Consumers polled by Purdue University in May said they are spending 6.9% more on food compared with a year ago.
At the same time, the Consumer Food Insights Report said grocery out-of-stock items continue to decrease.
“This is a positive sign for consumer spending as it means less upward pressure on prices,” the report said.
The report from Purdue University’s Center for Food Demand Analysis and Sustainability assesses food spending, consumer satisfaction and values, support of agricultural and food policies, and trust in information sources, according to a news release.
The survey of more than 1,200 consumers shows that a majority of shoppers with limited budgets are shopping at dollar stores, even for food items, the release said.
Consumers are interested in shopping even more if dollar stores expand their options, according to the release. That aligns with the recent news that brand marketers are betting on dollar stores, the release said.
Additional key results include:
- Food insecurity is up to 16% from 14% but remains within the same 3-percentage-point range seen since January 2022.
- Grocery stockouts continue to trend downward, hitting their lowest point since January 2022, as few foods are hard to find.
- Thrifty food spenders are more likely to eat vegetarian, grow a food garden and compost food scraps.
The latest survey data also shows that spending more on food does not necessarily mean people will be happier with their diets, the release said.
“We have discussed previously that a large majority of Americans are generally satisfied with their food options, which creates a sort of floor for food happiness,” Sam Polzin, a food and agriculture survey scientist for the center and co-author of the report, said in the release. “However, I might also speculate that Americans receive a lot of negative messages about their diets and that people often feel guilty about their diets. This could create a ceiling for food happiness.”
Economists expected to see differences between the food spending groups, which they classify as thrifty (less than $50 a week), moderate ($50 to $85 a week) and liberal (more than $85 a week), the release said. For example, this includes thrifty spenders more often choosing generic-brand foods.
However, the report said economists also observed some unexpected similarities, such as thrifty and liberal spenders choosing organics or cage-free eggs at similar rates.
“These results run counter to some conventional wisdom that consumers with larger budgets are comparatively more likely to choose more expensive products like organics, which have a health and environmental halo,” Polzin said in the report.
The Center for Food Demand Analysis and offers a portfolio of online dashboards about food prices and consumer shopping behavior.
