States That Spend the Most at the Grocery Store: Study
This holiday season, 80% of Americans will see their grocery bills increase, with 65% shopping more frequently during this time. This is according to Upgraded Points' latest research, which explores these holiday spending habits and the regional differences in grocery shopping, delving into such factors as grocery store density and budgeting to provide a comprehensive look at grocery shopping across the United States.
"Grocery spending is a part of every household budget, yet how much Americans spend and where they shop can vary dramatically, depending on their state and the time of year," said Keri Stooksbury, editor-in-chief at Upgraded Points. "Understanding how much of someone's income goes to groceries and what their access to grocery stores is like can provide valuable insights into people's everyday lives, particularly around the holiday season."
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To determine the parts of the country that spend the most on groceries and where grocery store access is highest, Upgraded Points’ study analyzed data from the census on grocery spending and density in every state, normalizing those data points against median income and population to allow for more accurate comparisons across states.
The study also surveyed more than 3,400 Americans to get insight into their typical grocery shopping habits and how much more they spend on groceries during the holiday season.
How Much Do Grocery Bills Increase During the Holidays?
These states see the largest spikes in grocery spending during the holiday season:
- Hawaii: 29.8%
- Montana: 28.3%
- Tennessee: 28.2%
- Virginia: 27.9%
- Texas: 27.7%
Upgraded Points mentions that Hawaii topping the list isn’t too surprising, given its higher cost of living and reliance on imported goods that can make seasonal splurges even pricier.
Meanwhile, Texas' sprawling size and culturally diverse holiday traditions likely contribute to its residents going all out at the grocery store.
States That Spend the Least of Their Income on Groceries
- New Hampshire: 10.7% of income
- Maryland: 11.2%
- New Jersey: 11.4%
- Massachusetts: 11.5%
- Utah: 11.8%
The study shows that higher-income states dominate this list, where groceries account for a smaller percentage of household income. They spend nearly half as much of their income as states on the higher end of the ranking. Utah stands out as the only Western state, which Upgraded Points says could be due to its comparatively lower grocery costs and larger average household sizes that benefit from economies of scale.
States That Spend the Most of Their Income on Groceries
- Mississippi: 21.1% of income
- West Virginia: 20.2%
- Louisiana: 19.9%
- New Mexico: 19.7%
- Alabama: 18.4%
The states topping this list tend to have lower median household incomes. According to Upgraded Points, regional trends suggest that Southern states, where incomes tend to be lower than national averages, feel the impact of grocery spending more sharply.
Overall, Upgraded Points reports that 88% of survey respondents say their grocery costs have risen over the past year, and 93% report higher bills over the past three years.
This is supported by the latest Consumer Price Index (CPI) data, which reveals yet another hike, on top of successive increases, in prices for food at home. According to the Bureau of Labor Statistics (BLS), grocery inflation inched up 0.5% in November, with four of the six indexes posting higher prices. The CPI for meats, poultry, fish and eggs went up 1.7% over the month, with eggs continuing their ongoing supply-related climb, experiencing a 8.2% increase.
States With the Fewest Grocery Stores (Per 10K Residents)
- Arizona: 1.1
- Nevada: 1.1
- Utah: 1.1
- New Mexico: 1.2
- Texas: 1.2
The Southwest dominates the lower extreme of this list, reflecting the region's sprawling suburbs and larger distances between population centers. According to Upgraded Points, states like Texas and Arizona, known for their expansive geographies, often consolidate grocery stores into larger chains serving wider areas. This lower density may force residents to drive farther for groceries, affecting convenience and potentially influencing spending habits.
States With the Most Grocery Stores (Per 10K Residents)
- New York: 4.3
- Vermont: 3.3
- Alaska: 2.9
- Maine: 2.6
- New Jersey: 2.6
The survey shows that New York has the highest grocery store density, at 4.3 stores per 10,000 residents, reflecting its urban centers like New York City, where accessibility to grocery stores is a necessity.
Based in Austin, Texas, Upgraded Points is a travel company that helps to demystify the complex world of travel and credit cards. Launched in 2016 by Alex Miller, Upgraded Points uses targeted research efforts and in-depth studies to help travelers maximize their travel, points and experiences.
