Why High Food Prices Will Make Public Groceries Inevitable
8 days ago
- #grocery industry
- #public policy
- #food inflation
- Food prices have increased by 25% since 2021, while food consumption volumes have dropped by over 5%.
- Over 47 million Americans are food insecure due to rising grocery prices.
- Grocery industry sales grew by $225 billion post-pandemic, driven entirely by price inflation.
- Top 10 grocery categories saw an average price increase of 60% since 2019, with a 1.3% decline in unit volume.
- Market consolidation is a major driver of price inflation, with six grocers controlling over 60% of national sales.
- Meat prices are up 30% since 2021, with consumption volumes down 8%, and four conglomerates control up to 85% of meat processing.
- Egg prices have surged by 130% since 2021, attributed to avian flu, low pullet supply, and record profits.
- Soft drink prices increased by 46% since 2021, with the top three companies controlling over 80% of sales.
- Kroger and Albertsons saw net income growth of 92% and 108% respectively between 2019 and 2024.
- Public-sector grocery stores are proposed as a solution, with examples like the U.S. military commissary system offering lower prices.
- Expanding SNAP benefits and enforcing antitrust laws like the Robinson-Patman Act are suggested to address affordability.