Patterns of food consumption have changed significantly over the last 50 years, with food declining as a share of personal consumption expenditures in the United States, from 18.8% in 1973 to 12.9% in 2023. The composition of food consumption has also shifted, with a decrease in home consumption (from 68.5% to 51%) and an increase in prepared meals and restaurant meals (from 31.5% to 49%). Consumer spending on food services reached $1.17 trillion in 2023, presenting an opportunity for state and local policymakers to generate additional tax revenue, as prepared food is often subject to sales tax, unlike food purchased for home consumption.
Source Tax Foundation
