What Percentage of Income Do the World’s Poorest Spend on Food?

In household budgeting, food is a primary requirement, yet its affordability varies dramatically across different income strata worldwide. For the world’s most vulnerable populations, securing adequate nutrition often consumes a disproportionately large share of their limited financial resources. This reality underscores the significant economic pressure experienced by those living in poverty, highlighting a constant struggle to meet basic sustenance requirements.

The Share of Income Spent on Food

The world’s poorest populations dedicate a notably high proportion of income to food. Globally, individuals in the lowest income brackets often spend between 40 to over 50 percent of their earnings on food, with some estimates reaching 80 percent for the very poorest households. In low-income African and South Asian countries, food expenditures accounted for over 40 percent of total consumer spending in 2022, exceeding 50 percent in nations like Nigeria, Kenya, Burma, and Bangladesh. This means nearly half or more of their available funds are committed solely to meals.

Understanding the Drivers of High Food Spending

Several factors contribute to the high percentage of income the world’s poorest allocate to food. Low and unstable incomes are a primary driver, leaving little financial flexibility. Even modest food prices consume a large budget share when earnings are minimal. High food prices, especially for staple goods, disproportionately affect these populations, compounded by supply chain inefficiencies that increase transport costs.

Economic shocks like inflation and currency devaluations also make food less affordable. For example, a 10 percent increase in food prices in low-income countries can correlate with a 3.5 percent rise in moderate or severe food insecurity. Climate events, such as droughts or floods, disrupt agricultural production, leading to reduced yields and higher food prices. These pressures mean small fluctuations in food costs can profoundly impact low-income households’ financial stability.

What High Food Spending Means for Daily Life

Committing a large income percentage to food fundamentally shapes the daily lives of the world’s poorest, leaving minimal financial capacity for other necessities. Households must make difficult trade-offs, prioritizing food over basic needs like housing, healthcare, education, or transportation. For example, some families might brush their teeth without toothpaste or delay changing a baby’s diaper to conserve funds.

This struggle extends to dietary quality, as families often opt for cheaper, less nutritious foods to maximize caloric intake within their limited budget, which can lead to long-term health issues. The chronic financial strain also contributes to increased stress and anxiety within households. The inability to consistently cover essential non-food expenses creates a persistent state of financial precarity, where unexpected costs can easily lead to deeper hardship.

Global Disparities in Food Expenditure

Food expenditure patterns reveal a substantial global disparity based on income levels. In higher-income economies like the United States, consumers spend a much smaller percentage of their disposable income on food. For instance, U.S. consumers spent an average of 10.6 percent of their disposable personal incomes on food in 2024. Households in the highest income quintile in the U.S. spent an average of 8.1 percent of their after-tax income on food in 2023. This contrasts sharply with the over 40 to 50 percent observed in many low-income countries.

This phenomenon, known as Engel’s Law, illustrates that as incomes rise, the proportion of total income allocated to food tends to decrease, even if the absolute amount spent on food increases. For wealthier populations, food costs are a small fraction of their budget, allowing for greater discretionary spending. Conversely, for the world’s poorest, food remains a dominant budget item, highlighting the unique economic burden and lack of financial flexibility they face.