest roughly half of Americans are concerned about affording food, a worry that spans generations.
The average American household spends roughly $10,169 per year on food — 12.9% of its overall budget, according to a new study from loan platform CashNetUSA. That makes food the third-largest household expense after housing and transportation, based on federal spending data. The share varies by generation: Millennials devote 13.3% of their budgets to food, while Gen Z spends 13.9%.
Researchers pulled data from the 2024 Consumer Expenditure Survey from the Bureau of Labor Statistics, the most recent dataset on American spending. Researchers also broke down much of the data by generation, illustrating subtle differences in spending habits across age groups.
The grocery categories Americans spend the most on
Meat, poultry, fish, and eggs account for a significant share of Americans' food budgets, averaging 13.9% of total food spending, or $1,414 a year. Among younger shoppers, chicken stands out as a more budget-friendly choice. That's followed by fruits and vegetables (9.4%), cereals and bakery (7.7%), and dairy products (6.2%). Miscellaneous groceries account for the largest share of food costs, making up to 24.1% of Americans' typical spending.
Related: Wealthy Americans Prefer This Grocery Chain Over Any Other, Survey Finds
Despite tightening budgets, Americans continue to make room for snacks. The average household spends $719 a year on chips, candy, nuts, cookies, and other snack foods. Gen Z spends a larger share of its snack budget on chips than any other generation, at 31.5%.
| How food spending differs by generation |
|||||
|---|---|---|---|---|---|
| Food category |
Silent Generation |
Baby Boomers |
Gen X |
Millennials |
Gen Z |
| Dairy products |
7.2% |
6.6% |
6.0% |
6.0% |
5.6% |
| Cereals and bakery |
9.3% |
8.0% |
7.4% |
7.5% |
6.9% |
| Fruits and vegetables |
11.3% |
9.9% |
9.2% |
9.0% |
8.6% |
| Meat, poultry, fish, and eggs |
14.2% |
14.4% |
13.9% |
13.7% |
12.9% |
| Other food at home |
24.4% |
24.8% |
24.0% |
23.4% |
24.5% |
| Total food at home |
66.5% |
63.7% |
60.5% |
59.6% |
61.2% |
Gen Z spends more of its food budget on dining out
Younger consumers also spend more of their food budgets on takeout and fast food, consistent with other recent data on dining habits.
Gen Z devotes 23.3% of its food budget to fast food, compared with 13.2% for baby boomers and 11.4% for the Silent Generation.
Related: This Is the Most Trusted Grocery Store in the US, According to 35,215 Shoppers
The report suggests that convenience culture and variable work schedules may help explain the generational divide, making cooking at home less practical for some younger consumers.
One theme is consistent across all generations: Food commands a significant share of household budgets, whether those dollars are spent at the grocery store, the drive-thru, or a restaurant.
Where Americans' food dollars go
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The average American household spends $10,169 a year on food, accounting for 12.9% of its overall budget.
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On average, households devote 61.2% of their food budgets to food at home. That share rises to 66.5% for households in the Silent Generation.
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Gen Z spends the largest share of its food budget away from home, at 41.5%.
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Across all households, 38.8% of the average food budget goes toward food away from home.
Read the original article on Food & Wine
