DEMOGRAPHICS OF CONSUMER FOOD SPENDING

Transcription

1 THE FOOD INSTITUTE S DEMOGRAPHICS OF CONSUMER FOOD SPENDING The Who, What, When & Where of Consumer Food Spending 2008 Edition

2 The Food Institute s Demographics of Consumer Food Spending 2008 Edition The Food Institute 1 Broadway, 2 nd floor Elmwood Park, NJ Phone: Fax: Price: $ Published: September 2008 Demographics of Consumer Food Spending, 2008 Edition

3 The Food Institute s Demographics of Consumer Food Spending, 2008 Edition Table of Contents Explanations and Definitions...i - v Introductions Average Household Food Expenditures Average Annual Household Food Expenditures: Ten Year History...6 Food At-Home vs. Food Away-From-Home...7 Average Household Food Expenditures...8 Food At-Home Expenditures...9 Food Away-From-Home Expenditures...10 Average Household Food Expenditures 2006 Foot At-Home Expenditures: By Category - Pie Chart...11 Foot At-Home Expenditures: By Category - Bar Graph...12 Average Annual Household Food Expenditures...13 Meats, Poultry, Fish & Eggs - By Category...14 Fruits and Vegetable - By Category...15 Cereals and Bakery Products - By Category...16 Dairy Products - By Category...17 Average Annual Household Food Expenditures: Center of the Plate Expenditures By Category...20 Fruits and Vegetable Expenditures By Category...24 Cereals and Bakery Products Expenditures By Category...27 Dairy Products Expenditures By Category...29 Other Food At Home Expenditures By Category...31 Demographics of Consumer Food Spending, 2008 Edition

4 Pre-Tax Income Average Annual Household Food Expenditures...34 Food At-Home vs. Food Away-From-Home...35 Income Up To $50, Distribution of Expenditures...37 Income Over $50, Distribution of Expenditures...39 Income of Single Consumer...40 Distribution of Expenditures...41 Food Spending As A Percent of Annual Expenditures - Income Up To $50, Food Spending As A Percent of Annual Expenditures - Income Over $50, Age Average Annual Household Food Expenditures...44 By Age Group...45 Food At-Home vs. Food Away-From-Home...46 Meats, Poultry, Fish & Eggs - By Category...47 Fruits & Vegetables - By Category...50 Cereals & Bakery Products...52 Dairy Products...52 Distribution of Food Expenditures...53 Food At-Home- Pie Chart...54 Food At-Home- Bar Graph...56 Food Spending As A Percent of Annual Expenditures...59 Age & Pre-Tax Income Average Annual Household Food Expenditures: Under Distribution of Food Expenditures...61 At-Home Food Expenditures - By Category Distribution of Food Expenditures...66 At-Home Food Expenditures - By Category Distribution of Food Expenditures...71 At-Home Food Expenditures - By Category Distribution of Food Expenditures...76 Demographics of Consumer Food Spending, 2008 Edition

5 At-Home Food Expenditures - By Category Distribution of Food Expenditures...81 At-Home Food Expenditures - By Category and up...85 Distribution of Food Expenditures...86 At-Home Food Expenditures - By Category...87 Gender Average Annual Food Expenditures: Females...90 Average Annual Food Expenditures: Males...91 Distribution of Food Expenditures...92 Average Annual At-Home Food Expenditures: Females vs. Males...93 Meats, Poultry, Fish & Eggs - By Category...94 Fruits & Vegetables - By Category...95 Cereals & Bakery Products...96 Dairy Products...96 Other Food At-Home...97 Gender & Age Average Annual Household Food Expenditures...98 Food At-Home vs. Away-From-Home...99 Distribution of Food At-Home Expenditures: Females Distribution of Food At-Home Expenditures: Males Gender & Pre-Tax Income Average Annual Food Expenditures: Females Average Annual Food Expenditures: Males Food At-Home vs. Food Away-From-Home Distribution of Food At-Home Expenditures: Females Distribution of Food At-Home Expenditures: Males Distribution of Total Food Expenditures: Females Distribution of Total Food Expenditures: Males Race & Ethnicity Race Average Annual Household Food Expenditures Food At-Home vs. Food Away-From-Home Demographics of Consumer Food Spending, 2008 Edition

6 Distribution of Food Expenditures Distribution of At-Home Food Expenditures Food Spending As A Percent of Annual Expenditures Ethnicity Average Annual Household Food Expenditures Food At-Home vs. Food Away-From-Home Distribution of Food Expenditures Distribution of At-Home Food Expenditures Food Spending As A Percent of Annual Expenditures Region Average Annual Household Food Expenditures Total Food Expenditures - Bar Graph Food At-Home vs. Food Away-From-Home Distribution of Food Expenditures Distribution of At-Home Food Expenditures Food Spending As A Percent of Annual Expenditures Food Spending By Age Region & Age Average Annual Household Food Expenditures: Under Food At-Home vs. Away-From-Home Distribution of At-Home Food Expenditures Food At-Home vs. Away-From-Home Distribution of At-Home Food Expenditures Food At-Home vs. Away-From-Home Distribution of At-Home Food Expenditures Food At-Home vs. Away-From-Home Distribution of At-Home Food Expenditures Food At-Home vs. Away-From-Home Distribution of At-Home Food Expenditures Demographics of Consumer Food Spending, 2008 Edition

7 Food At-Home vs. Away-From-Home Distribution of At-Home Food Expenditures and up Food At-Home vs. Away-From-Home Distribution of At-Home Food Expenditures Region & Income Average Annual Household Food Expenditures Northeast Food At-Home vs. Away-From-Home Distribution of At-Home Food Expenditures Midwest Food At-Home vs. Away-From-Home Distribution of At-Home Food Expenditures South Food At-Home vs. Away-From-Home Distribution of At-Home Food Expenditures West Food At-Home vs. Away-From-Home Distribution of At-Home Food Expenditures Metro Areas Average Annual Household Food Expenditures Northeast Food At-Home vs. Away-From-Home Midwest Food At-Home vs. Away-From-Home South Food At-Home vs. Away-From-Home West Food At-Home vs. Away-From-Home Food At-Home Expenditures in Selected Areas Food Away-From-Home Expenditures in Selected Areas Urban or Rural Housing Average Annual Household Food Expenditures, Distribution of Food Expenditures, & Food Spending As A Percent of Annual Expenditures Demographics of Consumer Food Spending, 2008 Edition

8 Distribution of Annual At-Home Food Spending Career of Head of Household Average Annual Household Food Expenditures Food At-Home vs. Food Away-From-Home Food Spending As A Percent of Annual Expenditures Food At-Home vs. Food Away-From-Home: Wage & Salary Workers Food Spending As A Percent of Annual Expenditures: Wage & Salary Workers Distribution of Food Expenditures Distribution of At-Home Food Expenditures Meats, Poultry, Fish & Eggs - By Category Fruits & Vegetables - By Category Cereals & Bakery Products - By Category Other Food At-Home - By Category Food Spending As A Percent of Annual Expenditures Composition of Household Average Annual Household Food Expenditures At-Home Food Expenditures - By Category Distribution of Food Expenditures Food Spending As A Percent of Annual Expenditures Education of Head of Household Average Annual Household Food Expenditures At-Home Food Expenditures - By Category Distribution of Food Expenditures Food Spending As A Percent of Annual Expenditures Size of Household Average Annual Household Food Expenditures Food At-Home vs. Food Away-From-Home At-Home Food Expenditures - By Category Distribution of At-Home Food Expenditures Distribution of Food Expenditures Demographics of Consumer Food Spending, 2008 Edition

9 Earners in Household Average Annual Household Food Expenditures Distribution of At-Home Food Expenditures Distribution of Food Expenditures Food Spending As A Percent of Annual Expenditures Population Total Female Male Demographics of Consumer Food Spending, 2008 Edition

10 Explanations about the Consumer Expenditure Survey and its Categorical Breakdowns based on information from the Bureau of Labor Statistics What is the Consumer Expenditure Survey? The Consumer Expenditure Survey, conducted by the U.S. Census Bureau for the Bureau of Labor Statistics, consists of two components: a diary (or record keeping survey) completed by participating consumer units for two consecutive 1-week periods and an interview survey, in which expenditures of consumer units are obtained in five interviews conducted at 3-month intervals. Results are based on integrated data from both surveys. Each component of the survey queries an independent sample of consumer units that is representative of the U.S. population. For the Diary Survey, about 7,500 consumer units are sampled each year, for a total of 15,000 diaries per year (7,500 x 2 diaries per 2 week period). The interview sample, selected on a rotating panel basis, surveys about 7,500 consumer units each quarter. Each consumer unit is interviewed once per quarter, for 5 consecutive quarters. Data are collected on an ongoing basis in 105 areas of the U.S. The Interview Survey is designed to capture expenditure data that respondents can reasonably recall for a period of 3 months or longer. In general, the expenditures are relatively large, such as automobiles, major appliances, and expenditures that occur on a regular basis. The Diary Survey is designed to capture expenditures on small, frequently purchased items that normally are difficult for respondents to recall. Integrated data from the Bureau of Labor Statistics Diary and Interview Surveys provide a complete accounting of consumer expenditures and income that neither survey alone is designed to do. Consumer units spent $43,395, on average, in 2004, a 6.3% increase over the previous year. This was the largest change in average expenditures in several years; however, there were changes to the survey in 2004, and the estimates for average annual expenditures and some of the components are not strictly comparable to estimates for previous years. Starting with the 2004 tables, the Consumer Expenditure Survey implemented multiple imputation of income data. In previous years, the survey only published income data collected from complete income reporters. It should be noted, however, that even complete income reporters do not always provide information on all their sources of income. Imputation allows income to be estimated when it is not reported. Because of this new system, data from 2004 are not strictly comparable to data from previous years. For example, in 2003 nearly 16% of consumer units are defined to be incomplete reporters. Income imputation allows expenditure data for these consumer units to be included in income categories from which they were previously excluded. To the extent that the incomplete reporters have demographic characteristics or expenditure patterns different from those of the complete income reporters who were previously assigned to these categories, averages for demographic characteristics and annual expenditures will change. As a result of imputation, average annual estimates for these expenditures in 2004 may be substantially different from, and not strictly comparable to, estimates for previous years. Age - The age of the reference person. Average Number of Persons - The number of persons whose usual place of residence at the time of the interview is in the sample unit. Complete income reporters - The distinction between complete and incomplete income reporters is based on whether the respondent provided values for major sources of income, such as wages and salaries, self-employment income, and Social Security income. In all tables, income data are for complete income reporters only. Composition of consumer unit - The classification of interview families according to: (1) relationship of other family members to the reference Demographics of Consumer Food Spending, 2008 Edition i

11 person; (2) age of the children of the reference person; and (3) combination of relationship to the reference person and age of the children. Step children and adopted children are included with the reference person s own children. Consumer unit - A consumer unit comprises either: (1) all members of a particular household who are related by blood, marriage, adoption, or other legal arrangements; (2) a person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is financially independent; or (3) two or persons living together who pool their income to make joint expenditure decisions. Financial independence is determined by the three major expense categories: housing, food, and other living expenses. To be considered financially independent, two of the three major expense categories have to be provided by the respondent. Earner - A consumer unit member, 14 years of age or older, who reported having worked at least 1 week during the 12 months prior to the interview date. Expenditures - The transaction costs, including excise and sales taxes, of good and services acquired during the interview or recordkeeping period. Expenditure estimates include expenditures for gifts, but exclude purchases or portions of purchases directly assignable to business purposes. Also excluded are periodic credit or installment payments on goods or services already acquired. The full cost of each purchase is recorded even though full payment may not have been made at the date of purchase. The order of the expenditures listed here follows the order of presentation in published CE tables. The major expenditure categories are Food, Housing, Apparel, and Services, Transportation, Health Care, Entertainment and Other Expenditures. Education of reference person - The number of years of formal education of the reference person, based on highest grade completed. If enrolled at the time of the interview, the grade being attended is recorded. Housing tenure - The family s principal place of residence during the survey. Owner includes families living in their own homes, cooperatives or condominium apartments, or townhouses. Renter includes families paying rent as well as families living rent free in lieu of wages. Income - The combined income of all consumer unit members 14 years of age or over during the 12 months preceding the interview. Pre-Tax Income - The total money earnings and selected money receipts during the 12 months prior to the interview date. Metropolitan Statistical Areas (MSA s) - A large population nucleus, together with adjacent communities which have a high degree of economic and social integration with that nucleus. These are defined by the Office of Management Budget as a standard for Federal agencies in the preparation and publication of statistics. Occupation - Refers to the occupation in which the reference person received the most earnings during the survey period. The occupational categories follow those of the Census of Population. Categories shown in the reference table include the following: Self-employed - Encompasses all occupational categories; the reference person is self employed in own business, professional practice, or farm Wage and salary earners Managers and professionals - executives, administrators, and managers; and professional specialties, including architects, engineers, natural and social scientists, lawyers, teachers, writers, health diagnosis and treatment workers, entertainers and athletes. Technical, sales, and clerical workers - technicians and related support workers; sales representatives, sales workers, cashiers, and sales related occupations; and administrative support, including clerical. Demographics of Consumer Food Spending, 2008 Edition ii

12 Service Workers - private household workers, protective services, food preparers, health services, cleaning and building services, and personal service occupations. Precision production, craft and repair workers - mechanics and repairers, construction trades, extractive occupations, and precision production occupations. Operators, fabricators, and laborers - machine operators and assemblers, transportation workers, handlers and laborers, and farming, forestry, and fishery workers. Retired Retired persons who did not work either full- or part-time during the survey period. All others, including not reporting A residual including unemployed persons; those working without pay; those not working due to illness, going to school, or caring for others; and those not reporting their occupational status. Population - The total civilian non-institutional population of the United States as well as that portion of the institutional population living in the following group quarters: Boarding houses, housing facilities for students and workers, staff units in hospitals and homes for the aged, infirm, or needy, permanent living quarters in hotels and motels, and mobile home parks. Excluded are military personnel living on military bases and nursing home residents. Race - The race of the reference person of the consumer unit. All families are included in three racial groups, black or African American, Asian, and white and all other races. The other group comprises such races as Native Americans, Alaskan natives, and Pacific Islanders, and those reporting more than one race. Reference person - The first member mentioned by the respondent when asked to Start with the name of the person or one of the persons who owns or rents the home. It is with respect to this person that the relationship of the other consumer unit members is determined. Regions - Data are presented for four major regions: Northeast, Midwest, South, and West. Consumer units are classified by region according to the address of the family during the time of their participation in the survey. Northeast - Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont. Midwest - Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota and Wisconsin. South - Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia. West - Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming. Rural population - All persons living outside of a Metropolitan Statistical Area (MSA) and within an area with a population of less than 2,500 persons. Size of the consumer unit - The number of persons whose usual place of residence at the time of the interview is in the sample unit. Urban population - All persons living in MSA s and in urbanized areas and urban places of 2,500 or more persons outside of MSA s. Urban, defined in this survey, includes the rural populations within an MSA. Demographics of Consumer Food Spending, 2008 Edition iii

13 Food Category Definitions Food at Home - The total expenditures for food at grocery stores or other food stores & food prepared by the consumer unit. It excludes the purchase of nonfood items. Cereals and Cereal Products - Ready-to-eat & cooked cereals, pasta, flour, prepared flour mixes & other cereal products such as cornmeal, cornstarch & rice. Bakery Products - Bread (white & other than white), crackers & cookies, biscuits & rolls, cakes, cupcakes, bread & cracker products, pies, tarts, sweet rolls, coffeecakes, doughnuts & other frozen & refrigerated bakery products such as cookies, bread & cake dough & batter. Beef - Ground beef, roasts, steaks, veal & other cuts of beef, excluding canned beef. Pork - Bacon, pork chops, ham (including canned), roasts, sausage & other cuts of pork. Other Meats - Frankfurters; lunchmeats such as bologna, liverwurst & salami; also lamb, mutton, goat, game & organ meats. Poultry - Fresh & frozen chickens & other fresh & frozen poultry (Cornish hens, turkey, duck, etc.). Fish and Seafood - Canned fish & seafood & fresh or frozen finfish & shellfish. Eggs - Fresh eggs, as well as powdered eggs & egg substitutes. Fresh Milk and Cream - Fresh whole milk & other fresh milk such as buttermilk & fresh cream (including table cream, whipping cream, fresh sour cream & fresh sour cream dressing.) Other Dairy Products - Butter, cheese, ice cream, yogurt, powdered milk, condensed & evaporated milk, liquid & powdered diet beverages, malted milk, milk shakes, chocolate milk & other specified dairy products. Fresh Fruits - All fresh fruits. Fresh Vegetables - All fresh vegetables. Processed Fruits - All frozen, canned & dried fruits & frozen, canned & bottled fruit juices. Processed Vegetables - Canned, dried & frozen vegetables & vegetable juices. Sugar and other Sweets - Sugar, candy & chewing gum, artificial sweeteners, jams, jellies, preserves, fruit butters, syrup, fudge mixes, icings & other sweets. Fats and Oils - Margarine, shortening, dressings, nondairy cream substitutes, imitation milk, peanut butter. Miscellaneous Foods - Frozen prepared meals & foods, canned & packaged soups, potato chips, nuts & other snacks, condiments & seasonings, olives, pickles, relishes, sauces & gravies, baking needs & other specified condiments, other canned & packaged prepared foods, salads, desserts & baby foods. Demographics of Consumer Food Spending, 2008 Edition iv

14 Nonalcoholic Beverages - Diet & non-diet carbonated drinks (cola, fruit & other drinks), coffee (roasted, instant & freeze dried), tea (loose, instant & ready-to-drink) & other nonalcoholic beverages, including non-carbonated fruit drinks, breakfast substitutes, chocolate flavored powders & other specified nonalcoholic beverages. Food Away from Home - All meals (breakfast, lunch, brunch & dinner) at restaurants, carryout & vending machines, including tips, meals as pay, catered affairs & meals away from home on trips. Alcoholic Beverages - Beer & ale, wine, whisky, gin, vodka, rum & other alcoholic beverages. Demographics of Consumer Food Spending, 2008 Edition v

15 Expenditures Up, Food Share Down Average household expenditures were the highest in ten years, as were total food expenditures, but food's share of consumer expenditures is declining, from a high of 13.8% in 1997 to 12.6% in 2006, according to Food Institute analysis of the Bureau of Labor Statistics' 2006 Consumer Expenditure Survey (the latest data available). A consumer unit is defined as all members of a particular household who are related by blood, marriage or adoption, a person living alone, or two or more persons living together who use their income to make joint expenditure decisions. Although spending on food increased 3.0% from the previous year, its share of overall annual expenditures declined from 2005, when consumers allocated 12.8% of their annual spending towards foods. In fact, 2005 (followed by 2006) was the first time in nearly ten years that the percentage of annual spending for food dipped below 13% of a household's overall expenditures. Food at-home and food away-from-home share held steady in 2006, with at-home spending still accounting for the greater share. This change follows a decline in at-home's share in recent years, as awayfrom-home was capturing a larger share of household spending. Average annual expenditures increased 4.3% in 2006, while food spending increased 3.0%. Food at-home increased 3.6%, while food away-fromhome increased 2.3%. Food at home's share is still less than it was in 2004 and earlier, and food away-from-home's share is still higher than it used to be. Between 1997 and 2006, the average amount of money that a household spent on food increased 27.3%, with food at-home expenditures increasing 18.6% and food away-from-home expenditures increasing 40.2%. This adjustment occurred as the average annual income (before taxes) increased 51.6%, from $39,926 in 1997 to $60,533 in During this same time, overall expenditures increased 39.0%. Households spent the majority of their food dollars in 2006 on two main categories: meats, poultry, fish & eggs and "other" foods, which include non-alcoholic beverages, fats & oils (salad dressing, peanut butter, etc.), sugar & other sweets, and miscellaneous foods (frozen prepared meals, canned and packaged soups, snacks, condiments, etc.). Consumers spent 23.3% of their total at-home food expenditures on the meats, poultry, fish & eggs category, while they spent 17.3% on fruits & vegetables, 13.1% on cereals & bakery, and 10.8% on dairy products. The remaining 35.5% was spent on the aforementioned "other" foods category. Percent of Household Food Spending Allocated to "Miscellaneous Foods" % of Food Dollars Spent on Miscellaneous Foods Average Annual 2006 Expenditures Total Spending on Miscellaneous Foods 2006 Demographics of Consumer Food Spending, 2008 Edition Food Spending All $48, % $ % 10.27% 9.12% 9.18% 8.78% Under 25 $28, % $ % 9.68% 8.99% 9.73% 9.50% $47, % $ % 10.87% 9.55% 9.57% 9.36% $57, % $ % 10.56% 9.52% 8.96% 9.06% $57, % $ % 9.86% 8.85% 8.93% 8.53% $50, % $ % 9.58% 8.22% 9.01% 7.81% $40, % $ % 9.96% 9.16% 9.45% 8.75% 75 & up $28, % $ % 12.04% 9.66% 9.76% 8.57%

16 Within the meats, poultry, fish & eggs category households spent the majority of their food dollars on beef (29.6%), followed by pork (19.7%), and then poultry (17.7%). Average household spending on the category overall was $797, up from $764 in Average spending on fruits & vegetables, meanwhile, increased slightly to $592, compared to $552 in Within this category, consumers spent the most on fresh products, with fresh fruits accounting for 32.6% of spending in this category. Variations in food spending are noticeable when demographic factors such as age, gender, income, race, region and career are considered. Age: The 2006 Bureau of Labor Statistics data shows a parabolic general expenditure trend, as the age group spent the most on food, followed very closely by the bracket. The age groupings at both ends of the spectrum, under 25 and 75&up, altogether spent 46.5% and 53.1% as much as the grouping, respectively. The rise in spending among age groups is typically aligned with increases in household size, but interestingly the values of money spent per household member increase for every age group, finally subsiding at the Over-65 age brackets. The data suggests that even as the household sizes decrease, non-seniors continue to make considerable food expenditures even when there are less mouths to feed. Among all age groups, the meats, poultry, fish and eggs category was responsible for the most substantial food at-home single-item expenditure, along with "other" food at-home purchases, which include beverages. Following that, consumers focused their spending on fruits and vegetables, cereals and bakery products, and then dairy, in that order. Income had little effect on which types of food are favored, with increases divided evenly between all food at-home purchases. Organized by age, the only significant change in specific food category expenditure was observed in fruits and vegetables; as age increases, fruits and vegetables receive a larger portion of spending, suggesting a greater concern for a healthy and nutritional diet in older consumers. The percentage of income used toward food at-home expenditures increased nearly uniformly with age, as the under-25 group spent the least of all age brackets on food at-home purchases, averaging 49.66% of total food expenditures while the 75&up age bracket spent the most with 65.29%. Based on financial data, food expenditures increased predictably with pre-tax income as well as with household size. When household size remained similar, but income increased, the younger age groups typically spent less of their higher income on food, with away-from-home expenditures accounting for most of the small gains. As age increased, however, higher income is better reflected in food spending. While those increases are more evenly divided between at-home and away-from-home expenditures, the data shows that consumers are willing to indulge in luxury spending when the funds are available, particularly when an income of $70,000 is exceeded. Gender: Similar to last year, males spent significantly more on food than females, averaging $3,502 compared to female's $2,881. A large portion of this difference came from food spent away-from-home, where males spent $1,880 while females only spent $1,145. Also like last year, males spent the majority of their money on food away-from home, while females spent the majority of their money on food at-home. It should also be noted that, Demographics of Consumer Food Spending, 2008 Edition 2

17 generally speaking, women spent more money at home in nearly every major food category (other than meats, poultry, fish & eggs) compared to their male counterparts. The large difference in food spending, however, can be attributed to males' away-from-home food spending. When age was taken into account, males and females followed similar trends. For example, both males and females aged were the biggest spenders on food. Those persons in the under 25 category spent the majority of their money on food away-from-home, while nearly (there were a handful of exceptions) every other age group spent the majority, or very close to the majority, of their money on food at-home. On average, females spent approximately $600 more on food at-home, while males spent well over $200 more on food away-from-home. Gender & Age also displayed a bell-shaped curve in terms of average annual food expenditures between males and females. Those under 25 and those 65 & up spent the least, while an increase was noticeable as one came closer to the center age groups (35-54). Within categorical analysis, other food at home consistently dominated as the most purchased category among both males and females. Although there was some minor fluctuation, meats, poultry, fish & eggs and fruits and vegetables were generally second, followed by cereal and bakery products and, finally, dairy products. Gender and pre-tax income also showed noticeable trends, with both male and females spending more both at-home and away-from-home based on their incomes. As one would expect, those making more were generally spending more, with the top spenders as males away-from-home ($2,758) and females at-home ($2,403). It should be noted, however, that the thriftiest spenders were females $5,000 - $9,999 category ($577), and not those in the >$5,000 income range. In fact, males and females making less than $5,000 were spending more away-from-home than their $20,000- $29,999 away-from-home female counterparts. Race/Ethnicity: Asian households had the highest average annual food expenditure totals at $7,411, followed by White households who spent $1,122 less per year. Black or African American households spent the least on food, $4,530. When average annual expenditures are considered, however, Black or African American households used 13.1% of their income on food purchases, the highest total of all races surveyed, and Asian households followed at 12.9%, while the difference in total food spending between the two was $2, 881. While all racial and ethnic groups made the majority of their food expenditures on food at-home items, Asian households spent the most away-from-home, $3,463 or 46.73% of their total expenditures, while Black or African American households spent the least at $1,735 or 38.30%. The away-from-home spending figures account for the largest difference among ethnic groups in total food expenditures. Regarding food at-home expenditures, all racial or ethnic groups directed the majority of their budgets toward other/miscellaneous food-at-home expenditures, which includes nonalcoholic beverages and sugars/sweets. As with other foods, Meats, Poultry, Fish, and Eggs expenditures were the second largest for all races, with Black or African American households spending the most, 18.65% of their total on the category, followed by Asian households with 13.79%. Within this group, however, Asian households purchased the most fish and seafood goods, more than any other meat expenditure for every race surveyed. Fruits and Vegetables were the third largest food expenditure for each group, and Asian households spent a larger portion of their food budget on this category than either White households or Black or African American households, who recorded a differ- Demographics of Consumer Food Spending, 2008 Edition 3

18 ence of.08%. Organized by ethnicity, Hispanic or Latino households had the highest portion of their average annual expenditures put towards food, 14.3%, and significantly more on food at-home, 8.6%, than any other ethnic group. Hispanic or Latino households also spent a larger portion of their total expenditures on food away-from-home than any other ethnicity. The difference in total food spending as a percentage of total expenditures was so large among those surveyed that in all but two major categories Hispanic or Latino households budgeted more of their annual expenditures for food than any other grouping, and those differences were never larger than.1%. Further analysis of food at-home spending reveals that Black or African American households spent more of their budget on Meats, Poultry, Fish, and Eggs than any ethnic group, White & all other races spent the highest percentage of total food budget on Cereals and Bakery Products, and Hispanic or Latino households spent significantly more on Fruits and Vegetables than any other ethnic group. Region: The Western Region spent the most total money on food, $7,158 per average household, in every age category but one in the BLS 2006 Consumer Expenditure Report. Though they typically spent more at-home and away-from-home than any other region, and total general expenditures are highest, the percentages of food spending against total income remain similar to the 12.6% national average. Consumers in the South spent the least on food, with an annual food expenditure of $5,649 per household. Comparing food at-home with food away-from-home spending shows that those in the South dined out the most, though the variation in this statistic was less than 1.1%, as most Americans tended to spend the majority of their money at-home at nearly the same rate. Focusing on at-home spending, the data shows that most regions purchase the same goods at similar rates, with center-of-the-plate items being the largest single-item category everywhere. However, consumers in the West spent the least amount of their income on meats while southern food buyers spent the largest portion with a.96% difference between the two. Significantly, the western groups spent the most on fruits and vegetables, the second largest single-item expenditure, while the southern consumers spent the least with a difference of 1.53%. When organized by age, average food expenditures tend to follow the mean averages of each region's households with a few notable exceptions. All age groups show an increase in spending until middle age, then a decrease as consumers enter their senior years. All regions but the Northeast reach their spending apex in the age bracket, while everywhere the 75 and up age group demonstrate the fewest expenditures. In the younger age groups, from the Under 25 bracket to the bracket, the Northeast region steadily reduces the difference between the West in overall spending until finally exceeding its total expenditures in the age group, spending on average $362 more annually. The difference in this category is primarily accounted for in food away-from-home spending. Organized by income, the Western region again dominates every total food expenditure category. Increases in total food expenditures rise almost universally along with income, with the greatest portion of that increase coming from food away-from-home spending. Food at-home expenditures do not reflect higher incomes to any significant degree until the highest income brackets are reached. Primarily, the data indicates that expenditure trends remain fairly uniform region-by-region, and each region exhibits the same spending practices and movements influenced by age and income. Looking at the major metropolitan areas of each region, cities in the West predictably show the highest average annual food expenditures, highest Demographics of Consumer Food Spending, 2008 Edition 4

19 total expenditures, and highest pre-tax income. San Francisco leads every other city in total expenditures, food expenditures, pre-tax income, and food away-from-home expenditures. Los Angeles was second in total food expenditures, and was followed by Phoenix. Food at-home and awayfrom-home spending was held again by San Francisco, but Phoenix, with the youngest average households at 44.3 years, spent the second most on food away-from-home. The city which spent least on food at-home and food away-from-home purchases was Baltimore, the only city to spend under $5,000 on food despite having an annual pre-tax income almost $20,000 higher than the Southern average for a metropolitan area. Comparing food at-home purchases with food away-from-home purchases reveals a consistency in spending among the metropolitan areas of a region. Most cities exhibited about a 52-55%/45-48% split between food at-home and away-from-home, although there are notable exceptions. Washington, D.C. and Atlanta were the only metropolitan areas to spend the majority of their total food expenditures on away-from-home purchases, while Miami spent the highest percentage of food expenditures on food at-home; the difference between the latter two cities was 16.36%. No other variance, regardless of location, was as pronounced. The ratio of food at-home to food away-from-home spending in metropolitan areas reflected larger regional trends, as pre-tax income typically correlated with more expenditures directed toward away-from-home food expenditures, excepting Baltimore. Career: While Self-Employed Workers followed similar food expenditure trends as the average Wage and Salary Earner, they had higher total annual food expenditures, $7,752, compared with Wage and Salary Earner's $6,582. Furthermore, Self-Employed Workers spent more total than every single career group except Managers and Professionals, who on average spent $6 more per year on food. Although Self-Employed Workers and Managers and Professionals in the Wage/Salary group spent the most of those surveyed, both had the highest Average Annual Expenditure totals as well, and claimed the lowest two spots when food spending as a percentage of total expenditures was calculated. Service Workers and Operators, Fabricators and Laborers spent 13.90% of their total annual expenditures on food, highest of all groups, and Construction Workers and Mechanics spent the second most at 13.60%. Examining the food at-home and away-from-home expenditures, Self-Employed Workers spent $4,255 on food at-home purchases, more than any other group, and were followed by Managers and Professionals, who spent $3,943. Conversely, Managers and Professionals made the most food away-from-home expenditures, 49.16% of their total at $3,814, while Self-Employed Workers followed with $3,497. Further analysis of food athome expenditures reveals that every group spent the largest portion of their budget on Other/Miscellaneous Foods, then Meats, Poultry Fish and Eggs. Operators, Fabricators and Laborers spent the highest percentage of their food expenditures on Meats, 16.08%, followed by retirees, who spent a higher portion of their total expenditures on all other major food categories besides "Other Food At Home" than any group surveyed. Overall, while Self-Employed Workers and Wage and Salary Earners divided their expenditures among the food at-home categories comparably, greater differences were seen among the different occupations and expenditure totals in the away-from-home category. Those with the lowest average annual expenditures had the highest portion allotted to food, while Managers & Professionals with the highest annual expenditures spent the lowest percentage of that total on food. Lower annual expenditure totals also showed an increased rate of food at-home purchases, while the inverse is true for occupations with high annual expenditure totals. The statistics indicate that consumers continue to spend similar amounts on food athome regardless of their income, but those with greater total expenditures tend to indulge more on away-from-home dining. Demographics of Consumer Food Spending, 2008 Edition 5

20 Year Average Annual Expenditures Average Annual Household Food Expenditures: Ten Year History Total Food Food As Percent of Expenditures Food At- Home At-Home Percent of Total Food Expenditures At-Home Percent of Average Annual Expenditures Food Away- From- Home Away-From- Home Percent of Total Food Expenditures Away-From- Home Percent of Average Annual Expenditures 2006 $48,398 $6, % $3, % 7.1% $2, % 5.6% 2005 $46,409 $5, % $3, % 7.1% $2, % 5.7% 2004 $43,395 $5, % $3, % 7.7% $2, % 5.6% 2003 $40,817 $5, % $3, % 7.7% $2, % 5.4% 2002 $40,677 $5, % $3, % 7.6% $2, % 5.6% 2001 $39,518 $5, % $3, % 7.8% $2, % 5.7% 2000 $38,045 $5, % $3, % 7.9% $2, % 5.6% 1999 $36,995 $5, % $2, % 7.8% $2, % 5.7% 1998 $35,535 $4, % $2, % 7.8% $2, % 5.7% 1997 $34,819 $4, % $2, % 8.3% $1, % 5.5% Demographics of Consumer Food Spending

21 Average Annual Household Expenditures, Food At-Home vs. Food Away-From-Home $2, % $2,634 $2, % 42.1% $2,211 $2,276 $2, % 42.3% 42.0% $2, % $2, % $2,030 $1, % 40.0% $3, % $3,297 $3, % 57.9% $3,129 $3,099 $3,086 $3,021 $2,915 $2,780 $2, % 57.7% 58.0% 58.6% 57.9% 57.8% 60.0% Food At Home Food Away From Home Demographics of Consumer Food Spending, 2008 Edition 7

22 Average Household Food Expenditures Increase 27.3% Since 1997 $6,111 $5,931 $5,781 $5,340 $5,375 $5,321 $5,158 $5,031 $4,810 $4, Demographics of Consumer Food Spending, 2008 Edition 8

23 Average Household At-Home Food Expenditures Increase 18.6% Since 1997 Source: Food Institute analysis based on bureau of Labor Statistics' 2006 Consumer Expenciture Survey $3,417 $3,297 $3,347 $3,129 $3,099 $3,086 $3,021 $2,915 $2,780 $2, Demographics of Consumer Food Spending, 2008 Edition 9

24 Average Household Away-From-Home Food Spending Increased 40.2% Since 1997 $2,694 $2,634 $2,434 $2,211 $2,276 $2,235 $2,137 $2,116 $2,030 $1, Demographics of Consumer Food Spending, 2008 Edition 10

25 Majority Of Household At-Home Food Spending Went Toward Meats, Poultry, Fish & Eggs and 'Other' Foods Source: Food Institute analysis based on Bureau of Labor Statistics' 2006 Consumer Expenditure Survey Meats, Poultry, Fish, And Eggs: 23.3% Other Food At Home: 35.5% *Other Food At Home includes nonalcoholic beverages, fats & oils (salad dressing, peanut butter, etc.), sugar & other sweets, and miscellaneous foods (frozen prepared meals, canned and packaged soups, snacks, condiments, food for out-of-town trips, etc.) Dairy Products: 10.8% Cereals And Bakery Products: 13.1% Fruits And Vegetables: 17.3% Total At-Home Food Spending: $3,417 Demographics of Consumer Food Spending, 2008 Edition 11

26 Households Spent The Most At-Home Food Dollars On Meats, Poutlry, Fish & Eggs In 2006 Meats, Poultry, Fish, And Eggs: $797 Fruits And Vegetables: $592 Cereals And Bakery Products: $446 Dairy Products: $368 Other Food At Home: $1,212 Demographics of Consumer Food Spending, 2008 Edition 12

27 Number of Consumer Units (000) Average Annual Expenditures Average Number of Persons Item Average Annual Household Food Expenditures During ,843 $48, Dollars Spent Distribution of Food Dollars % of Average Annual Expenditures Food: $6, % 12.6% Food At Home: $3, % 7.1% Meats, Poultry, Fish, And Eggs: $ % 1.6% Beef $ % 0.5% Pork $ % 0.3% Poultry $ % 0.3% Fish And Seafood $ % 0.3% Other Meat $ % 0.2% Eggs $ % 0.1% Fruits And Vegetables: $ % 1.2% Fresh Fruits $ % 0.4% Fresh Vegetables $ % 0.4% Processed Fruits $ % 0.2% Processed Vegetables $ % 0.2% Cereals And Bakery Products: $ % 0.9% Bakery Products $ % 0.6% Cereals And Cereal Products $ % 0.3% Dairy Products: $ % 0.8% Other Dairy Products $ % 0.5% Fresh Milk And Cream $ % 0.3% Other Food At Home: $1, % 2.5% Miscellaneous Foods $ % 1.3% Nonalcoholic Beverages $ % 0.7% Sugar And Other Sweets $ % 0.3% Fats And Oils $ % 0.2% Food For Out-Of-Town Trips $ % 0.1% Food Away From Home $2, % 5.6% Alcoholic Beverages $ % Demographics of Consumer Food Spending, 2008 Edition 13

28 Beef Constituted The Largest Portion of Spending within Meats, Poultry, Fish & Egg Category In 2006 Source: Food Institute Analysis Based on Bureau of Labor Statistics' 2006 Consumer Expenditure Survey Eggs 4.6% Other Meat 13.2% Beef 29.6% Fish & Seafood 15.3% Total Spending on Meats Poultry, Fish & Eggs: $797 Poultry 17.7% Pork 19.7% Demographics of Consumer Food Spending, 2008 Edition 14

29 Fresh Products Constitute The Largest Portion of Spending on Fruits & Vegetables In 2006 Processed Vegetables 16.0% Fresh Fruits 32.9% Processed Fruits 18.4% Total Spending on Fruits & Vegetables: $592 Fresh Vegetables 32.6% Demographics of Consumer Food Spending, 2008 Edition 15

30 Bakery Spending Outweighs 2006 Spending On Cereal and Cereal Products Source: Food Institute Analysis Based on Bureau of Labor Statistics' 2006 Consumer Expenditure Survey Cereals And Cereal Products 32.0% Total Spending on Cereals & Bakery Products: $446 Cereals & Cereal Products includes ready-to-eat and cooked cereals, pasta, flour, and other products such as cornmeal, corn starch and rice, etc. Bakery Products 68.0% Bakery Products includes bread, crackers & cookies, cakes, cupcakes, pies, and frozen & refrigerated bakery prodcuts, etc. Demographics of Consumer Food Spending, 2008 Edition 16

31 Spending On Dairy Products Other Than Milk Accounted For The Majority Of 2006 Household Dairy Expenditures Fresh Milk And Cream 38% This includes fresh whole milk, as well as whipping cream, fresh sour cream, etc. Other Dairy Products 62% Other dairy products includes butter, cheese, ice cream, yogurt, etc. Total Spending on Dairy Products: $368 Demographics of Consumer Food Spending, 2008 Edition 17

32 Average Annual Household Food Expenditures (1 year change) (5 year change) vs vs. Number of Consumer Units (000) 118, , , , , , Average Annual Expenditures $48,398 $46,409 $40,817 $40,677 $39,518 $38, % 27.21% Average Number of Persons same for all years Food: $6,111 $5,931 $5,781 $5,340 $5,375 $5, % 14.85% Food At Home: $3,417 $3,297 $3,347 $3,129 $3,099 $3, % 10.73% Meats, Poultry, Fish, And Eggs: $797 $764 $880 $825 $798 $ % -3.74% Beef $236 $228 $265 $246 $231 $ % -4.84% Pork $157 $153 $181 $171 $167 $ % % Poultry $141 $134 $156 $145 $144 $ % -7.24% Fish And Seafood $122 $113 $128 $124 $121 $ % 7.02% Other Meat $105 $103 $108 $102 $101 $ % 2.94% Eggs $37 $33 $42 $37 $34 $ % 5.71% Fruits And Vegetables: $592 $552 $561 $535 $552 $ % 13.41% Fresh Fruits $195 $182 $187 $171 $178 $ % 21.88% Fresh Vegetables $193 $175 $183 $172 $175 $ % 19.14% Processed Fruits $109 $106 $110 $108 $116 $ % -6.03% Processed Vegetables $95 $89 $82 $84 $83 $ % 13.10% Cereals And Bakery Products: $446 $445 $461 $442 $450 $ % -1.33% Bakery Products $304 $302 $307 $292 $296 $ % 2.70% Cereals And Cereal Products $143 $143 $154 $150 $154 $ % -8.33% Dairy Products: $368 $378 $371 $328 $328 $ % 10.84% Other Dairy Products $228 $232 $226 $201 $201 $ % 16.33% Fresh Milk And Cream $140 $146 $144 $127 $127 $ % 2.94% Other Food At Home: $1,212 $1,158 $1,075 $999 $970 $ % 27.31% Miscellaneous Foods $627 $609 $527 $490 $472 $ % 37.80% Nonalcoholic Beverages $332 $303 $290 $268 $254 $ % 29.69% Sugar And Other Sweets $125 $119 $128 $119 $117 $ % 7.76% Fats And Oils $86 $85 $89 $86 $85 $ % -1.15% Food For Out-Of-Town Trips $43 $41 $41 $36 $41 $ % 13.16% Food Away From Home $2,694 $2,634 $2,434 $2,211 $2,276 $2, % 20.54% Alcoholic Beverages $497 $426 $459 $391 $376 $ % 42.41% Demographics of Consumer Food Spending, 2008 Edition 18

33 Expenditures For Center of the Plate Items Rebound From Steep Drop in 2005 $880 $797 $764 $825 $ Demographics of Consumer Food Spending, 2008 Edition 19