Prevention - Income And Grocery Purchases

The type of groceries we buy is influenced by our income, among other things. The graphic shows items that get above- and below-average spending in low-income cities compared to the national average.¹⁴ Asterisks indicate items that show up as high priorities here but show up as low priorities for high-income cities (see table) — and vice versa.

Percent Variance from the National Average for Expenditures on Grocery Products in High-Income Cities

Above-average expenditures		Below-average expenditures
Seltzers/club soda*	197	Solid shortening*	48
Misc. refrig. juices*	171	Canned meat stew	56
Bottled water	171	Canned pie filling*	56
Refrig. orange juice	160	Refrig. biscuits*	57
Refrig. drinks	155	Spoonable salad dressing	60
Frozen green beans*	154	Cornmeal*	61
Dried rice	152	Canned green beans	68
Refrig. yogurt*	147	Dry toaster items	68
Butter	147	Refrig. pastries	69
Refrig. salad dressing*	142	Canned poultry	69

For example, the table shows that in high- income cities¹⁵ like New York, the average household spent 48% below the national average on solid shortening, while we see from the graphic that low-income cities spent 192% above the national average. On the other hand, low-income cities spent 52% below the national average on yogurt, while high-income cities spent 147% above the national average. What can we infer from this chart and table?

Jekanowski and Binkley found "that grocery categories that are relatively important in high-income areas tend to be relatively unimportant in low-income markets, and vice- versa." They concluded that in high-income areas, more money is spent on high-value, discretionary items like seltzers, juices, and bottled water, while people in low-income areas spent more money on staples that require further preparation at home. They also concluded that higher expenditures on flour, cornmeal, shortening, and condensed milk suggested more cooking and baking "from scratch."

High-income consumers favor items associated with current thinking on what constitutes a health-conscious lifestyle: bottled water and juices and yogurt, for example. The refrigerated salad dressing must be intended for their healthy salads. High-income consumers favor frozen vegetables, which are generally considered better-tasting, but canned vegetables, the choice of low-income consumers, tended to be less expensive. Will that calorie-laden butter on the high-income list flavor those frozen green beans? If so, it is the rare fatty indulgence of the high-income consumer, from whose kitchen it appears the art of baking has disappeared.

Purchases in low-income cities tend to be higher in calories (canned sausage and lunch- meat). The charted data were collected in 1990. Given a few more years of media bombardment about good nutrition, would spending habits change?

The USDA collected data on average annual per-person expenditures on various food items by income quintile. In 1997-98, dissimilarities are still seen between the lowest and highest income groups. The lowest group was less favorably disposed to cereal and bakery products, except for flour ($3.27 versus $3.16). Not surprisingly, the highest-income group spent more on meats, poultry, fish, and eggs, with the highest dollars going to red meat ($177.85 versus $193.73). Pork was second ($60.15 versus $61.57), followed by the healthier poultry ($56.56 versus $64.80) and fish ($33.78 versus $46.40).

The lowest-income people spent less on dairy products ($112.07 versus $149.15) and fruits and vegetables ($180.15 versus $223.15). Recall that the USDA has identified too little milk and fruit as our greatest nutritional failings. (See Chapter 1 in this volume for a further discussion of how our diet affects our health.)

Good nutrition may be hampered by income, but other factors are involved. Lack of knowledge is a problem. Studies suggest that low-income people are less likely to read nutrition labels. Many of us dine out more (and less nutritiously; see Chapter 4 for more on this). Next we will look at the growing interest in organic foods.

Sources: Jekanowski, Mark D. and James K. Binkley. "Food Spending Varies Across the United States." Food Review (January-April
2000), p. 38; Selling Area Marketing Incorporated (SAMI), 1990. "Food Resource Management Practices and Needs of Low-Income Households: A Summary of Research." (April 2002). Online. Available: http://www.uwex.edu/ces/wnep/p4/pdfs/03rsmgmt.pdf. June 7, 2002. Noel Blisard. Food Spending in American Households, 1997-98 /SB-972. Economic Research Service/USDA. Online. Available: http://www.ers.usda.gov/publications/sb972/sb972a.pdf. June 7, 2002.