The United States is one of the biggest consumer goods markets in the world. From apparel to food, perfumes to electronics, there are consumer goods for every segment imaginable. This wide accessibility to consumer goods has attracted many buyers. Americans don’t leave an opportunity to spend on items that can improve their lives, entertain them, make them healthy, or make them feel good.
Let’s explore the top consumer goods Americans spend the most money on.
Food
Americans’ love affair with food is over the top, and their recent spending habits confirm this. A recent USDA study highlights how Americans are spending approximately 11.2% of their disposable income on food. This percentage includes food ordered from restaurants and food purchased from grocery markets. A quick look at an average American’s grocery spending list shows that most of their money is spent on dairy goods, fresh produce, and snack items.
Alcohol
It is probably the most loved beverage of most Americans. Whether you attend corporate events or family gatherings, friends’ outings or casual weekend hangouts, alcohol will always be involved. While Americans spent an average of $583 on alcohol in 2022, there was a 1.1% increase in the following year’s spending. In 2023, the total retail spending on alcoholic beverages reached a whopping $89.8 billion mark. Vodka sold the most in 2023, followed by Tequila and Mezcal.
Personal Care Products
Americans pay special attention to their appearance and don’t hesitate to spend top dollar on products that offer tangible value. A 2022 study revealed that Americans spend approximately $722 every year on their appearance. If you break down their beauty spend, you’ll notice they spend the most money on hair products, skincare, shaving items, lotions, etc. Supplements like protein powders, makeup, hair color, gym membership, and hair removal items are also a part of their steady investment.
Clothing
The clothing industry is constantly evolving, yet the only constant in this sector is a steady demand from adults and kids alike. Americans like spending on items that make them look presentable, stylish, and good, so clothes are naturally one of their biggest purchases every year. Every U.S. household spends approximately $1,500 on clothing every year, with women taking the lead with 40% more spending than men.
Entertainment & Leisure
Many Americans use the internet and subscription-based streaming services like Hulu, Netflix, and Disney+ for entertainment. While the internet is getting expensive day-by-day, Americans aren’t hesitant to spend money on it. They believe such services are a need and not a want, making them one of the most purchased consumer goods. A survey revealed that an American pays an average of $3,390 every year for internet, mobile, and TV/streaming services, taking up a significant portion of their yearly spending.
Household Cleaning Products
Americans are very particular about hygiene and won’t settle for anything less than a clean home environment. It is why they spend generously on household cleaning products like floor cleaners, sprays, wipes, etc. This demand is reflected in the region’s growing household cleaning industry, which is constantly growing year after year. A Precedence Research report highlights that the U.S. household cleaning products market grew from $47.75 billion in 2022 to $49.67 billion in 2023 and will continue growing because of the fast-increasing demand.
Furniture
A recently published global home improvement spending study revealed that the United States ranks second, only to China, in terms of spending the highest amount on furniture and home décor items. It revealed how much Americans love spending on the upkeep and aesthetic appeal of their residential properties. The study highlighted that most Americans preferred spending more on their living room and bedroom furniture.
Gardening Supplies
Gardening is one of the most popular hobbies in America, with over 185 million households enjoying its benefits. While Americans loved gardening before, many took up this hobby during the pandemic to spend their time more productively. People spend an average of $70 every year to nurture their gardening hobby and establish a close connection with nature. Some of the most popular gardening supplies among Americans include hydroponic kits, seeds, bulbs, live plants, shovels, weed trimmers, lawn mowers, etc.
Home Improvement Products
There has been a sudden surge in interest in home improvement and renovation throughout America. People now spend a massive portion of their income to personalize their houses and improve their aesthetic appeal, functionality, and feel. A JCHS study revealed that the American home improvement market saw a massive rise in spending from $328 billion in 2019 to approximately $472 billion in 2022. Predictions show a further increase in the coming years.
Pet Food
More than half of the entire American population has pets as their most loved companion. While these goofy and furry companions are adorable, keeping up with their expenses isn’t easy. People with dogs generally spend $339 every year on their food, while those with cats spend approximately $310 every year on cat food. These are average food prices that can rise astronomically for specific breeds. However, trends show that Americans happily spend on their pets’ food for their well-being.
Sporting Goods
Sports are a big part of American culture, so people spend much of their income on sporting goods. According to a Persistence Market Research report, Americans spend an average of $600 every year on sporting goods. While a significant chunk of the U.S. population has an active interest in sporting activities, the demand for sporting goods is mostly fuelled by millennials and Gen Z. Basketball equipment is the most purchased sporting goods in America.
Toys
Americans believe in living in their life to the fullest, and they extend the same philosophy to their kids. This is why Americans spend lavishly on pampering their kids with the latest toys. If you check the annual U.S. sales data for toys, you’ll notice the toy market grew 26% in 2023 and reached the $41 billion market size. They mostly spent on buying building sets, action figures, dolls, explorative toys, etc.
