Why are groceries expensive? Plus, how your family can save money

Have you gone grocery shopping lately only to experience sticker shock at checkout? You are not alone! Food prices have gone up a lot lately, and families everywhere are feeling the impact of it. So, why are groceries so expensive right now, and what can your family do to bring down your grocery bill? Let’s take a look.

5 reasons groceries are so expensive in 2025

Well, there’s no denying it — groceries are expensive right now, and it doesn’t look like it will be slowing down anytime soon. In fact, according to the USDA, grocery prices are expected to increase by 3.3% in 2025. But, why is this happening? Here are five of the culprits causing your grocery bill to skyrocket. 

Be a financially smart family!

Be a financially smart family!

From saving for the future to understanding credit, see how families are thriving with Greenlight.

Try Greenlight today

1. Higher fuel costs

Food has to do some traveling before it inevitably lands on a supermarket shelf. The food we eat travels from farms to stores, and sometimes from farms to processing plants to warehouses to stores. So when gas prices go up, we often see grocery prices go up. 

Learn more about the best ways to save money on gas and how to lower your fuel costs.

2. Extreme weather

Many types of weather events (droughts, floods, and storms) can damage crops, which leads to food product shortages. When this happens, the cost of these products increases. For example, hurricanes in Florida can damage citrus farms, which creates a shortage of oranges, causing orange juice prices to spike.

3. Global supply chain issues

Now, let’s go back to how much our food travels, this time as part of the supply chain. This is when things like trade policies, tariffs, and shipping delays can make groceries even more expensive. For example, new tariffs on Mexican produce make everyday favorites like avocados and tomatoes more expensive at the store. Plus, farmers have to pay more for chicken feed, fertilizers, and equipment, which raises the cost of dairy, meat, and eggs.

4. Bird flu outbreaks

Speaking of eggs, have you noticed how expensive eggs are lately? This is due in large part to the bird flu outbreak that has resulted in millions of hens being removed from production in an attempt to stop the spread of the disease. This caused the egg supply to drop and prices to soar.

5. Grocery store markups

Markups happen when stores keep prices high, even when their costs go down. This causes the groceries and other products you use every day to be more expensive than they should be. Sometimes this is called "greedflation,” which basically means that a business is raising prices more than they need to, just to boost profits.

10 ways to save money on groceries

Now that you know why groceries are so expensive these days, it’s time to come up with a plan to cut those costs as much as you can. The 10 ideas below will help you protect your budget, and even find a few ways to involve your kids in the process.

1. Watch for sales. Before you head out to the grocery store, check the weekly ad to see what’s on sale, then plan your grocery list around it. Get your kids involved by letting them check for sales and then suggest meal ideas!

2. Buy in bulk when it makes sense. Bigger packages of the items you use regularly can be cheaper per ounce, making bulk purchases more affordable overall. But this only works if you actually use everything that you're buying!

3. Know what days to shop. Many grocery stores restock their shelves and run deals on certain days of the week. Check when that happens at your favorite store so you can take advantage of discounts.

4. Buy produce in season. Fruits and veggies are always the cheapest (and freshest!) when they’re in season. Plus, if you live in an area where that produce is grown, you may find even better deals at local farmers markets. 

5. Freeze extra food. If you have the freezer space, take advantage of it! There are so many foods that can be frozen and used later, including bread, cheese, meat, and even milk. 

6. Get creative with leftovers. Plan a leftover night once a week that mixes and matches a few of the other meals you’ve already served. For example, turn leftover taco meat into stuffed peppers or even soup! And don’t forget that you can freeze leftovers, too, to create a ready-to-go meal for another night.  

7. Give the store brand a try. Families can save 25 to 30% on their grocery bill by choosing store brands in place of name brands. Let your kids choose a product to compare and do a blind taste test to see if they can tell the difference! 

8. Shop the perimeter. The outer aisles of a supermarket often contain less expensive and unprocessed foods. So you can save — and eat healthier — by buying most of your groceries in these aisles.

9. Plan in advance. Grocery bills often go up when you’re not shopping with a list. Have everyone in the family contribute to a grocery store list, and then plan meals for the week ahead so you know exactly what you need before you get to the store.

10. Use coupons, apps, and reward programs. Coupons come in many forms and can save you money at checkout. And don’t forget about grocery store apps and reward programs that give you access to additional deals. 

Just because grocery prices are rising doesn’t mean your budget has to take a hit. Next time you’re planning your groceries for the week, try a few of these tips and see how much money you can save!

Teach smart budgeting early. Set spending controls and savings goals, and teach kids how to manage money with Greenlight. Try Greenlight, one month, risk-free.†

†Valid for new customers only. Subject to identity verification and minimum load requirements. Your first monthly fee will be billed to your parent wallet seven days after successful registration. To receive a refund of your first monthly fee, you must request to close your account on or before the day immediately preceding your first Monthly Billing Date. See the ‘Account’ tab of Settings by tapping the gear icon on the Greenlight app home page to confirm when your risk-free trial ends. See Terms for details.