Grocery prices in the US have risen nearly 25% in the past five years. Which states have the highest and lowest grocery costs? Learn how regional income levels impact grocery spending and get expert tips to save money on food shopping.
Summary
- Grocery prices have increased by nearly 25% over five years due to inflation and supply chain issues.
- States with lower median incomes spend a higher percentage of earnings on groceries.
- Mississippi, West Virginia, and Arkansas rank as the states with the highest grocery burden.
- New Jersey, Maryland, and Massachusetts have the lowest grocery cost burden due to high average incomes.
- Food price inflation varies by region, influenced by labor costs, transportation, and demand.
- Get expert tips to save money on grocery shopping and manage rising food prices.
Grocery Costs on the Rise Across the US
Grocery prices have been climbing steadily, with costs increasing by nearly 25% over the last five years, according to the USDA. While inflation has moderated in some areas, many consumers still feel the pinch when shopping for essentials.
A recent WalletHub study analyzed the cost of 26 common grocery items across all 50 states and compared those costs to median household incomes. The findings reveal stark differences in grocery affordability across the country.
States Where Consumers Spend the Most on Groceries
WalletHub’s analysis highlights the top 10 states where residents spend the highest percentage of their income on groceries:
| State | Percentage of Income Spent on Groceries |
|---|---|
| Mississippi | 2.64% |
| West Virginia | 2.57% |
| Arkansas | 2.49% |
| Kentucky | 2.14% |
| Louisiana | 2.39% |
| New Mexico | 2.36% |
| Alabama | 2.34% |
| South Carolina | 2.27% |
| Tennessee | 2.23% |
| Oklahoma | 2.21% |
These states tend to have lower median household incomes, making grocery costs a larger proportion of residents’ spending.
Example: In Mississippi, the median annual household income is just under $53,000, significantly lower than the national average of $74,600. As a result, even moderate grocery costs take up a substantial portion of household budgets.
States with the Lowest Grocery Cost Burden
In contrast, these states have the lowest percentage of income spent on groceries:
| State | Percentage of Income Spent on Groceries |
| Hawaii | 1.68% |
| Colorado | 1.67% |
| Virginia | 1.66% |
| Minnesota | 1.66% |
| Utah | 1.63% |
| Connecticut | 1.62% |
| New Hampshire | 1.60% |
| Massachusetts | 1.54% |
| Maryland | 1.54% |
| New Jersey | 1.50% |
These states generally have higher median incomes, making groceries a smaller percentage of household budgets. New Jersey, for instance, has an average household income of $118,000, making grocery costs far more manageable.
Why Grocery Prices Vary Across the US
David Ortega, a food economist at Michigan State University, explains that several factors influence grocery costs, including:
- Retail operating expenses – Higher labor and rent costs drive up grocery prices in urban areas.
- Consumer shopping habits – Demand for premium or organic food impacts pricing.
- Transportation costs – States farther from food production hubs face increased costs due to logistics and supply chain challenges.
- Regional inflation rates – Some regions experience more aggressive price hikes due to economic factors.
Will Grocery Prices Keep Rising?
While food price inflation has slowed compared to the past two years, prices remain high due to ongoing factors such as:
- The Bird Flu Epidemic – Egg and poultry prices surged 15.2% in January 2025 following widespread bird flu outbreaks.
- Extreme Weather Events – Droughts, floods, and supply chain disruptions impact food production.
- Government Policies – Tariffs and labor shortages under the Trump administration could push prices higher.
How to Save Money on Groceries
Ortega shares smart strategies to cut grocery costs:
🔹 Plan ahead and make a list – Avoid impulse purchases by planning meals in advance.
🔹 Choose store brands – Generic brands offer similar quality at lower prices.
🔹 Look for deals and sales – Take advantage of weekly discounts.
🔹 Buy in bulk (strategically) – Some bulk purchases save money, but avoid perishables that may spoil.
🔹 Shop on a full stomach – Grocery shopping while hungry often leads to unnecessary spending.
Final Thoughts
Grocery costs vary widely across the US, with lower-income states spending a larger share of earnings on food. While inflation has stabilized, prices remain high due to economic uncertainty and supply chain disruptions.
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FAQ
1. Which state has the highest grocery costs?
Mississippi ranks highest, with 2.64% of income spent on groceries due to lower median incomes.
2. Which state has the lowest grocery cost burden?
New Jersey residents spend the lowest percentage of their income on groceries, at 1.50%.
3. Why do food prices vary by state?
Retail costs, transportation expenses, regional demand, and supply chain factors impact grocery prices across states.
4. Are grocery prices expected to drop in 2025?
While inflation has slowed, supply chain issues and labor costs may keep prices high.
5. What are the best ways to save money on groceries?
Planning ahead, shopping store brands, and looking for deals can significantly reduce grocery spending.
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