A new study by commodity intelligence platform Vesper Tool has identified which states spend the highest percentage of their total consumption on groceries, with Mississippi residents allocating the largest portion of their spending on food at home.
The analysis examined personal consumption expenditure data from the Bureau of Economic Analysis to determine how much each state's residents spend on groceries compared to their total consumption across all categories.
Mississippi residents spend 8.46% of their total consumption on groceries, the highest percentage in the nation. With total consumption reaching $123.9 billion in 2023, Mississippians spent $10.5 billion on groceries throughout the year, according to the findings.
Hawaii ranks second, with residents spending 8.04% of their total consumption on groceries. Despite having a much smaller population than Mississippi, Hawaii's total grocery consumption reached $6.7 billion in 2023, representing a significant portion of the state's $83.4 billion in total spending.
West Virginia ties in second place, also spending 8.04% of total consumption on groceries. The state's 1.77 million residents spent $6.8 billion on groceries from their total consumption of $84.2 billion in 2023.
Kansas ranks third with grocery spending at 8.01% of total consumption. Kansans spent $11.6 billion on groceries from their $145.1 billion in total consumption last year.
Kentucky lands in fourth place with residents spending 7.77% of their total consumption on groceries. The state's 4.5 million residents spent $16.6 billion on groceries from their total consumption of $214 billion.
Montana rounds out the top five, with grocery spending accounting for 7.58% of total consumption. Residents spent $4.7 billion on groceries from a total consumption of $62.6 billion in 2023.
Georgia takes sixth place with residents allocating 7.49% of their spending to groceries. With a much larger population of over 11 million, Georgians spent $41.5 billion on groceries from a total consumption of $554.6 billion.
Maine also records a grocery spending rate of 7.49%, joining Georgia at sixth place in the rankings. Maine residents spent $6.3 billion on groceries from their total consumption of $84.1 billion.
South Carolina ranks seventh with residents spending 7.48% of their total consumption on groceries. South Carolinians allocated $19.8 billion to groceries from a total of $264.7 billion in consumption.
Alabama ranks eighth with residents spending 7.38% of their total consumption on groceries. Alabamians spent $16.8 billion on groceries from their total consumption of $227.5 billion in 2023.
Rounding out the top ten states are Oregon, spending 7.37% on groceries, and Vermont, with groceries costing 7.32% of their total consumption.
Top 10 States Spending the Most on Groceries
Rank | State | Total Consumption ($bn) | Grocery Consumption ($bn) | Percentage of Spending on Groceries |
1 | Mississippi | $123.9 | $10.5 | 8.46% |
=2 | Hawaii | $83.4 | $6.7 | 8.04% |
=2 | West Virginia | $84.2 | $6.8 | 8.04% |
3 | Kansas | $145.1 | $11.6 | 8.01% |
4 | Kentucky | $214.0 | $16.6 | 7.77% |
5 | Montana | $62.6 | $4.7 | 7.58% |
=6 | Georgia | $554.6 | $41.5 | 7.49% |
=6 | Maine | $84.1 | $6.3 | 7.49% |
7 | South Carolina | $264.7 | $19.8 | 7.48% |
8 | Alabama | $227.5 | $16.8 | 7.38% |
9 | Oregon | $234.6 | $17.3 | 7.37% |
10 | Vermont | $38.2 | $2.8 | 7.32% |
At the other end of the spectrum, Minnesota residents spend the lowest percentage of their total consumption on groceries at just 5.37%. Minnesotans allocated $17.4 billion to groceries from their total consumption of $324.1 billion in 2023.
North Dakota ranks second lowest, with residents spending 5.68% of their total consumption on groceries. North Dakotans spent $2.5 billion on groceries from their total consumption of $43.7 billion.
Massachusetts has the third lowest percentage, with residents spending 5.73% of their total consumption on groceries. Massachusetts residents allocated $27.7 billion to groceries from their total consumption of $483.8 billion in 2023.
New Jersey also ranks third, with grocery spending accounting for 5.73% of total consumption. New Jersey residents spent $34 billion on groceries from a total consumption of $592.9 billion.
New York ranks fourth with residents spending 5.75% of their total consumption on groceries. New Yorkers allocated $71.8 billion to groceries from their total consumption of over $1 trillion.
Maryland completes the bottom five, with residents spending 5.77% of their total consumption on groceries. This amounts to $20 billion.
States Spending the Least on Groceries
Rank | State | Total Consumption ($bn) | Grocery Consumption ($bn) | Percentage of Spending on Groceries |
1 | Minnesota | $324.1 | $17.4 | 5.37% |
2 | North Dakota | $43.7 | $2.5 | 5.68% |
=3 | Massachusetts | $483.8 | $27.7 | 5.73% |
=3 | New Jersey | $592.9 | $34.0 | 5.73% |
4 | New York | $1,248.1 | $71.8 | 5.75% |
5 | Maryland | $346.4 | $20.0 | 5.77% |
Alexander Sterk, Founder and CEO of Vesper Tool commented on the findings:
"These statistics show that grocery spending varies significantly across different states, with up to a 3-percentage point difference between the highest and lowest states. This variation reflects differences in food costs, income levels, and consumer preferences across regions.
"The fact that Southern states dominate the top of the list while Northeastern states make up most of the bottom five suggests regional economic factors are at play. States with lower average incomes often see residents spending a higher percentage of their total consumption on essential items like groceries. The logistics of getting food to stores in these regions can impact total cost, which drives up the percentage people are spending.
"While the total dollar amount spent on groceries is much higher in populous states like California and New York, the percentage of spending tells a different story about the relative impact of food costs on residents in different areas of the country."
Post courtesy https://vespertool.com/
Methodology:
For each state, personal consumption expenditure (PCE) data was retrieved from the Bureau of Economic Analysis, broken down by spending category. Spending categories were grouped into more meaningful categories and found as a percentage of total spending across all categories, as well as calculated as a dollar amount per capita. The states were then ranked by percentage of spending on groceries.
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