The average price of Thanksgiving dinner has become more affordable this year compared to last year. The cost of a Thanksgiving meal has come down to $5.80 per person from more than $6 in 2023 according to the survey by American Farm Bureau Federation. Here in this article, we will discuss the different reasons behind the reduction in the price of The Thanksgiving meal this year. We will also discuss the retailer competition in the American market, the decrease in demand for turkey, and the average cost of various ingredients in the Thanksgiving meal.
For a dinner which includes a 16-pound turkey that can be consumed by 10 people will cost only $58.08 this year which is 5 % less than the cost of a meal last year. In 2023 the Thanksgiving meal cost around $61.17. In 2022 the Thanksgiving dinner for 10 people cost around $64.05.So, in 2023 the Thanksgiving meal was cheaper by 4.5%compared to 2022.
Turkey is the main part of the Thanksgiving dinner. The decline in demand for Turkey has significantly reduced the average price of the Thanksgiving meal. Brent Nelson who is an economist in the American Farm Bureau stated that the reduced price of Turkey resulted in the average price decrease in the Thanksgiving meal.
Except during the years 2022 and 2023, the price of Thanksgiving dinner has been below 5 dollars since 1986 according to the data from the American Farm Bureau Federation. The increase in prices in the years 2022 and 2023 was due to inflation. Although there is a decrease in this year’s Thanksgiving dinner price the average cost is still higher than in 2021. The average cost of Thanksgiving dinner in 2021 was $5.33.
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Retailer Competition in Thanksgiving Dinner
Grocery Chains in America are competing over the Thanksgiving meal deals and discounts. Kroger has announced that their Thanksgiving dinner will cost less than $4.85 per person. Aldi has announced that their meal will only cost $4.70 per person in the Thanksgiving dinner. Amazon Fresh and Target also said that the Thanksgiving meal will cost less than $5 per person.
The average food price was $7.63 in 2023 according to Circana in fast food restaurants. The meal for an average person in a restaurant will cost around $16.53 per person in a casual restaurant. Food has generally become more expensive due to inflation but Thanksgiving dinner cost has become more affordable this year.
The cost of the Thanksgiving dinner is one of the topmost concerns of an average person hosting the dinner. Some of the respondents of the Circana survey have stated that they expect to pay more for grocery purchases to host Thanksgiving dinner but they will only purchase for the same amount that they did for the last year.
As per Deollite’s survey details, some people are reducing the number of guests this year as a method to reduce their costs. Many people have said that they will narrow down the guest list this year to cut down their expenses. The number of guests in the Thanksgiving party would be 10 and the expected cost to host the dinner party would be $260.
Decrease in demand for Turkey
Although the average cost of the Thanksgiving dinner has been reduced significantly the price of other grocery items such as fresh cranberries and whipping cream have increased compared to last year 2023. The price of Turkey is lower than last year which contributed to the reduction in Thanksgiving dinner price.
The price of turkey is almost 6 percent cheaper than last year. Turkey is the main course for the traditional Thanksgiving meal in America. Since turkey contributes to the major part of the meal it is the most expensive item in the Thanksgiving meal.
One reason for the price decrease in Thanksgiving meals is that people are no longer interested in turkey. There is more turkey in the cold storage, most probably not from this year’s flock. Bird flu has also affected the turkey flock in America.
The demand for turkey has been decreasing over the years in America as per Brian Earnest, Co Bank lead economist on animal protein. The overall consumption of Turkey in America has seen a significant reduction, especially during last year’s holiday season from October to December. The consumption of Turkey is the lowest since the 1980s in America. Earnest also said that Americans are looking for alternatives to turkey as a main course in dinner such as beef and pork.
This year most grocery retailers have reduced the price of Turkey to less than American Farm Bureau Federation average prices. The price of Turkey per pound in Amazon Fresh is 49 cents and in Walmart is 88 cents and in Kroger it is 49 cents per pound of Turkey. Many Americans have turned away from big retailers due to high prices. Thanksgiving dinner discounts and offers by large retailers are now attracting shoppers on Thanksgiving Day.
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The price of ingredients in Thanksgiving dinner
Here is the list of the average price of ingredients for a Thanksgiving meal for 10 people according to the American Farm Bureau Federation
- A 16-pound turkey will cost around 25 dollars
- Two Frozen pie crusts will cost around 4 dollars
- One dozen dinner rolls will cost around 4 dollars
- 14 ounces of cubed stuffing mix will cost around 4 dollars
- Other ingredients will cost around 4 dollars
- A half pint of whipping cream will cost around 2 dollars
Conclusion
In this article, we have discussed various reasons behind the price reduction in this year’s Thanksgiving meal. Different retailers have also announced various discounts and offers for Thanksgiving dinner meals in America. For a person, the average cost of Thanksgiving dinner will be around 5 dollars this year.
