Hosting Fourth of July Independence Day parties will cost nearly $100 this year as consumers look for value for money

Even though their wallets are a little tight on the Fourth of July, Americans still enjoy spending money on barbecues.

When it comes to the holidays, consumers are “generally willing to spend,” Katie Thomas of the Kearney Consumer Institute told Yahoo Finance, noting that mediocre consumer sentiment is unlikely to negatively impact grocery sales.

Overall, according to the National Retail Federation, Americans expect to spend a whopping $9.4 billion on food alone on July 4.

Those who organize barbecues must expect somewhat higher costs. A barbecue index by the Rabobank Group found that a barbecue for ten people this year will cost Americans around $99 – more than ever before. Important ingredients such as beer, beef, lemonade and salad make up almost two-thirds of the total cost.

The holiday does offer an opportunity to save money. July 4 is the most popular day for grilling at home. That’s “really beneficial” for consumers, says Michael Swanson, chief agricultural economist at Wells Fargo, since eating out drove up overall food inflation again last month.

In May, food prices rose 1% year-on-year, while restaurant dining costs rose 4% year-on-year, both consistent with trends seen in recent months.

Wells Fargo reported that grilling hamburgers for a party of 10 can save you nearly $50 compared to eating out, not including taxes and tips. To break it down even further, the average price for a hamburger with all the fixings, cheese, lettuce and tomato is $2.15 at home, compared to $6.95 at a restaurant.

The cost of a barbecue in 2024

There will still be a price shock at the checkout.

Ground beef costs $5.33 per pound this year, 4.9 percent more than last year, which is “unfortunately a result of last year’s increase,” Swanson said.

Two other popular protein products, frankfurters and chicken, saw year-on-year prices rise 7.3% and 1.4%, respectively.

As for toppings, lettuce prices rose 1%, tomatoes 3.9% and condiments 2%. However, cheese prices fell 3.4% year-on-year.

Chips are up 2.7% year-on-year, according to mid-June Bureau of Labor Statistics data provided to Wells Fargo. Guacamole could be the hottest item this year: It’s down 1.1%, while salsa is up 2.5%.

However, those with a sweet tooth will have to pay dearly for this. According to Swanson, the increased cost of sweeteners is driving up ice cream prices by 3.3%.

As for beverages, consumers are better off buying 2-liter bottles instead of cans to save money as aluminum has become more expensive. The bill for 2-ounce cans has increased 4.8 percent, while the cost of 2-liter bottles has decreased 6.5 percent compared to last year.

The story goes on

And if you want to toast with alcoholic beverages, you’ll have to expect to spend a little more. According to Wells Fargo, beer has become 1.2 percent more expensive and wine 3.4 percent more expensive.

Savvy consumers will look for deals

There are still bargains to be had and consumers are shopping in stores for the best prices, Brendan Foley, CEO of McCormick (MKC), told Yahoo Finance senior editor Brian Sozzi.

“The consumer is definitely showing off a lot and putting a lot of emphasis on their behavior,” Foley said, noting that shoppers are scanning the perimeter of the store for deals first before heading into the aisles. “They’re really being more selective about prices, and we’re definitely seeing that throughout the store.”

Similar to price competition in the fast food sector, grocery stores have also expanded their offerings to meet the needs of price-conscious Americans.

Walmart (WMT) is doubling down on advertising its low-priced everyday model. Target (TGT) announced plans to slash prices on 5,000 staples including milk, meat, bread, soda, fresh fruits and vegetables. And Aldi shared its plans to slash prices on 250 items through Labor Day.

Private labels as well as wholesalers such as Costco (COST), Walmart’s Sam’s Club and BJ’s (BJ) could be among the winners in this value-oriented environment.

“You’ll see that the consumer is smart,” Thomas said. “They’ll compare prices. They’ll figure out what they can buy in bulk.” She added that consumers “don’t care so much whether it’s a private label or not. Frankly, it’s about quality for the price.”

Purchasing private label items can be an important way to save money, Swanson advises, especially on items that guests won’t recognize after unpacking.

“Once you put the chips in the bowl, people won’t know if they were in a private label package or a branded package,” Swanson said. “But if you keep drinks in the fridge, they’ll definitely see what brand it was when they pick up the can.”

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Brooke DiPalma is a senior reporter at Yahoo Finance. Follow her on Twitter at @Subscribe to or email her at [email protected].

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