Everywhere you look, people are asking the same question:
Why are grocery prices so high?
And it’s not just a local issue. Whether you’re in New Zealand, Germany, the U.S., or South Africa, supermarket prices are climbing, and frustration is mounting.
Governments are stepping in. Reviews are underway. Supermarkets are being investigated. Some countries are even exploring the radical step of breaking up major grocery chains, hoping that more competition will force prices down.
But here’s the uncomfortable truth:
Even if we break up the supermarket giants, food prices may not fall.
Because the problem runs deeper than who owns the store.
A History of Convenience and Consolidation
Supermarkets weren’t always the dominant model. In fact, they only rose to prominence in the mid-20th century, offering one irresistible promise: everything you need under one roof.
Consumers loved the convenience. Prices were often lower, selection was wider, and parking was easier. Over time, supermarkets replaced the local butcher, baker, greengrocer, and fishmonger. Independent food retailers couldn’t compete.
But as supermarket chains grew, so did their power. Through mergers, acquisitions, and aggressive pricing, they consolidated market share. Today, many countries have just two or three supermarket giants controlling the majority of grocery retail.
And while we gained convenience, we lost food diversity, seasonal eating, and our connection to how and where our food is grown. The system became centralized, streamlined, and profitable—but also vulnerable.
The Illusion of Choice
In many countries, the grocery sector is controlled by just a few dominant players. That kind of market concentration absolutely limits competition. But it’s also true that new players often don’t make much of a dent—because they’re tapping into the same supply chains, the same food manufacturers, the same distribution bottlenecks.
It’s like repainting a Monopoly board and hoping the game plays differently.
Even with new competitors, the prices don’t shift much—because the entire system is still top-heavy and vulnerable.
Food Inflation: What the Data Says
Let’s look at the numbers. The FAO Food Price Index, which tracks international prices of commonly traded food commodities, soared over 30% above the previous decade’s average in 2022, driven by spikes in cereals and vegetable oils. Although prices have slightly eased since, they’re still well above pre-pandemic levels.
In the U.S., grocery prices rose 11.4% in 2022—the highest jump since 1979, according to the Bureau of Labor Statistics. In the UK, staple items like milk, bread, and cheese have seen double-digit increases. Emerging economies have been hit even harder, with food making up a larger portion of household spending.
And it’s not just inflation. It’s energy costs, weather disruptions, labor shortages, and war. The global food economy is being hit on all fronts, and prices are reflecting that stress.
Producers Are Squeezed from Both Sides
Let’s not forget the people who grow and produce our food.
In this system, they often:
- Sell for the lowest price or lose the deal entirely
- Face pressure to absorb cost increases without passing them on
- Get paid late, if at all
- Navigate impossible standards while profits trickle downward
Many small and medium producers are exiting the industry entirely. The result? Fewer producers, more consolidation, less bargaining power—further reinforcing the pricing power of those who remain.
Greedflation and the Profit Question
There’s also a growing body of evidence suggesting that some corporations are not just passing on costs—they’re padding their profits while blaming inflation.
This phenomenon, dubbed “greedflation,” is subtle but potent. It’s hard to prove, easy to hide, and wildly profitable. In some countries, watchdog groups have reported food company profits rising significantly while consumers are told it’s all due to inflation.
And when consumers have no real alternatives, they pay the price—literally.
So What Can We Do?
We can start by admitting this isn’t just about adding more players to the supermarket scene. It’s about rebuilding the foundations of a food system that’s been optimized for speed and profit, not sustainability or fairness.
Here are a few ideas:
- Localize food systems – support regional growers and shorten supply chains.
- Increase transparency – track who profits where along the chain.
- Rein in corporate consolidation – not just in retail, but across production and distribution.
- Support food cooperatives and alternative models – ones that prioritize affordability, nutrition, and community.
Because a food system that breaks at the first sign of stress isn’t a food system—it’s a house of cards.
Final Thoughts on Why Are Grocery Prices So High?
We all want lower prices. But what we really need is a better system—one that serves the many, not just the few.
That’s not just an economic issue.
It’s a Critical Mindshift.
What’s food costing you these days—and do you think the system is working?
The more we compare realities, the closer we get to understanding what really needs to change.
But here’s the quiet truth behind it all: in many ways, we’re participating in the very system we’re frustrated by. The modern supermarket offers undeniable convenience—but that convenience often comes at a price: not just in dollars, but in diversity, freshness, resilience, and fairness.
We still have choices, even if they’re more complicated. Shopping locally. Supporting nearby growers. Choosing farmers markets, cooperatives, and independent grocers. It might take more time. It might not save us money. But it does send a different signal about the kind of food system we want to be part of.
📚 Further Reading
If you’d like to explore these issues more deeply, the following resources provide valuable insights into the global food system, pricing trends, and the forces shaping your grocery bill:
FAO Food Price Index
https://www.fao.org/worldfoodsituation/foodpricesindex
Monthly global tracking of food commodity prices by the UN’s Food and Agriculture Organization. Includes historical spikes and current trends.
U.S. Bureau of Labor Statistics – Food Price Inflation Data
https://www.bls.gov/news.release/cpi.nr0.htm
Official data on U.S. consumer prices, including year-over-year grocery inflation and historical records..
The Guardian: Big firms accused of ‘greedflation’ after profit margins jump
https://guardian.pressreader.com/article/281925957239300
Explores the growing discourse on corporate profiteering during inflationary periods, with expert perspectives and case studies.
International Panel of Experts on Sustainable Food Systems (IPES-Food)
https://www.ipes-food.org/
→ Insightful reports and solutions-focused research on how to build resilient, equitable, and sustainable food systems globally.
Because sometimes asking better questions means digging a little deeper. or share your local experience. The more we compare realities, the closer we get to understanding what really needs to change.
Books:
The following selection of books talk about the complexities of global food prices, supermarket monopolies, and the broader food industry, providing valuable insights into the factors influencing food prices and the impact of market consolidation on the global food system.
Note: The following books are linked to Amazon.com for your convenience. If you decide to purchase through these links, we may earn a small commission — at no extra cost to you.
Barons: Money, Power, and the Corruption of America’s Food Industry [amazon.com]
By Austin Frerick (2023)
This book examines how major food industry players have consolidated power, leading to monopolistic practices that affect food prices and availability. Frerick provides a critical analysis of the political and economic maneuvers that have allowed these entities to dominate the market.
Global Food Value Chains and Competition Law [amazon.com]
Edited by Ioannis Lianos, Alexey Ivanov, and Dennis Davis (2022)
This comprehensive volume introduces a new framework for analyzing competition law and policy within the context of global food value chains. It explores the challenges of regulating competition in a rapidly evolving food economy, considering technological, economic, and ecological perspectives.
Shopped: The Shocking Power of British Supermarkets [amazon.com]
By Joanna Blythman (2004)
Although not as recent, this investigative work remains relevant as it critically examines how British supermarkets have transformed diets, economies, and landscapes. Blythman argues that consumers have inadvertently ceded control over their food choices to a few powerful chains, a theme that continues to resonate in discussions about food monopolies.
Image acknowledgement
We’re grateful to the talented photographers and designers on Unsplash for providing beautiful, free-to-use images. The image on this page is by David Palma. Check out their work here: https://unsplash.com/@reticular/illustrations.
