Food Prices and Thanksgiving | Deloitte Insights

Age demographics also matter, and Gen Z hosts seem to be particularly affected this year. In our study, they were the most likely to report concerns about cost (61%) and the most likely to reduce their guest lists (49%). Gen Zers’ predisposition may be due in part to an income effect, as younger people tend to earn less,⁶ but that may have something to do with more limited hosting experience. Hosting as a priority is less part of Gen Z traditions (10 percentage points lower than other generations), many of which are likely still being established in younger households.⁷

Some hosts may seek to control costs in other ways besides inviting fewer guests. Three in 10 respondents (30%) say they will serve or eat a less fancy meal this year with cheaper dishes. Those guests lucky enough to get an invitation are expected to help out, according to those surveyed. Four out of 10 say this year that it is more important than before that guests bring something to offset the cost of hosting.⁸ Almost half of the hosts (47%) plan to ask their guests directly to bring something.⁹ And in fact, 92% of guests plan to bring something. On average, they plan to spend just over $47 on their offer.¹⁰

More potluck-style gatherings can create a stronger sense of community for both hosts and guests, but some will be left out entirely this Thanksgiving. Almost one in 10 respondents (9%) already know that they do not attend a gathering. Of those, 40% say they’re not celebrating with others because of the higher food costs, 35% cite more general financial concerns, and 26% say they’re scheduled to work during the holiday.¹¹

Some retailers are tapping into concerns about holiday meals by offering specially discounted meal packages aimed at keeping the price below a certain limit, e.g. 5-7 USD per person.¹² It remains to be seen whether these types of rebates will extend into 2025 apartments, or how much food and beverage company suppliers will be asked to share in the rebate.

Either way, consumers will have to continue to struggle with the cost of food after Thanksgiving. Deloitte’s Food Thrift Index (FFI) tracks a basket of consumer trade-offs and economizing behaviors over time, with higher numbers indicating consumers are tightening their wallets.¹³ The latest data, derived from a survey of 2,000 respondents, reflects the following considerations made by surveyed consumers:¹⁴

• 29% bought mostly store brands
• 24% bought mostly cheap ingredients
• 24% mostly bought cheaper meat and cuts

The results also shed light on consumers’ other economizing behaviour:

• 35% saved by reducing food waste at home
• 25% only bought essentials
• 19% bought less than they wanted

There is a silver lining in the data. The FFI has just hit its lowest point since the index was launched just over two years ago, seven percentage points below the baseline, indicating that consumers are becoming less frugal with their spending and may be a sign of growing consumer confidence. If this trend continues, next Thanksgiving, more people may be around the table again to share the meal.