How Corporate Consolidation Leads to Higher Food Prices

Consumers face soaring prices at the grocery store while corporations report record revenues. 

Egg prices have been discussed across the web, from TikTok to the New York Times. Consumers in every corner of the United States are feeling financial pressure at the supermarket and not just because of eggs. Since 2021, overall grocery prices have risen 23%, and from 2020 to 2024 the cost to feed a family of four grew 2.5 times more than the rate of inflation. 

Meanwhile, the top four grocery retailers saw revenue increases between 9% and 36% over this four-year period. Giants in the meat industry also raked in profits. Tyson Foods saw a revenue increase of 22.5%, and Perdue reported a 54.9% increase. 

Inflation and distribution in supply chains are not to blame; corporate consolidation is. 

Corporate Consolidation in the Food Market 

Corporate consolidation occurs when a few large food companies, retailers, and processors purchase smaller businesses, adding them to their brand portfolios. A market is considered “consolidated” when just a few companies dominate an entire sector. Think of Nestlé, the world’s largest food manufacturer. The company has bought hundreds of brands over the years and now owns over 2,000, including KitKat, Lean Cuisine, and Gerber. Tyson, the largest meat company, owns Jimmy Dean, Ball Park, and Hillshire Farms. But consolidation is not just in ready-to-eat meals, snacks, and meats. The carrot supply is dominated by just two companies, which own 60% of the market. 

During the past 50 years, policies have also swayed in favor of vertical integration. Now large companies often own every step of the production process, from seed to distribution. This shift has given them even more control over pricing, production, and availability. 

Corporate Consolidation Leads to Higher Prices for Consumers 

While the U.S. government used to push back on consolidation within sectors, it is now more likely to support big corporations over communities. The government has allowed mergers and acquisitions in which corporate giants cement their dominance. When a single company has a monopoly in a sector, it can dictate prices. With few competitors, large corporations can artificially inflate food costs. 

They also have the ability to adopt cost-cutting strategies that make it impossible for smaller stores to compete. This leads to smaller stores closing and big-box stores becoming the only option in town. Competition decreases, and dominant companies can raise their prices once more. 

How Consolidation Hurts Farmers 

The price of beef continues to rise on supermarket shelves as a result of consolidation. But farmers’ shares of beef prices dropped by 14% from 2019 to 2024. On average, farmers earn just 15.9 cents of every dollar spent on food. Even those who secure “coveted” contracts with big corporations don’t find the financial success they are promised. It’s no wonder that the number of farms in the United States continues to decline. To make matters worse, as small farms close up shop, Big Ag is standing by to scoop up their land and consolidate the industry further, gaining even more power. 

Building a Better Food Future 

Our food system doesn’t have to continue on the same path. At Transfarmation^™, we believe in a just, equitable, and sustainable food system for all—one that prioritizes farmers, communities, and planetary health over corporate profits. That’s why we work directly with farmers trapped in contracts with Big Meat. We are proud to offer them a way out by transitioning from farming animals to growing produce. 

If we put the power back in the hands of farmers and communities, we can break free from corporate control. Buying from farmers markets, co-ops, or farmers directly can be one of the best ways to support responsible farming. 

Learn how you can be a force for change by supporting local farmers.