The percentage of an average American family’s
disposable personal income spent on groceries (food at home) has steadily declined over the decades, dropping from
11.0% in 1965 down to 4.8% in 2025.
Groceries vs. Total Food Budgets
Economists evaluate food budgets using data from the USDA Economic Research Service across two categories:
Food at Home (groceries bought at stores) and
Food Away From Home (restaurants, fast food, and schools).
The historical breakdown shows a clear shift in how families allocate their budgets:
YearGroceries Only (Food at Home)Dining Out (Food Away From Home)Total Food Budget Share
196511.0%3.5%14.5%
19857.9%4.2%12.1%
20055.6%4.2%9.8%
20254.8%4.9%9.7%