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Food Economics: From Kitchen to Global Market

Why Healthy Food Can Cost More

Why a nutritious diet is out of reach for billions of people, why calories from processed foods are often cheaper, and what policies can help.

Eating enough calories and eating well are not the same. Around the world, cheap calories are widely available from staples, sugar and oils, but a healthy diet with fruits, vegetables, pulses, dairy, eggs and fish costs more.

Billions cannot afford a healthy diet

The Food and Agriculture Organization’s State of Food Security and Nutrition in the World report estimates the cost of a healthy diet in each country and compares it with incomes. It has found that around 2.8 billion people worldwide could not afford a healthy diet in recent years. The problem is most severe in South Asia and sub-Saharan Africa.

Why nutritious food costs more

  • Perishability: fruits, vegetables, milk and fish spoil quickly, requiring cold storage and fast transport.
  • Lower yields and more labour: producing fruit, vegetables and animal foods often uses more land, labour or care per calorie.
  • Agricultural policy: many countries have long subsidised staple grains, making them cheaper relative to other foods.
  • Economies of scale: highly processed foods can be mass-produced, stored for long periods and shipped cheaply.

The cost per calorie

Studies comparing foods by price per calorie find that sugary and fatty processed foods are among the cheapest sources of calories, while fruits and vegetables are among the most expensive. For families on tight budgets trying to avoid hunger, cheap calories make economic sense, even if they are less healthy.

A tight food budget

A family has a small daily food budget. Rice and cooking oil provide many calories cheaply, filling stomachs. Adding vegetables, pulses, eggs and milk would greatly improve nutrition but might double the cost. When money is scarce, the family prioritises avoiding hunger, and diet quality suffers.

Policies that help

  • Investment in fruit and vegetable production, storage and transport.
  • Shifting subsidies from only staples toward more diverse foods.
  • Social programmes that provide nutritious foods, such as school meals, fortified foods and support for pregnant women and young children.
  • Nutrition education.
Thinking poor diets are simply bad choices

Diets are strongly shaped by prices, incomes and access. When nutritious foods cost much more per calorie, low-income families face real trade-offs. Making healthy food affordable is as important as encouraging healthy choices.

Key takeaways
  • Around 2.8 billion people could not afford a healthy diet, according to FAO estimates.
  • Nutritious foods cost more due to perishability, labour and past subsidies for staples.
  • Processed foods are often the cheapest source of calories.
  • Investment, shifting subsidies and nutrition programmes can make healthy diets more affordable.
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