Are consumers spending more on eating out vs groceries for staying in? The answer holds implications for the dairy industry, as consumers generally consume more dairy eating out than when cooking at home. And with margins as tight as they are and milk production seemingly staying in a narrow range with little change, all eyes are on demand for any significant shifts to come in the dairy market.

Consumer expenditures on food have climbed from around 40% away from home to an even 50% split beginning in around 2017. While the pandemic significantly changed that amount, 2022 saw the return of a fair split. But both sides of the ticket are feeling economic strain. Inflation is pushing grocery costs higher while soaring labor costs and supply chain concerns squeeze restaurants. Ultimately, USDA predicts overall food prices to climb 2.1%, with food at home to rise by only 1% and food away from home to jump 4.4%.

See how that could impact the dairy industry here.