Where Does the Money We Spend at the Grocery Store End up?

The farmers who grow and produce food items sold at grocery stores receive just a small percentage of the profits from grocery food sales, while most of the money that consumers pay ends up going towards the expenses that get the items from the farm to the store. This includes refrigeration, transportation, processing, and stocking costs, along with paying for the labor necessary to perform these processes.

It is estimated that 84 percent of the money we spend at the grocery store ends up being used to cover the costs of distribution, while the farmers themselves receive 16 cents of every dollar that is charged in stores for the food they grow.

More about food spending:

  • About 25% of the groceries purchased in the US are from Walmart, making the supercenter retail chain the largest grocery store in both the US and the world.

  • Americans spend an estimated $1.4 trillion US Dollars (USD) on food each year, according to 2013 figures from the United States Department of Agriculture (UDSA) Economic Research Service.

  • In 1960, Americans spent approximately 17.5% of their income on food, while in 2013, average food spending was calculated to be just under 10%.

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More Info: CNN

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