The U.S. grocery market is exhibiting stark regional disparities, with urban centers in the Midwest and South bearing the brunt of rising food prices. A recent WalletHub report reveals that residents in Detroit and Birmingham, Alabama, allocate over 3.8% of their income to groceries, a figure that exceeds four times the percentage spent in high-income cities such as Fremont, California, where grocery bills account for less than 1% of household budgets.
The disparity has created a growing financial divide, with families in lower-income areas facing significant pressure from food costs that have risen nearly 30% since the onset of the pandemic. According to the report, cities like Cleveland and Toledo, Ohio, also rank among those where residents spend the highest proportion of their earnings on food. In contrast, affluent areas such as San Francisco and San Jose, California, have higher incomes that allow their residents to more easily absorb price increases, as highlighted by the analysis.
Chip Lupo, a WalletHub analyst, described the situation as particularly challenging for residents in cities with both high grocery prices and stagnant wages. “In the cities where people spend the most money on groceries, residents often have low incomes on top of seeing high sticker prices on common grocery items,” he said. This dynamic has fueled a surge in demand for inexpensive meal options, with the report noting a notable increase in the sales of budget-friendly products like Hamburger Helper, which has become a popular choice for households tightening their budgets.
The analysis, based on data from 26 common grocery items, including meat, dairy, vegetables, and cleaning products, shows that grocery prices have been driven primarily by the cost of meat and dairy, which vary significantly by region. Produce prices, while subject to seasonal fluctuations, tend to remain more stable. In cities with higher income levels, the ability to offset increased food costs is more pronounced, as seen in the case of coastal cities like San Francisco and Washington, D.C.
Experts recommend a range of cost-saving strategies, including meal planning, buying store-brand products, and using loyalty programs. Professor Andrew Burnstine of Lynn University in Florida emphasized the importance of creating a grocery budget and sticking to a shopping list. Similarly, Jeff Shockley, a professor at Virginia Commonwealth University, suggested that shoppers can reduce expenses by taking advantage of warehouse club discounts and avoiding impulsive purchases.
Additionally, Dana DiPrima of the For Farmers Movement recommended shopping seasonally and buying local produce, as well as utilizing every part of the food, such as beet greens and carrot tops. “At this time of year, you can also stock up on staples that store well, like potatoes and onions,” she noted, underscoring the role of sustainable and frugal consumption in managing rising costs.