For over two years, consumers have experienced supply chain disruptions sparked by the COVID-19 pandemic. Volatility on the national and world stage continues to throw curveballs as consumers aim to put food on the table.
Purdue University’s Consumer Food Insights Report for the month of March offers insights into how respondents from different income brackets differ in terms of spending trends, product preferences and food policy priorities.
Food insecurity on the rise
The war in Ukraine is sparking conversations about the world’s food supply. Ukraine is a leading supplier of wheat, and the country’s crops are in jeopardy of getting planted this spring. Data from consumers shows food insecurity is already on the rise in the U.S.
Purdue estimates the national rate of food insecurity to be 17%, a slight increase over February. The level of “very low food security” is also growing, and 46% of households making less than $50,000 annually are waiting on their next paycheck to purchase groceries. The survey also found 1 in 10 households report picking up their last groceries from a food bank or pantry.
Food spending
Total food spending in March increased by 8% month-over-month with the greatest increase seen in dine-in restaurant spending. On average, consumers reported spending about $114 per week at the grocery store and about $63 per week on restaurants and other carryout meals.
Food spending also rose between January and February, but the rate of increase is much higher for March. Notably, food as a share of household income remains relatively unchanged, which would indicate that wages are similarly rising.
Product preferences
Overall, taste is the top priority for Americans as they choose to purchase food items. Households making more than $150,000 value taste and nutrition much more, while lower-income households value affordability nearly as much as they value taste. Lower-income households also place less importance on the nutrition of food products.
Across all income groups, consumers placed a similar level of importance on social responsibility and environmental impact.
One interesting tidbit is the differences across income brackets when it comes to choosing brand name or generic products. Lower-income households care more about price and were more willing to consider generic items. Still, for those who preferred brand name items, only a very small share of respondents switched from brand name to generic – even when the price of generic dropped by $15.
Food policy
When it comes to policy, increased funding for research and conservation remains most popular among consumers. Regulating environmental claims that food companies can make about their products now enjoys over 70% support, which may indicate many consumers have difficulty navigating the current food sustainability advertising landscape.
However, food policy support does see a clear difference across income brackets. For example, support for permanently expanding SNAP benefits is much greater among low-income households compared to high-income households. In addition, support for a sweetened beverage tax is greater among high-income households compared to low-income households.
To learn more, view the full report from Purdue University.
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