The 5 Most Overpriced Items At The Grocery Store

It's not hard to see the staggering difference between grocery prices now vs. the 1950s, but what may be even more shocking is how significantly food prices have risen for the American consumer in the last five years since the pandemic hit. In fact, according to the USDA the costs for food at home were 2.8% higher in April 2025 than in the same month of 2024, with grocery prices expected to continue to rise another 2.1% this year. And while experts predict that all this talk of tariffs will mean no end in sight to rising food costs for shoppers, there are ways to help bring down the costs of your own grocery bill, including limiting or avoiding the five most overpriced items at your local grocery store. 

Even though these offenders — pre-cut produce, fresh-baked in store goods, organics, spices, and bottled water — are historically among the most marked up items in the grocery store, they're also largely all convenience items, and that convenience comes at a price. The good news is that you can help offset the costs of inflation in your own home, as these are all items that you can easily swap for those with a lesser price tag or with a little of your own elbow grease. 

Life comes with plenty of trade-offs, one of which is that added convenience comes at an additional cost. The same is true when it comes to your groceries and convenience foods. Among these convenience foods is one of the biggest time-savers in any fridge: the pre-washed, pre-cut vegetables and fruits, which also come with an average 40% markup, according to Finale Inventory. So why do pre-cut vegetables cost so much at the grocery store?  Because done-for-you items have more labor involved. That additional labor is increased perceived value by busy consumers who'll happily pay extra for few more minutes with their kids or partner, or to carve out a little time for self-care. 

How to beat it: While the obvious answer here is to DIY, you can still have convenience even if you're providing the labor. Just set aside some time to do a little meal prep in advance — on the weekend for the following week or in the evenings the night before is ideal. All that peeling, chopping, and packing can easily be done simultaneously while catching up on your latest TV series or podcast, so you'll never feel the pain of prep. But the best hack of all may be to just buy frozen. Produce in your grocer's freezer is usually cheaper, pre-washed, pre-cut, and frozen at the peak of ripeness. And because it's frozen, you'll end up with less overall produce waste when you forget about that broccoli you bought 2 weeks ago.

With a gross profit margin of nearly 60%, according to The Retail Owners Institute, those fresh-baked in-store goodies, like specialty breads, cupcakes, cookies, sheet cakes, muffins, etc., might smell great as you shop, but something most definitely seems a little fishy here, as your grocer's bakery may have one of the biggest markups in the entire grocery store. Why? Precisely because of that sensory temptation, pulling you in like a siren's call. Suddenly, a croissant or hunk of baguette sounds like the perfect reward for a busy shopping day. Or maybe you'll grab some mini-muffins for work tomorrow or have them pipe a quick celebratory message on one of their fresh-baked cakes for your child's birthday instead of whipping one up from scratch yourself. Whatever's in the case, just remember, don't make this mistake with fresh baked goods at the grocery store — because the treat is a trap.

How to beat it: While making baked goods from scratch will most certainly save you the most dough, when time is of the essence, you can always do it for less time and money by grabbing a simple "just-add" mix straight from a box. If all else fails, look for day-old breads and sweets and at least snag yourself a deal.

Organic foods are a multi-billion dollar industry garnering a nearly 20% percent markup across the board. Researchers at the USDA's Economic Research Service report, "Organic retail sales were estimated to be more than $52 billion." While business is booming in the organics sector, many consumers still struggle to understand what the differences are between foods labeled natural vs. organic and if those differences are worth the hit to their pocketbooks.

While the notion that organic does not mean "pesticide-free" has gained traction recently, the confusion really comes down to how terms like "organic," "chemical," "pesticide," "natural," and even "toxicity" are defined within their scientific context. Though American food production is much more complex than we can effectively break down here, it's important to note that synthetic pesticides are generally eschewed when it comes to organic standards; the industry does rely on the use of natural pesticides as a last resort.

How to beat it: Buy organic smart. That means saving money by purchasing locally produced, frozen, and store brand private label organics or buying organic only on those foods with the highest synthetic pesticide residue and banking on those "clean" transitional or commercially grown fruits and vegetables to save you some green.

Name brand spices bring with them a very hefty markup — nearly double the wholesale cost. While it's a nice margin for grocers, it's also one of the biggest reasons why you should think twice before buying spices at the grocery store. Some of the other reasons why it may pay to get your spices elsewhere are shelf life concerns over freshness and flavor, a greater available selection, and the ability to buy just what you need instead of having something you use only once a year lingering and taking up valuable spice space in your cupboards.

How to beat it: Check out specialty spice shops where the niche focus means freshness is key, or hit up local natural and international stores, where the variety of spices may well be greater and the ability to buy in bulk and get as little or as much as you want can save you some serious coin. And who knows, with all those fresh bulk spice in your cupboards, you may just be inspired to come up with some of your own spicy blends.

Let's face it, bottled water may well go down as one of the biggest examples of powerful marketing creating artificial need that there ever was. I mean, it does spill right out of the tap in your own abode and, in most areas of the country, the water is quite drinkable. Even if your tap water tastes less than stellar, there is much to consider when it comes to bottled water (including leaching microplastics into your water and subsequently your body, the environmental impacts on the planet, and perhaps most importantly in this context, the reputed 4000% markup, per Reader's Digest). Source matters when it comes to picking the best tasting bottled water, but whether its tap, purified, or spring that floats your boat, it's all a matter of taste. What isn't up for debate is the incontrovertible impact on your wallet.

How to beat it: Drink water from your tap and buy a reusable vessel for use on the go. With all of the keep-it-cool options available, the sustainability, and the street cred of accessorizing your Stanley Cup to match your daily mood — this one is a win-win-win. But if taste, cleanliness, or PFAs (forever chemicals) still have you worried about your tap, then bottled water (which is often less well-regulated than tap water) is still not your friend. There are affordable water filters that can successfully remove these harmful chemicals.