“Americans pay less for their food than consumers in any other country.”

Do Americans pay less for food than any other country? Although the numbers vary from one data set to another, and from year to year (depending somewhat on food prices but mostly on exchange rates), the answer depends not so much on the year of comparison or whose numbers are used, as on the precise meaning of the question. I present three alternatives.

Q1 Do Americans, in total, spend less on food than citizens of other countries?

No. Because the U.S. has a large and affluent population, in total, Americans spend more on food than all other countries except China. According to World Bank data, the U.S. spent $833 billion buying food in 2007, far more than the $11.6 billion spent in 2007 by the 4.5 million residents of Singapore, for example. China spent slightly over $1 trillion on food in 2007 to feed their population of 1.3 billion people. The Japanese were third in total national expenditure on food spending $665 billion in 2007. Germany and France ranked fourth and fifth, respectively.

Source: 1,2,3

Q2 Do Americans spend less per person on food than the citizens of other countries?

Yes and No. The average American spent $2762 for food in 2007, which is one of the higher levels in the world. For many people in poor countries, total expenditures for all items are lower than what Americans spend on food. For example, in 2007 the per capita income in Bangladesh averaged only $470. Americans did spend less per person buying food in 2007 than did residents of Japan ($5215), France ($4929), Germany ($3899), and the United Kingdom ($3090); but far more than residents of Morocco ($813), Philippines ($586), India ($299) and Vietnam ($278).

Source: 1,2,3

Q3 Do Americans spend a smaller percent of their income on food than citizens of other countries?

Yes. In 2007, only 6.0% of expenditures by the average American were to buy food. That is the lowest in the world according to the World Bank. By comparison, the French spent 12.7% and Russians 27.1% of their respective 2007 expenditures on food. As a general rule, the wealthier the nation, the smaller the share of income spent on food.

Food as portion of
Nation total expenditures

Nation	Food as portion of total expenditures
U.S.A.	6.0%
United Kingdom	7.6%
Singapore	7.8%
Germany	10.0%
France	12.7%
Japan	13.8%
Hungary	14.5%
South Korea	14.6%
Czech Republic	14.6%
South Africa	19.0%
Mexico	21.1%
Chile	22.5%
Turkey	23.3%
Brazil	24.0%
Colombia	24.9%
Bulgaria	26.0%
Russia	27.1%
India	31.5%
Romania	31.5%
China	34.0%
Morocco	35.3%
Vietnam	36.1%
Philippines	36.2%
Ukraine	39.6%
Indonesia	43.3%

Source: World Bank, Euromonitor, 2008

A related question is: Are Americans spending more on food today than they did in the past? Again the precise meaning of the question is important. I offer four alternatives.

Q4 Are Americans spending more, in total, on food and beverages than in the past?

Yes. According to USDA, in 2007, Americans spent a record $997.3 billion on food and beverages. Because of inflation, a growing population, and increased consumption per person (just check people’s waistlines), total food expenditures by Americans increase in most years. The last year total U.S. food expenditures were down was 1949.

Source: USDA/ERS: Food CPI, Prices and Expenditures: Food Expenditures by Families and Individuals as a Share of Disposable Personal Income.

Q5 Are Americans spending more per person on food and beverages than in the past?

Yes. In 2007, the average American spent a record $3,310 on food and beverages. Because of inflation, food expenditures increase in most years. The last year U.S. per capita food expenditures were down was 1992.

Source: USDA/ERS: Food CPI, Prices and Expenditures: Food Expenditures by Families and Individuals as a Share of Disposable Personal Income.

Q6 Adjusted for inflation, are Americans spending more per person on food than in the past?

Yes. Even adjusted for inflation, U.S. per capita food expenditures are rising. The last year inflation adjusted U.S. per capita spending on food was less than the year before was 2000.

Source: USDA/ERS: Food CPI, Prices and Expenditures: Food Expenditures by Families and Individuals as a Share of Disposable Personal Income.

Q7 Are Americans spending a larger share of their disposable income on food than in the past?

No. In 2007, Americans spent 9.8% of their disposable income on food and beverages. It has been lower only once, 9.7% in 2004.

U.S. Food Expenditures as a Share of Disposable Income, 1929-2007

Year	Percent	|	Year	Percent	|	Year	Percent
1929	23.4		1956	18.1		1983	12.5
1930	24.2		1957	18.4		1984	11.9
1931	23.0		1958	18.4		1985	11.7
1932	23.0		1959	17.8		1986	11.6
1933	25.2		1960	17.5		1987	11.5
1934	24.2		1961	17.1		1988	11.0
1935	23.4		1962	16.5		1989	10.9
1936	21.8		1963	16.0		1990	11.1
1937	21.5		1964	15.4		1991	11.2
1938	22.1		1965	15.1		1992	10.6
1939	21.3		1966	14.8		1993	10.8
1940	20.7		1967	14.1		1994	10.7
1941	19.4		1968	13.8		1995	10.6
1942	18.6		1969	13.7		1996	10.4
1943	18.6		1970	13.9		1997	10.4
1944	18.4		1971	13.4		1998	10.1
1945	19.2		1972	13.5		1999	10.2
1946	21.6		1973	13.3		2000	9.9
1947	23.5		1974	13.6		2001	9.9
1948	22.3		1975	13.8		2002	9.8
1949	22.1		1976	13.6		2003	9.8
1950	20.6		1977	13.4		2004	9.7
1951	20.9		1978	13.4		2005	9.8
1952	20.8		1979	13.4		2006	9.8
1953	19.9		1980	13.2		2007	9.8
1954	19.6		1981	13.0
1955	18.6		1982	12.6

Source: USDA/ERS: Food CPI, Prices and Expenditures: Food Expenditures by Families and Individuals as a Share of Disposable Personal Income.

Another question that often arises is: How do people in poor countries spend so little on food and survive? In part, they buy less food because they raise more of what they eat. In part, they eat less food per person. But much of the difference is in the type of food they buy. People in poor countries tend to eat out less, buy much less high cost foods such as meat, and buy much less prepared foods. Affluent people eat at restaurants. Poor people eat at home. Affluent people buy bread. Poor people buy flour.

_{Sources of Data}

_{Population by country: World Development Indicators database, World Bank, revised 24 April 2009.}

_{Per capita income by country: World Development Indicators database, World Bank, revised 24 April 2009.}

_{Food expenditures as share of total expenditures by country: World Bank, Euromonitor, 2008}

_{U.S. food expenditures by year: USDA/ERS: Food CPI, Prices and Expenditures: Food Expenditures by Families and Individuals as a Share of Disposable Personal Income.}