Household Budget Food Percentage: Understanding the Breakdown

When it comes to household budgeting, one of the largest expenses for many families is food. But just how much do households around the world spend on food, and does this percentage vary significantly depending on income level?

According to recent data, in the median country in a particular region, food accounts for 60 percent of the budget for households in the lowest quintile of the income distribution, compared to just 49 percent for those in the highest quintile. This means that poorer households spend a much larger proportion of their budget on food than wealthier ones.

However, housing costs still remain one of the biggest expenses for most households, accounting for around 30.7 percent of the total budget. Interestingly, this figure has actually decreased slightly since its peak in 2020, when it accounted for 18.1 percent of the budget.

In 2022, households have spent around 15.8 percent of their budget on food, drinks, and tobacco, which is a significant portion of their overall expenditure. This highlights just how important it is to prioritize budgeting and planning when it comes to household expenses.

The share of food expenditures in household budgets varies significantly across different countries and regions. For example, households in Benin, Mozambique, and Uganda have shares that are close to the regional median, while those in the European Union (EU) spent over 956 billion euros on food and non-alcoholic beverages in 2019.

In fact, the median share of food expenditures across all countries is around 55.8 percent, with proportions ranging from as low as 28.4 percent in Mauritius to as high as 73 percent in Burundi. Figure 1.18 provides a visual representation of the national share of food expenditures in household budgets across several countries in the region.

It's also worth noting that the impact of rising food prices can be particularly significant for poorer households, who may spend a larger proportion of their budget on food. This is because they are more likely to rely on staple foods and other basic necessities, which are often affected by price increases.

Overall, understanding the breakdown of household budgets and the percentage spent on food is crucial for effective financial planning and decision-making. By prioritizing budgeting and planning, households can ensure that they have enough money to cover all their expenses, including housing costs, food, and other essential items.

Household budget food percentage