UK Food Spending Hits Record High as Families Cut Back on Eating Out
UK households spent a record £4,120 per year on food and non-alcoholic drinks in 2025-2026, according to ONS data released in May 2026. The increase is driven by higher prices for bread, dairy, meat and vegetables, as inflation in the food category hit 4.2% in April.
With grocery bills rising faster than wages, families are changing habits. Eating out fell 6.3% year-on-year, while sales of own-brand products at supermarkets rose 8.1%. The shift is reshaping the UK food retail sector.
What’s Driving Higher Food Costs
Energy and transport costs remain the main drivers. Fuel surcharges have pushed up delivery and distribution expenses for supermarkets and food manufacturers. The Middle East conflict has also increased costs for imported goods like cooking oil, coffee and packaged foods.
UK farmers report higher costs for fertiliser and animal feed. That has fed into higher prices for milk, eggs and poultry. Fresh vegetables also rose due to poor harvests in Spain and Morocco