How to save money on food shopping in the US

Food and non-alcoholic drink typically account for 12-16% of US household expenditure — making it the second or third largest cost for most families. Unlike rent or mortgage payments, food spending is highly flexible. Meaningful reductions are possible without significant sacrifice.

The habits that make the biggest difference

• Meal planning: deciding what you will eat before you shop eliminates impulse buying and food waste
• Shopping with a list: browsing without a list costs an estimated 30-40% more
• Using store loyalty apps: activate Kroger, Safeway for U or Target Circle offers before you shop, not after
• Checking markdown sections: most grocery stores discount meat, bakery and produce approaching their date, often in the morning or late evening

Switching and substituting

Most national brands have a store-brand equivalent at a significantly lower price with similar ingredients. Switching even a few regular items — pasta, canned tomatoes, cereal, dairy — can save $30-$60 per month on a typical family grocery trip.

Discount grocers such as Aldi, Lidl and WinCo, and warehouse clubs such as Costco and Sam's Club, generally price staples well below conventional supermarkets. A household moving its main grocery trip to a discount store can save a meaningful amount each month, though warehouse clubs charge an annual membership fee that needs to be weighed against the savings.

Reducing food waste

The USDA and EPA estimate that a large share of the US food supply is wasted, and the value of food thrown away by the average household runs into the hundreds of dollars each year. Reducing waste is one of the highest-return money-saving actions available. Store food correctly so it lasts longer, use a first-in-first-out system in the fridge, plan meals around what needs using, and batch-cook to repurpose across multiple meals.

A worked example: family of four

Current spend: $600 per month. Moving the main grocery trip to a discount grocer (-$100), activating store loyalty app offers (-$30), reducing food waste by planning meals (-$40), switching five national-brand items to store brand (-$20). Total: $190 per month saving, $2,280 per year.