Americans are still spending, but the money is increasingly going toward essentials and a few categories people prioritize.
1. Groceries
Food remains one of the biggest household expenses. U.S. consumers spent about $2.51 trillion on food in 2025, with spending both at home and at restaurants increasing after adjusting for inflation.
2. Health and Beauty
Health and beauty spending is growing faster than many traditional household categories. NIQ reports that U.S. household spending in this category was up 8%, the strongest increase among major departments it tracked.
3. Pet Care
Pet owners are continuing to prioritize spending on their animals. NIQ found U.S. household spending on pet-care products increased 4%, even while consumers were becoming more cautious about other purchases.
4. Household Care
Cleaning products and other household essentials are another category holding up. NIQ reported a 3% increase in U.S. household spending on household-care products.
5. Transportation
Getting around remains a major expense. U.S. households spent an average of $13,318 on transportation in 2024, or 17% of total household spending.
6. Travel
Travel remains surprisingly resilient despite higher costs. KPMG found that 60% of surveyed Americans planned to travel during summer 2026, with many adjusting their trips rather than abandoning them altogether.
