Food spending up 13.4% in 2021, government reports

Average annual consumer expenditures rose 9.1% in 2021, including a massive 13.4% increase in expenditures on food, a new report reveals.

The Bureau of Labor Statistics report on consumer expenditures showed that average annual expenditures for all consumer units in 2021 were $66,928, a 9.1% increase from 2020.

During the same period, the Consumer Price Index rose 4.7%, and average income before taxes increased 3.7%.

Overall, the report said housing accounted for the highest share (33.8%), followed by transportation (16.4%), food (12.4%), and personal insurance and pensions (11.8%). 

The report said that, among the 14 major components of household spending, the largest increase in expenditures was in entertainment (up 22.7%), followed closely by a 22.3% rise in apparel and services spending. 

In contrast, the report said only education expenditures decreased (down 3.5%) from 2020 to 2021.

The onset of the COVID-19 pandemic in 2020 led to major changes in the consumer economy, the report said. 

In 2022, many states mandated closure of businesses, such as restaurants, bars, hair salons and other businesses.

"As these businesses reopened, the initial effects of the pandemic on spending receded, as evidenced by the rebound in expenditures in 2021," the report said. 

In particular, spending on food away from home, apparel and services, alcoholic beverages, and personal care products and services approached 2019 levels, the report said. Spending on housing, health care and entertainment surpassed pre COVID-19 pandemic levels, the report said.

Spending on food increased 13.4% in 2021, compared to a decrease of 10.5% in 2020. 

"The increase was driven by food away from home spending, up 27.6%, accompanied by an increase in food at home spending, up 6.6%," the report said. "While food at home expenditures in 2021 surpassed 2019 levels, food away from home remains below them."

More from the report:

• Entertainment expenditures increased 22.7% in 2021, compared to a decrease of 5.9% in 2020;
• Spending on apparel and services increased 22.3% in 2021, compared to a decrease of 23.8% in 2020;
• Alcoholic beverage expenditures were up 15.9% in 2021, after a 17.4% decrease in 2020;
• Transportation expenditures increased 11.6% in 2021, after an 8.5% decrease in 2020; and
• Housing expenditures increased 5.6% in 2021, after a 3.6% increase in 2020.