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According to the September 2024 Consumer Food Insights Report (CFI), roughly two-thirds of consumers have utilized a food-ordering app for takeout, delivery, or both at least once. Additionally, over half have used an app for a delivery order. Of those who have used an app to order food, almost half report using it for delivery or takeout on a weekly basis.
The survey-based report from Purdue University’s Center for Food Demand Analysis and Sustainability (CFDAS) examines food spending, consumer satisfaction, values, support for agricultural and food policies, and trust in information sources. The survey involved 1,200 consumers across the US.
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Lead author of the report, Joseph Balagtas, a professor of agricultural economics at Purdue and director of CFDAS, stated, “The COVID-19 pandemic altered the economy in various ways, especially in the service economy.”
Earlier this year, the US Department of Agriculture (USDA) reported a fourfold increase in spending on food-ordering apps for deliveries from full-service restaurants between pre-pandemic months and 2022. This trend prompted the CFDAS team to collaborate with Valerie Kilders, assistant professor of agribusiness marketing at Purdue, to assess consumer usage of the apps.
When ordering food online, 68% of consumers use discounts or promo codes sometimes, often, or always.
Since food purchased away from home is typically more expensive than food prepared at home with groceries, many consumers look for cost-saving options when purchasing prepared meals. This is especially true for consumers with lower food budgets. Half of them frequently use discounts and promo codes when ordering food online.
The report categorizes per-person weekly food expenditure into thrifty (less than $50 a week), moderate ($50 to $85 a week), and liberal (more than $85 a week) spenders. Balagtas noted, “Consumers who spend the most on food tend to utilize discounts less frequently.”
The CFI survey also inquired about the additional fees associated with many food-ordering apps. These fees are often attributed to various operating expenses of the service.
On average, consumers tip between 10% and 19% for a food delivery order. While 15% tip less than 10% and 14% do not tip at all. There was little variance in tipping percentages based on per-person weekly food spending.
The sustainable food purchasing index remained consistent from the previous assessment in June 2024 of the CFI survey.
“Consumers continue to prioritize safe food that meets their tastes, budgets, and nutritional requirements,” said Elijah Bryant, a survey research analyst at CFDAS and co-author of the report. Fewer consumers currently prioritize buying foods with environmental and social sustainability in mind.
Since the inception of the CFI survey in January 2022, there has been a gradual increase in per-person weekly food expenditures. In January 2022, the average was around $72, but in the latest report, consumers reported an average of $83.
“Consumers are adjusting their budgets to accommodate higher food prices, which has resulted in increased costs for purchasing groceries,” Bryant stated.
Based on the USDA’s questionnaire for measuring food insecurity, the researchers estimate the national food insecurity rate to be 13%, with higher rates among households spending less than $50 per person per week on food.
“Income appears to be closely linked with food security, as many households with lower food budgets struggle with food insecurity,” Bryant explained. Around 29% of respondents rely on free food resources, such as food banks, to supplement their diets.
When it comes to dietary choices, 14% of thrifty food spenders follow a vegetarian or vegan diet compared to 6% of moderate and liberal spenders. Thrifty spenders are also more likely to grow their own food in a home or community garden.
“Overall behavior regarding food choices does not differ significantly among spending groups, but thrifty food spenders tend to opt for generic foods over brand-name products and choose plant-based proteins over animal proteins more frequently,” Bryant added.
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Emil Kovács graduated from the Journalism program at Eötvös Loránd University in Hungary. During his journalism studies, he focused on data journalism, investigative reporting, and multimedia storytelling. He gained experience by writing for the university’s student newspaper, where he gained attention for his articles on social issues. After graduation, Emil began working as a reporter at a European news agency, where he conducts in-depth analyses of international news and current events.
