Consumer spending offers a window into what Americans will value in the coming years. According to new projections, food will remain a top priority.
A consulting firm, LLC Attorney, recently shared insights on consumer behavior over the next five years. It’s no surprise that food tops the list.
Miranda Marquit, senior editor at the Wall Street Journal’s Buy Side, remarks, “We have to eat. Global issues like tariffs and supply chains affect what we find on our tables.”
Food spending is predicted to rise from $245 billion in 2026 to $389 billion by 2029. That’s over a 12% annual increase, fueled by the growing interest in home cooking and convenient meal options.
Marquit also questions how much we truly need subscription services for food deliveries. Understanding where our money goes can lead to better choices.
Interestingly, tobacco products are the second fastest-growing category. Spending on cigars, e-cigarettes, and vapes is expected to grow by around 12% yearly, reaching $61.5 billion by 2029. A study from the Cato Institute illustrates that even with tax hikes, many tobacco users keep buying these products. While cigarette use is on the decline, the demand for smokeless options keeps rising.
Household essentials, like paper goods and cleaning supplies, are also projected to see more than 10% annual growth.
Marquit notes the uncertainty many face in managing budgets. “It’s important to step back and evaluate what you can change in your spending habits,” she advises.
In today’s economic landscape, understanding these trends is crucial. It helps consumers align their spending to their needs while adapting to the realities of rising prices.
For more information on tobacco use trends, check out the Cato Institute’s research here.
