Americans opened their wallets to spend a record amount on food last year, even when inflation is considered, partly because they like the convenience of take-out and restaurant food, said two USDA economists. Outlays on food away from home grew by an inflation-adjusted 11 percent last year at the same time inflation was driving up prices.
“These trends suggest that consumers were willing to increase their share of FAFH (food away from home) spending in their budgets, even with rising prices,” wrote Eliana Zeballos and Wilson Sinclair of the Economic Research Service. “Moreover, while some households may have adjusted their FAFH consumption in response to rising prices, wage growth or improved economic conditions may have resulted in more disposable income for others. This increased financial flexibility could have allowed some households to maintain or even increase their FAFH spending despite higher prices.”
In an article in USDA’s online magazine Amber Waves, Zeballos and Sinclair said consumers spent 53.9 cents of their food dollars on food away from home during 2022, the largest share since USDA began tracking expenditures. Food away from home generally costs more than groceries purchased for home consumption. Since 2004, with the exception of the pandemic year of 2020, Americans have spent more on food away from home annually than for food at home.
Spending on food away from home rebounded in 2021 and surpassed 2019 levels by mid-year. “Several factors contributed to this resurgence, including the re-opening of restaurants, the availability of takeout options and the return to work for many people,” said the ERS economists.
Adjusted for inflation, annual U.S. spending on food increased 70 percent from 1997 to 2022, they said. The U.S. population grew 24 percent during the 25-year period.