Full-Service Restaurants Roar Back from the Pandemic

At least one thing is back to normal: food-away-from-home spending has returned to its top position in the food chain. With Covid receding, or increasingly ignored, Americans in 2021 spent more on "food away from home" than they did on "food at home"—a return to the normal pattern. Not only that, but food away from home spending reached a record high in 2021 of $463 billion. This was fully 21 percent more than in 2020, after adjusting for inflation.

The category "food away from home" includes the amount spent on food purchased from full-service and fast-food restaurants, bars, vending machines, schools and colleges, and places of recreation. The category "food at home" includes the amount spent on food purchased from grocery stores, convenience and other food stores, mail order, and farmer's markets. 

Annual spending on food (in billions of inflation-adjusted dollars)

	Food at home	Food away from home	difference
2021	$430	$463	–$32
2020	$414	$382	$32
2019	$398	$454	–$56

Within the food-away-from-home category, spending at both fast-food and full-service restaurants fell in 2020. Full-service restaurant spending dropped 27 percent between 2019 and 2020, and fast-food spending fell 6 percent. The 2021 rebound in full-service restaurant spending was impressive—an increase of 45 percent to a record high of $162 billion. Fast-food spending climbed 14 percent and hit a record high of $164 billion. 

In all but four years of the USDA's Food Expenditure data series, which dates back to 1997, spending at full-service restaurants has exceeded spending at fast-food restaurants. The first time when full-service dining fell behind fast-food was in 2010, a consequence of the Great Recession, but the difference was just 0.3 percent. The next time full-service spending fell behind fast-food spending was in 2019, the year before the pandemic—again, by just 0.3 percent. In 2020, full-service spending was a stunning 22 percent below fast-food. In 2021, full-service closed most of the gap and was just 1 percent behind fast-food. 

Source: USDA, Food Expenditure Series, Constant Dollar Food and Alcohol Expenditures, with Taxes and Tips, for All Purchasers

America's Favorite Fruits

The average American eats 58 pounds of fresh fruit per year, according to the the USDA's Economic Research Service. The amount of fresh fruit consumed by the public is significantly higher than it used to be thanks to greater availability and more convenient packaging. In 1970, the average person consumed only 44 pounds of fresh fruit per year. The figure topped 50 pounds for the first time in 1986.

Bananas are the most popular fresh fruit, with the average person eating 13 pounds of bananas in 2019 (the latest data available). Here are the pounds of fresh fruit consumed per year by type of fruit (only fruits with per capita consumption of 1.0 pounds or more are shown)...

Pounds of fresh fruit consumed per capita, 2019 (edible weight)

1. Bananas: 13.4

2. Apples: 9.8 

3. Watermelon: 4.7

4. Grapes: 4.5

5. Oranges: 3.6

6. Avocados: 3.0

7. Strawberries: 2.8

8. Tangerines: 1.9

9. Pears: 1.8

10. Blueberries: 1.7

11. Limes: 1.6

12. Pineapple: 1.6

13. Mangoes: 1.5

14. Cantaloupe: 1.3

15. Lemons: 1.3

Surprisingly, peaches are not on the list of the most popular fresh fruits. The average person consumed only 0.9 pounds of fresh peaches in 2019, down from a peak of 3.2 pounds in 1980. 

Source: USDA Economic Research Service, Food Availability (Per Capita) Data System

Mushrooming Trouble

This is no joke, according to the CDC. Each year, 7,500 mushroom incidents are reported to poison control centers in the United States. To get a better handle on the problem, the CDC analyzed data on emergency department visits and hospitalizations due to poisonous mushrooms. Here are some of the findings...

• In 2016, there were 1,328 emergency department visits and 100 hospitalizations associated with "accidental poisonous mushroom ingestion." 
• 41% of those who visited an emergency department after ingesting poisonous mushrooms were children under the age of 18. 
• Males accounted for 63% of those who visited an emergency department after ingesting poisonous mushrooms. 
• The 37% plurality of emergency department visits occurred in the West.
• Among those diagnosed with ingesting poisonous mushrooms during 2016–18, 36% had gastrointestinal symptoms, 18% neurological/behavioral symptoms, and 17% cardiac symptoms.
• 8% of those diagnosed with ingesting poisonous mushrooms were involved with hallucinogenic drug use.

"Given the potential severity and preventable nature of most poisonous mushroom ingestions, wild mushrooms should not be consumed unless identified by an expert," the CDC concludes.

Source: CDC, Health Care Utilization and Outcomes Associated with Accidental Poisonous Mushroom Ingestions—United States, 2016–2018

Most Eat Sweets on an Average Day

On an average day, 70 percent of children and 61 percent of adults eat sweets, according to the USDA's Food Surveys Research Group. Notice the word "eat." These lofty percentages include only the consumption of sweet food—items such as nutrition bars, cakes, pies, cookies, doughnuts, candy, ice cream, and other solid foods with added sugar. Fruit is not included, nor are sweetened drinks. 

The types of sweets children and adults consume on an average day is surprisingly similar. Sweet bakery products comprise the largest share for both age groups (45 percent). Candy accounts for another 30 percent of the sweets consumed by children and 31 percent of the sweets consumed by adults.

On an average day, younger children are more likely than older children to eat sweets. Among adults, those aged 60-plus are more likely to eat sweets than young or middle-aged adults. 

Percent who ate sweets on an average day, 2015–18

Aged 2 to 5: 74%

Aged 6 to 11: 78%

Aged 12 to 19: 62%

Aged 20 to 39: 55%

Aged 40 to 59: 60%

Aged 60-plus: 70%

Daily calorie intake is 300 to 400 calories greater for those who eat sweets versus those who do not. Sweets account for 18 to 19 percent of the total daily calorie intake among children and for 19 percent of daily calories among adults aged 60 or older.  

Source: USDA Food Surveys Research Group, What We Eat in America, NHANES 2015–2018, Sweet Foods Consumption by Children in the U.S. and Sweet Foods Consumption by Adults in the U.S.

Big Spenders on Food

A century ago, 38 cents out of every dollar spent by the average American household was spent on food. Today, the figure is just 11 cents. Whew, right? 

Not so fast. Many Americans still spend more than one-third of their income on food—and it's not because they're dining out at fancy restaurants. The share of income a household devotes to food is greatest for households with the lowest incomes. Here is the food share of household expenditures by household income quintile...

Percent of after-tax income spent on food by household income quintile, 2019

Bottom quintile: 36%

Second quintile: 18%

Middle quintile: 14%

Fourth quintile: 11%

Highest quintile: 8%

Note: Households in the bottom income quintile have a before-tax income below $22,488; second income quintile $22,488 to $43,431; middle income quintile $43,432 to $72,233; fourth income quintile $72,234 to $120,728; highest income quintile $120,729 and above.

Source: USDA Economic Research Service, U.S. Households in the Lowest Income Quintile Spent an Average of 36 Percent of Income on Food in 2019

51% Decline in Spending on Food Away from Home

Americans spent 51 percent less on food away from home in March 2020 than in March 2019, according to the USDA's Economic Research Service. Spending on food at home was 19 percent greater than a year earlier.

Food-at-home spending is defined as spending on food at grocery stores, super centers, convenience stores, and other retailers. Food-away-from-home spending is defined as spending on food at restaurants, school cafeterias, sports venues, and other eating-out places.

Total spending on eating out, including tax and tips, was $72 billion in March 2019 and just $36 billion in March 2020. This is the smallest monthly amount spent on eating out in the history of the series, which dates back to 1997. February 2020's spending is the second lowest.

Change in spending February 2019 and February 2020 (in constant dollars)
Groceries: +6.5%
Eating-out: -39.3%

Change in spending, March 2019 and March 2020 (in constant dollars)
Groceries: +18.8%
Eating-out: -51.0%

Source: USDA Economic Research Service, Eating-Out Expenditures in March 2020 Were 51 Percent Below March 2019 Expenditures

Take-Out from Restaurants Is Essential

During a week's time, Americans eat out an average of five times a week, according to a pre-coronavirus study by the USDA's Economic Research Service. These "food-away-from-home" acquisitions, as the ERS calls them, include everything from meals at restaurants, to milk shakes from ice cream shops, tacos from food trucks, pizza deliveries, and school lunches. This means nearly one-fourth of our 21 meals a week are acquired from restaurants or other places away from home.

The coronavirus is putting a serious dent in those dining habits. No longer can we dine in a restaurant, so take-out has become the only option. Fortunately, states that have ordered non-essential businesses to close have also deemed take-out to be essential. For most of us, it is.

Weekly frequency of food-away-from-home acquisitions by age
Total adults: 4.72
Under age 25:  5.01
Aged 25 to 34: 5.31
Aged 35 to 44: 5.45
Aged 45 to 54: 5.05
Aged 55 to 64: 4.96
Aged 65 to 74: 4.28
Aged 75-plus:  3.44

Source: USDA, Economic Research Service, America's Eating Habits: Food Away from Home

Food-Related Activities Rank 4th in Time Use

How much of your day revolves around food? If you're an average American, then it's a lot. Food-related activities rank fourth in the amount of time they consume, according to a study by the USDA's Economic Research Service, behind only sleep, paid work, and watching TV.

Americans spent an average of 117.5 minutes a day in food-related activities during the 2014–17 time period, the study finds. That's 8.2 percent of 24 hours. Food-related activities include traveling to grocery stores and restaurants, shopping for food, preparing meals, eating and drinking, and loading the dishwasher. Here's how much time the average person and the average participant spend per day in each of the major categories of food-related activities...

Eating and drinking

Average time: 64.0 minutes

Percent participating: 95.1%

Time spent by participants: 67.3 minutes

Food preparation

Average time: 27.5 minutes

Percent participating: 53.5%

Time spent by participants: 51.4 minutes

Food-related cleanup

Average time: 7.7 minutes

Percent participating: 22.6%

Time spent by participants: 34.1 minutes

Travel associated with eating

Average time: 6.5 minutes

Percent participating: 22.9%

Time spent by participants: 28.3 minutes

Grocery shopping

Average time: 6.3 minutes

Percent participating: 13.8%

Time spent by participants: 46.0 minutes

Travel for grocery shopping

Average time: 3.3 minutes

Percent participating: 13.7%

Time spent by participants: 24.4 minutes

Purchasing non-grocery food

Average time: 1.5 minutes

Percent participating: 13.5%

Time spent by participants: 10.9 minutes

Source: USDA Economic Research Service, Food-Related Time Use: Changes and Demographic Differences

Fun Facts about Food

The folks who work for the USDA's Economic Research Service must have a lot of fun analyzing how food fits into the daily routine of the average American. It boggles the mind how much information ERS researchers Tobenna D. Anekwe and Eliana Zeballos have extracted from the American Time Use survey to reveal our relationship with food—not just eating and drinking, but also traveling to the store, shopping, food preparation and cleanup. These details are presented in their study, Food-Related Time Use: Changes and Demographic Differences.

Let's start with why it matters.  Food-related activities, say the researchers, rank fourth among the most common activities in which Americans participate on an average day—behind only sleep, paid work, and watching television. Here are a few of the fun facts about food the researchers detail in their study, which also explores demographic differences in food-related activities and trends over the past decade...

• 95%: Percentage who participate in primary eating and drinking on an average day (meaning their main activity at the time).
• 64.0 minutes: Average minutes per day the average person spends eating and drinking as a primary activity. 
• 53%: Percentage who participate in secondary eating and drinking on an average day (meaning they are primarily doing something else—such as watching television or working).
• 16.8 minutes: Average minutes per day the average person spends eating and drinking as a secondary activity .
• 6 hours 23.4 minutes: Time Americans spend between primary eating and drinking occasions.
• 1.99: Number of primary eating and drinking occasions Americans engage in on an average day.
• 53%: Percentage who participate in food preparation on an average day.
• 51.1 minutes: Time spent preparing food by those who engage in food preparation.
• 23%: Percentage who participate in food cleanup on an average day.
• 34.1 minutes: Time spent in cleanup by those who engage in food cleanup.
• 14%: Percentage who shop for groceries on an average day.
• 24.4 minutes: Time those who shop for groceries spend getting to the store. 
• 46.0 minutes: Time those who shop for groceries spend in the store. 
• 6:00 to 6:59 pm: Time of day when the most people (32%) are engaged in primary eating and drinking on an average day. Second is 12:00 to 12:59 pm, at 30%. Third is 7:00 to 7:59 am, at 15%.

Source: USDA Economic Research Service, Food-Related Time Use: Changes and Demographic Differences

Snacking in the Evening

Most Americans are late evening snackers, according to the USDA Food Surveys Research Group, which defines late evening as 8 pm to midnight. On an average day, 64 percent of people aged 20 or older "consumed one or more foods or beverages other than plain water in the late evening." So what, you say? The USDA is interested in this behavior because of its "potential negative implications for health."

The prevalence of late evening snacking is greatest among young adults. Fully 68 percent of people aged 20 to 39 consume something more than just plain water between 8 and 11:59 pm on an average day. Among 40-to-59-year-olds, 65 percent snack in the late evening. Among people aged 60 or older, the figure is 59 percent.

Now for the potential negative implications: Late evening snacking is not calorie free. On average, the food and drinks consumed in the late evening add up to 16 percent of the daily calories of snackers. Perhaps consequently, late evening snackers consume more calories on an average day than those who do not snack in the evening—2,243 calories per day for snackers and 1,906 calories for nonsnackers.

The snackers are veritable vacuum cleaners in the kitchen. The foods and beverages being consumed by late night snackers include sweet bakery products (17 percent of late night snackers), candy (10 percent), sandwiches (9 percent), poultry (5 percent), white potatoes (6 percent), fruit (11 percent) cheese and yogurt (5 percent), regular soft drinks (9 percent), diet soft drinks (4 percent), tea (8 percent), milk (6 percent), coffee (4 percent), and alcoholic beverages (14 percent). Among those who report drinking alcohol between 8 and midnight, nearly half of the alcohol they drink all day is consumed during those hours.

Source: USDA, Food Surveys Research Group, Late Evening Food and Beverage Consumption by Adults in the U.S.

How Close is Your Grocery Store?

How far do Americans live from the nearest supermarket? Using a combination of store and population data, the USDA's Economic Research Service estimated how far Americans have to go to get to the nearest store.

Percent distribution of population by distance to nearest supermarket
Under 0.5 miles: 30.0%
0.5 to 1.0 miles: 29.9%
More than 1.0 miles: 40.0%

The median distance to the nearest supermarket for the population as a whole is 0.88 miles. Not surprisingly, people in urban areas are closer to a food store than those in rural areas. The median distance to the nearest supermarket for people in urban areas is 0.69 miles, while people in rural areas are a median of 3.11 miles from the nearest store.

"Accessing affordable and nutritious food is a challenge for many Americans," explains the report. One of the goals of the analysis was to determine how many Americans live in census tracts with "low access" to food stores. Low access is defined, for urban residents, as living more than 1 mile from the nearest supermarket. For rural residents, low-access is defined as living more than 10 miles from the nearest store. The state with the largest share of low-access census tracts relative to the state's total census tracts is South Dakota (62.6 percent).

Another goal of the analysis was to determine how many Americans live in census tracts that are both low access and low income. The state with the largest share of low-access/low-income census tracts relative to the state's total census tracts is Mississippi (31.3 percent).

Source: USDA Economic Research Service, Understanding Low-Income and Low-Access Census Tracts Across the Nation: Subnational and Subpopulation Estimates of Access to Healthy Food

Baby Food Spending Plunges

The ongoing baby bust is being felt in at least one grocery store aisle. Average household spending on baby food fell 64 percent between 2007 (the year births peaked in the U.S.) and 2017, according to the Bureau of Labor Statistics' Consumer Expenditure Survey.

Average household spending on baby food (in 2017 dollars)
2017: $18.16
2010: $40.19
2007: $50.05

Beyond the decline in births, the other factor dragging down spending on baby food is the greater propensity of parents to make their own rather than relying on the store bought variety. That helps to explain why spending on baby food fell more than twice as much as spending on infants' clothes during the past decade. Between 2007 and 2017, average household spending on clothes for children under age 2 fell from $110 to $77, after adjusting for inflation—a 30 percent decline.

Source: Demo Memo analysis of the Consumer Expenditure Survey

The 6 Most Commonly Purchased Groceries

During an average week, nearly every household spends money on groceries. But shopping carts are disproportionately filled with only a handful of items. These are the 6 items purchased by at least one-third of households during the average week of 2017...

Percent of households buying item in an average week
1. Fresh fruit: 56%
2. Fresh vegetables: 56%
3. Milk: 47%
4. Bread: 44%
5. Cheese: 39%
6. Prepared food from the supermarket deli: 38%

Bananas are the most frequently purchased fruit (34 percent). Tomatoes are the most frequently purchased vegetable (22 percent). During an average week, nonwhite bread is added to more shopping carts (40 percent) than white bread (35 percent).

Source: Demo Memo analysis of the 2017 Consumer Expenditure Survey

Millennial Food Purchasing Patterns

Millennials purchase food differently than older generations, according to a study by the USDA's Economic Research Service. Some of the differences are age related but some may be a sign of changing food preferences, the study suggests. Here are some of the differences...

• Millennials are least likely to eat at home on an average day. Only 36 percent of Millennial eating occasions occur at home on an average day. Among Gen Xers the figure is 39 percent, Boomers 41 percent, and older Americans 50 percent. 
• Millennials are most likely to purchase fast food during an average week. In the past week, 62 percent of Millennials had purchased prepared food from a fast-food restaurant, carry-out, or food delivery, the study reports. This compares with 56 percent of Gen Xers, 59 percent of Boomers, and 47 percent of older Americans. 
• Millennials make the fewest trips to food stores during an average month. Millennial households visit food stores an average of 5.33 times per month. Frequency rises with age. Gen Xers make 6.27 visits to food stores per month, Boomers 7.33, and older Americans 7.78.
• Millennials spend less than other generations on groceries. Millennials spend $94 per capita on groceries during an average month. Gen Xers spend $102, Boomers $144, and older Americans $159. Regardless of income level, Millennials spend less per capita on groceries than older generations. 
• Millennial grocery shoppers allocate a larger share of their food dollar to prepared food. When Millennial households shop for groceries, they devote 7.48 percent of their grocery dollar to prepared food. The older generations devote less than 7 percent to prepared food. The USDA defines prepared food as food that requires minimal or no preparation after purchase, such as sandwiches and salads from the grocery deli, prepared chicken, frozen pizza, and so on. 

The food shopping patterns of Millennials are shaped by the fact that most are young adults, the study notes. But there are indications that Millennials have unique food preferences. After controlling for income, for example, the per capita spending of Millennials on fruit matches the spending of older Americans—who are the biggest spenders on fruit. As the income of Millennials rises, their per capita spending on vegetables also rises. "The Millennial generation may have a stronger preference for fruits and vegetables compared to older generations," the study concludes. Another difference: Millennials may have "become accustomed to consuming foods requiring minimal preparation effort."

Source: USDA Economic Research Service, Food Purchase Decisions of Millennial Households Compared to Other Generations

Soft Drinks Are 20% of Youth Beverage Consumption

Soft drinks account for a large share of youth beverage consumption, according to the National Health and Nutrition Examination Survey. The survey, which collects data on food and beverage consumption through a 24-hour dietary recall interview, provides a snapshot of what Americans  eat and drink on an average day. Among children and teenagers ranging in age from 2 to 19, this is the distribution of the beverages they consume in a 24-hour period...

Distribution of beverages consumed by 2-to-19-year-olds on an average day
43.7% water
21.5% milk
19.9% soft drinks
7.6% other beverages*
7.3% juice (100 percent)

Beverage consumption varies by age, of course. Among preschoolers aged 2 to 5, milk accounts for 32 percent of daily beverage consumption. The milk share falls to 24 percent among 6-to-11-year-olds and to 14.5 percent among 12-to-19-year-olds. What replaces milk? Primarily soft drinks, which account for 13 percent of the daily beverage consumption of 2-to-5-year-olds, 21 percent of the consumption of 6-to-11-year-olds, and 22 percent of the beverages consumed by 12-to-19-year-olds.

*Other beverages include coffee, tea, sports and energy drinks, and other miscellaneous beverages. Alcoholic beverages are not included.
Source: National Center for Health Statistics, Beverage Consumption among Youth in the United States, 2013–2016

Winners and Losers in the Grocery Store, 2006 to 2016

When Americans shopped for groceries a decade ago, beef was number-one on the shopping list—the item on which the average household spent the most money. Today, the number-one expenditure is fresh fruit, followed by fresh vegetables. Beef is now in third place. Between 2006 and 2016, average household spending on beef—which includes everything from ground beef to steak and roasts—fell 13 percent after adjusting for inflation. In contrast, average household spending on fresh fruit climbed 24 percent, and fresh vegetable spending was up 10 percent. Here are some of grocery's biggest winners and losers during the decade...

Selected items with double-digit gain in average household spending, 2006–16 (in 2016 dollars)
Coffee: 61%
Rice: 45%
Spices: 43%
Cream: 33%
Nuts: 30%
Butter: 29%
Eggs: 28%
Fruit, fresh: 24%
Bacon: 19%
Vegetables, fresh: 10%

Selected items with double-digit loss in average household spending, 2006–16 (in 2016 dollars)
Fish:–10%
Beef: –13%
Carbonated drinks: –15%
Fruit juice, bottled: –16%
Ice cream: –20%
Cereal: –20%
Milk, fresh: –23%
Margarine: –30%
Fruit juice, fresh: –42%
Baby food: –42%

Of course, these lists cannot determine whether our diet has improved over the decade. Although Americans are spending less on carbonated drinks and ice cream at the grocery store, they may be gorging on these items at restaurants instead.

Source: Demo Memo analysis of the Consumer Expenditure Survey

17.5 Teaspoons of Added Sugars Per Day

The average American adult (aged 20 or older) eats 17.5 teaspoons of added sugars per day. Added sugars are those added to foods and beverages during production or preparation, including high fructose corn syrup used in soft drinks, ketchup, and other processed food. Do the math, and those 17.5 teaspoons of added sugars are 70 grams a day—far above the 37.5 grams for men and 25.0 grams for women recommended by the American Heart Association. This is where those added sugars come from...

Added sugars consumed daily by adults
Total added sugars: 72.8 grams (100%)
Food at home: 54.8 grams (75%)
Sit-down restaurants: 4.2 grams (6%)
Take-out and fast food: 6.4 grams (9%)
School, other: 7.4 grams (10%)

Source: USDA Economic Research Service, Food Consumption and Nutrient Intakes, Average Daily Intake of Food by Food Source and Demographic Characteristics, 2007–10

Carbonated Beverages as a Share of Grocery Spending

The New York Times created a stir when it reported on a USDA study with the alarming headline, "In the Shopping Cart of a Food Stamp Household: Lots of Soda." Yes, the USDA study found food stamp households devoting a large share of their grocery spending to carbonated beverages. But so did households that were not receiving food stamps. The real story in the USDA study is the outsized importance of soda in the shopping cart of most American households regardless of demographic or socioeconomic characteristic.

The USDA findings were based on point-of-sale data from a leading grocery retailer—data that could be skewed by the retailer's own customer demographics. Using a different and more comprehensive data set (the 2015 Consumer Expenditure Survey), Demo Memo calculated the carbonated beverage share of spending for the average household and for households by demographic characteristic. The share is huge, regardless of the demographics. For the average household, soda ranks 4th as a share of grocery spending. In other words, carbonated beverages are the grocery item on which the average household spends more than all but three other items—fresh fruit, fresh vegetables, and miscellaneous prepared food (i.e. food from the supermarket deli). The carbonated beverage share of grocery spending varies a little—but not all that much—by demographic characteristic...

• Carbonated beverage share is highest among low-income households: Among households with incomes below $30,000, carbonated beverages rank 3rd as a share of grocery spending. Among households with incomes of $200,000 or more, they are in 14th place.
• Carbonated beverage share is highest in two age groups: Soda ranks highest as a share of grocery spending among households headed by young adults under age 25 and older adults aged 55 to 64 (4th place). Soda is lowest as a share of grocery spending among householders aged 35 to 44 (7th place) because many are parents, and parents devote less of the grocery dollar to carbonated beverages. 
• Carbonated beverage share is highest for the less educated: Among households in which no household member has a bachelor's degree, soda ranks 3rd as a share of grocery spending. Among households with at least one college graduate, carbonated beverages rank 10th as a share of grocery spending. 

Source: USDA study Foods Typically Purchased by Supplemental Nutrition Assistance Program (SNAP) Households and Demo Memo analysis of the 2015 Consumer Expenditure Survey

The Food Dollar: 50% Devoted to Restaurants

When Americans buy food, they devote most of their budget to convenience, according to the USDA's Economic Research Service. Half of the average household's food budget is devoted to the most convenient food of all—restaurant meals. Another 26 percent is spent on ready-to-eat or ready-to-cook foods. Only 5 percent of the food dollar is spent on basic ingredients. Here's how the average American household allocates its food spending...

Distribution of household spending on food by food convenience type
Fast-food restaurants: 27 percent. Defined as meals and snacks at establishments where customers order and pay for food at a counter.
Sit-down restaurants: 23 percent. Defined as meals and snacks at establishments where customers order and pay for food from waitstaff.
Ready-to-eat food: 18 percent. Defined as meals and snacks intended to be consumed as is, requiring no preparation beyond opening a container such as yogurt, candy, flavored milk, etc.
Complex ingredients: 18 percent. Defined as processed food usually composed of multiple ingredients such as bread, pasta, lunch meat, cereal, etc.
Ready to cook food: 8 percent. Defined as meals and snacks that require minimal preparation involving heating, cooking, or adding hot water such as frozen pizza, pudding mixes, soup, etc.
Basic ingredients: 5 percent. Defined as raw or minimally processed food usually composed of a single ingredient such as milk, rice, butter, fresh meat, fruit, and vegetables.

Source: USDA, Economic Research Service, U.S. Households' Demand for Convenience Foods

Seismic Shift in Spending on Groceries

There has been "a seismic shift in how people eat," according to a New York Times headline. Per capita consumption of soda, orange juice, and cereal are all down as Americans more fresh food and less sugar, reports the Times. Consumer Expenditure Survey data confirm the Times story. Here are the trends in average household spending for selected groceries between 2006 (the year overall household spending peaked) and 2014....

Percent change in average household spending, 2006 to 2014 (in 2014 dollars)
23% decline in spending on ice cream
23% decline in spending on fresh fruit juice
22% decline in spending on cakes and cupcakes
16% decline in spending on carbonated drinks
16% decline in spending on canned and bottled fruit juice
10% decline in spending on cookies
9% decline in spending on cereal
5% decline in spending on candy and chewing gum

In contrast to these declines, the average household spent more on: bacon (31%), yogurt (31%), nuts (23%), fresh fruit (19%), and fresh vegetables (6%). Clearly, the New York Times is on to something.

Source: Demo Memo analysis of the Bureau of Labor Statistics' Consumer Expenditure Surveys