WalletHub Report: States that spend the most (and least) on groceries

MIAMI — A new study by WalletHub shows that households in some states are feeling the strain more than others, with lower-income states allocating a significantly larger portion of their earnings to groceries. According to the U.S. Department of Agriculture, grocery prices have risen by over 25% since 2019, outpacing wage growth and making food less affordable for millions of Americans.

The study analyzed the prices of 26 common grocery items across all 50 states and compared them to median household incomes to determine where groceries consume the highest percentage of earnings. The findings highlight a stark disparity: while grocery prices are higher in some states, it’s the states with lower median incomes where residents are spending the largest share of their paychecks on food.

Key findings:

• Mississippi tops the list, with residents spending 2.64% of their median monthly income on groceries, the highest percentage in the nation. Despite having the ninth-lowest grocery prices, Mississippi’s median household income of $52,985—the lowest in the U.S.—makes groceries a significant financial burden.
• West Virginia and Arkansas follow closely, with residents spending 2.57% and 2.49% of their incomes on groceries, respectively. Both states also rank among the lowest in median household income.
• On the other end of the spectrum, New Jersey residents spend just 1.5% of their income on groceries, the lowest percentage nationwide. States with higher median incomes, such as Massachusetts and Maryland, also rank among the lowest in grocery spending as a share of income.

Why are some states hit harder?
WalletHub analyst Chip Lupo explains that the states where people spend the most on groceries aren’t necessarily those with the highest prices. Instead, the combination of low median incomes and moderate grocery costs forces residents to allocate a larger share of their earnings to food.

“While grocery prices have gone up tremendously in recent years, the states in which people spend the greatest percentage of their income on groceries actually aren’t those with the highest prices. Instead, the median incomes in these states are quite low, so even with reasonable grocery prices, residents end up shelling out a higher percentage of their earnings than people in states with more expensive products,” Lupo said.

As grocery prices continue to rise, budgeting and savvy shopping strategies are becoming essential for households nationwide. The burden is particularly heavy for residents in low-income states, underscoring the need for policies that address food affordability and income inequality.

States Spending the Most on Groceries:

1. Mississippi (2.64% of income)
2. West Virginia (2.57%)
3. Arkansas (2.49%)
4. Kentucky (2.41%)
5. Louisiana (2.39%)

States Spending the Least on Groceries:
46. Connecticut (1.62%)
47. New Hampshire (1.60%)
48. Massachusetts (1.54%)
49. Maryland (1.54%)
50. New Jersey (1.50%)

Tips for saving on groceries:
With grocery costs consuming a growing portion of household budgets, WalletHub offers six practical tips to help consumers save:

1. Budget carefully: Allocate a specific amount for groceries and stick to it.
2. Use the right credit card: Cards with cashback rewards for groceries can save up to 6% at checkout.
3. Take advantage of discounts: Use coupons, loyalty programs, and sales to reduce costs.
4. Buy store-brand items: Generic products are often just as good as name brands but cost significantly less.
5. Look for clearance items: Items nearing their sell-by date are often heavily discounted.
6. Buy in bulk: Warehouse stores offer lower prices for bulk purchases, ideal for large families.

For more details on the study, including a complete ranking of states and expert commentary, visit WalletHub’s website.