For a number of reasons, alternatives to common grocery products like meat, milk, and eggs are notoriously more expensive than their animal counterparts. But, as the price of the product continues to rise, where can consumers find the cheapest vegetarian groceries? Financial services company CashNetUSA conducted a survey to find out.
Through a virtual Walmart tour that compares the cost of a typical 12-item food basket, the study analyzed the cost of both vegan (and vegetarian) and traditional groceries relative to national averages and local income levels.
What it uncovered was regional disparities in vegan grocery prices across the United States, shedding light on the most budget-friendly states for plant-based food shopping.
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According to the survey, Hawaii emerged as the most expensive state for vegetarian groceries. At the other end of the spectrum, New Mexico claims the title of the most affordable state for vegetarian groceries, with prices more than 5 percent below the national average.
What was the 12 item vegetarian basket? Although this study is intended to compare traditional with vegan groceries, some items included in the “vegan” basket include animal products such as Frosted Flakes (which are not vegan due to the vitamin D3 derived from lanolin) and Morningstar Griller’s Original Veggie Burger (which contains egg whites). .
CashNetUSA has successfully replaced dairy cheese with Follow Your Hearts vegan cheese; Milk with silk real soy milk; and eggs with great value garbanzos. Other items were staples such as white bread, fruit, oil and vegetables.
While not perfect, the study’s results shed light on how the prices of milk, meat and other animal-derived product alternatives differ across states.
Why Hawaii poses challenges for affordable groceries
In Hawaii, the study found that vegan grocery seekers faced a significant financial burden due to the high cost of living on the islands. At prices more than 25 percent above the national average, Hawaii ranks as the most expensive state for groceries, period. Logistical challenges of importing fresh produce and plant-based products contribute to inflation.
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Investment analyst Tim Doman, CEO of digital banking site Top Mobile Banks, explained that the differences in grocery prices between vegetarian and traditional items are influenced by a mix of factors, many of which are interconnected.
“Key factors include regional production capacity, distribution supply, consumer demand and government policy,” Doman told VegNews.
“For example, states with a favorable climate for plant-based food production may see lower prices for vegetarian items, while traditional grocery prices may be cheaper in areas with substantial animal husbandry,” he says.
In Hawaii, the study found that the cost difference between the two categories of groceries at Walmart, vegetarian versus conventional, was relatively consistent.
According to CashNetUSA, affording a 12-item basket of vegetarian groceries would require one to work over an hour and 47 minutes in Hawaii.
However, because of the difference in the minimum wage, it would take one hour and 58 minutes of work to afford the basket in Mississippi. Other states where residents find vegetarian groceries less affordable? South Carolina, West Virginia and South Dakota.
New Mexico: A haven for budget-friendly vegetarian groceries
Unlike Hawaii, New Mexico emerged as the most affordable state for vegetarian groceries, with prices 5 percent below the national average.
When comparing the prices of two grocery categories in New Mexico, the study found that vegan and vegetarian products were generally priced lower than their traditional counterparts.
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Despite having the cheapest vegan groceries in New Mexico, due to fluctuations in the statewide minimum wage, Massachusetts residents must work at least an hour and 10 minutes to afford a basket of vegan groceries.
Other most affordable states for this category of groceries? The study points to Washington, New York and New Jersey.
“Vegan versus traditional grocery price differences and the role of inflation in shaping this dynamic is an interesting, multifaceted issue,” Doman said. “It’s an intersection of geography, economics, policy and even cultural changes toward dietary preferences.”
“Uncovering this sheds light on the complexity of our food systems and how they reflect larger socioeconomic trends,” Doman said.
While Hawaii and New Mexico were standouts at both ends of the spectrum, CashnetUSA found that vegetarian basket prices remained relatively stable, not exceeding or falling below the national average by more than two percent across 36 states.
Inflation and vegetarian food
The CashNetUSA survey provided valuable insight into regional disparities and grocery affordability across the United States. It’s complicated to understand why grocery prices fluctuate, especially when comparing animal products to vegan groceries. For one, animal products like milk and meat are heavily subsidized by the government, meaning they’re cheaper than plant-based alternatives — which, despite being generally more expensive, hit a record $8 billion in sales in the U.S. last year.
Doman cites another reason why vegan items can drive up prices.
“One interesting thing I’ve noticed is that states with higher urban populations, where vegetarian diets are more prevalent, may see an increase in demand for vegan items, which may drive up prices due to pressure on the supply chain”.
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And this price disparity comes at a time when consumers are feeling price pressures. A survey conducted in March by review platform Pissed Consumer found that 94.5 percent of consumers said inflation is affecting their shopping habits while 84.2 percent said “shrinkage” — where items shrink in size or quality but stay the same in price — is affecting their wallets.
“Our review platform regularly receives consumer reports about rising grocery costs,” Michael Podolsky, CEO and co-founder of Pissed Consumers, told VegNews. “Most consumers are feeling the impact of increased prices on their shopping habits and our latest survey confirms this as 60.2 percent of respondents chose ‘grocery’ from the list of categories with the biggest price increase.”
“In inflationary settings, consumers should learn to be smart shoppers to soften the inflationary blow to their wallets,” Podolsky advises. “Consider buying in bulk and avoid impulse buying, as it is shopping’s worst enemy.”