Home cooking surges as Americans face economic uncertainty

In the United States, consumer behavior around cooking at home has changed significantly due to rising economic concerns. Campbell's CEO Mick Beekhuizen announced that home-cooked meals have reached the highest levels since early 2020, a time when the nation faced the severe impacts of the COVID-19 pandemic. According to a poll by The Economist and YouGov in April, nearly half of respondents described the current state of the economy as poor, and a majority expressed that it was getting worse. This shift in sentiment is driving many households to prepare meals at home, as they seek ways to manage their budgets amid inflation and economic uncertainty. The trend toward home cooking is compounded by higher food prices, which have risen significantly in recent years. From 2020 to 2024, the all-food consumer price index increased by 23.6%, surpassing the overall consumer price index growth of 21.2%. Beekhuizen emphasized that consumers are more selective about food purchases, focusing on ingredients that stretch tighter budgets. He noted that this behavioral change has positively impacted Campbell’s business in the meals and beverages categories, particularly in sales of condensed cooking soups and sauces. However, the data also indicates a caution in discretionary spending on snacks, highlighting new challenges for the company's snacking categories. The evolving economic landscape, influenced by factors such as tariffs and inflation, continues to shape consumer spending habits. Nearly half of U.S. consumers surveyed cited rising prices as their top concern, while tariffs on imported goods were a close second at 29%. Such economic pressures are causing households to adjust their financial behaviors proactively. Although inflation has been a significant concern, the potential resurgence of higher food prices linked to President Donald Trump’s earlier tariff policies weighs heavily on consumers’ minds. As households adapt, it is clear that home cooking will likely remain a prominent trend. With consumer behavior shifting to prioritize cost-effective choices, companies like Campbell's must navigate these changes to maintain a competitive edge in a challenging market.