U.S. Households’ Demand for Convenience Foods Rises

A new U.S. Department of Agriculture report found that Americans increasingly turn to prepared foods.

August 03, 2016

WASHINGTON, D.C. – Americans have increased consumption of foods that save time in food preparation, a new report from the U.S. Department of Agriculture finds. The study found that demand for the six food groups, regardless of their level of convenience to the household, is largely determined by price and income-led changes in total food expenditures, although advertising played a role in demand for fast-food meals and snacks.

Using 1999-2010 data, foods were categorized into six groups based on the amount of time the food saved households in meal preparation or convenience. In ascending order of convenience, these foods include:

  1. Basic ingredients, which are minimally processed and usually composed of one commodity;
  2. Complex ingredients, which are processed ingredients and usually contain more than one farm commodity;
  3. Ready-to-cook (RTC) meals and snacks, requiring water and/or heat before consuming;
  4. Ready-to-eat (RTE) meals and snacks, requiring no preparation; 
  5. Meals and snacks purchased at fast-food restaurants; and
  6. Meals and snacks purchased at sit-down restaurants.

Products that offered a greater degree of convenience than basic and complex ingredients, like RTC and RTE meals and snacks, constituted 26% of the average household food budget between 1999 and 2010. The portion of the average household food budget spent on RTE meals and snacks began to climb in 2007 across all geographic regions, while the share of the budget spent on RTC meals and snacks was relatively constant.

The most convenient foods—purchased from fast-food and sit-down restaurants—constitute around half of the total food budget. Between 1999 and 2010, the average share of the food budget spent on fast-food meals and snacks grew from 24% to 27%, with decreases in this share beginning just before the most recent economic downturn, starting in 2007 across most geographic regions.

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