Statistics Explained

Household consumption by purpose


Data extracted: 10 November 2023.

Planned article update: November 2024.

Highlights

In 2022, household consumption expenditure increased by 4.7 % in the EU compared with 2021.
In 2022, household consumption expenditure is 1.0 % higher than before the COVID-19 pandemic in 2019.
In 2022, household consumption expenditure increased the most for 'Restaurants and hotels' (+33.8 %), 'Recreation and Culture' (+14.7 %), 'Clothing and footwear' (+11.5 %) and 'Transport' (+4.7 %), compared with 2021.


Horizontal bar chart showing household expenditure by consumption purpose as percentage change in the EU. Each consumption purpose has two bars representing the percentage change between the years 2022 and 2021 and percentage change between the years 2022 and 2019.
Household expenditure by consumption purpose, EU, % change between 2022-2021 and 2022-2019
Source: Eurostat (nama_10_co3_p3)

This article analyses trends in the structure of household final consumption expenditure by consumption purpose (COICOP) which can be expected to have a significant influence on citizens' wellbeing.


Full article

Recovery from COVID-19 pandemic in 2022

The outbreak of the COVID-19 pandemic in Europe had severe economic impacts that are reflected in national accounts estimates for 2020 and 2021. There was a significant effect on both the overall level and the structure of household consumption, but in 2022 almost every category returned to or exceeded pre-pandemic levels. By showing the comparison with 2019, this section presents the recovery from the COVID-19 pandemic for the year 2022 for European aggregates and for countries. The comparison with 2021 is shown as well.


Developments by COICOP categories

To illustrate the recovery from the COVID-19 pandemic, Figure 1 shows changes in expenditure by category in 2022 compared with both 2021 and 2019. Compared with 2021, household consumption expenditure increased by 4.7 % in volumes in the EU. For the specific categories, the largest increases can be seen for 'Restaurants and hotels' (+33.8 %), which were heavily impacted by the COVID restrictions and closures and almost reached pre-pandemic levels in 2022. 'Recreation and culture' (+14.7 %), 'Clothing and footwear' (+11.5 %) and 'Transport' (+4.7 %) are also increasing.

Compared with 2019, the largest increase in 2022 is observed for 'Communications' (+11.6 %), followed by 'Health (+8.8 %) and 'Furnishings, household equipment and routine household maintenance' (+5.7 %). However, certain categories still lagged behind pre-COVID figures. Specifically, in 2022, household consumption was still below 2019 volumes for 'Transport' (-7.8 %), 'Restaurants and hotels' (-2.4 %), and 'Education' (-1.5 %).


Horizontal bar chart showing household expenditure by consumption purpose as percentage change in the EU. Each consumption purpose has two bars representing the percentage change between the years 2022 and 2021 and percentage change between the years 2022 and 2019.
Figure 1: Household expenditure by consumption purpose, EU, % change between 2022-2021 and 2022-2019
Source: Eurostat (nama_10_co3_p3)


Developments by country

Almost all EU Member States recorded increases in household consumption in the year 2022 compared with 2021. The highest increases in household consumption were recorded in Malta (+18.9 %), followed by Cyprus (+11.8 %) and Croatia (+11.1 %). Czechia was the only country registering a slight decrease (-0.1 %) in 2022 compared to the previous year.

Compared with 2019, only five EU Member States, Czechia (-6.0 %), Spain (-1.5 %), Germany (-1.0 %), Italy (-0.8 %) and Austria (-0.7 %), exhibited lower volumes of household consumption expenditure in 2022. The largest increases in 2022 compared with 2019 were observed for Croatia (+13.7 %), Romania (+9.9 %) [1], Bulgaria and Estonia (both +8.9 %).


Vertical bar chart showing percentage change of household expenditure in the EU, euro area, individual EU Member States, Iceland and Norway. Each country has two columns representing the percentage change between the years 2022 and 2021 and percentage change between the years 2022 and 2019.
Figure 2: Household expenditure by Member State, % change between 2022-2021 and 2022-2019
Source: Eurostat (nama_10_co3_p3)


Composition of EU household expenditure in 2022

Looking at the composition of EU household expenditure by consumption purpose and by the main 12 COICOP categories based on current price figures (see Figure 3, Table 1 and Table 2), almost a quarter of EU household expenditure (24.1 % of total or 12.4 % of GDP) was devoted to 'Housing, water, electricity, gas and other fuels'. Other large shares are observed for 'Food and non-alcoholic beverages' (13.6 % of the total or 7.0 % of GDP), 'Transport' (12.5 % of the total or 6.4 % of GDP), and 'Miscellaneous goods and services' (11.3 % of the total or 5.8 % of GDP). 'Housing, water, electricity, gas and other fuels', 'Food and non-alcoholic beverages' and 'Transport' account for half of the total household expenditure (50.2 %), with the composition remaining stable compared with 2021.


Pie chart showing household expenditure by consumption purpose (COICOP) as percentage share of the total in the EU for the year 2022.
Figure 3: Household expenditure by consumption purpose - COICOP, EU, 2022, share of the total
Source: Eurostat (nama_10_co3_p3)


'Restaurants and hotels' (8.5 % of the total or 4.4 % of GDP), 'Recreation and culture' (8.4 % of the total or 4.3 % of GDP) and 'Furnishings, household equipment and routine household maintenance' (5.8 % of the total or 3.0 % of GDP) followed. The remaining household spending was distributed over 'Health' (4.5 % of the total or 2.3 % of GDP), 'Clothing and footwear' (4.3 % of the total or 2.2 % of GDP), 'Alcoholic beverages, tobacco and narcotics' (4.0 % of the total or 2.1 % of GDP), 'Communications' (2.3 % of the total or 1.2 % of GDP) and 'Education' (0.8 % of the total or 0.4 % of GDP, which together represented 15.9 % of total household expenditure or 8.2 % of EU GDP in 2022.


Analysis of EU aggregates

In 2022, EU total household expenditure amounted to 51.5 % of GDP, registering a slight increase compared with 2021 (49.8 % of GDP) and reaching almost the same share registered in 2019, when it amounted to 52.4 % of GDP. An overall downward trend has been observed since 2012, when household expenditure was at 54.9 % of GDP.


Table showing evolution of household expenditure by consumption purpose (COICOP) as cumulated percentage of GDP from the year 2012 to 2022.
Table 1: Evolution of household expenditure by consumption purpose - COICOP, EU, 2012-2022, cumulated % of GDP
Source: Eurostat (nama_10_co3_p3)


Table showing evolution of household expenditure by consumption purpose (COICOP) as percentage share of total expenditure from the year 2012 to 2022.
Table 2: Evolution of household expenditure by consumption purpose - COICOP, EU, 2012-2022, share of total
Source: Eurostat (nama_10_co3_p3)

Composition in 2022 compared with 2019

Comparing the composition in 2022 with 2019, the largest decreases of shares were recorded for 'Transport' (-0.7 pp), followed by 'Clothing and footwear' and 'Recreation and culture' (both -0.3 pp). The largest increases in shares between 2019 and 2022 were recorded for 'Housing, water, electricity, gas and other fuels' (+0.6 pp), 'Food and non-alcoholic beverages' (+0.5 pp) and 'Furnishings and household equipment' (+0.2 pp).


Evolution of volumes compared with 2019

The analysis of household consumption in terms of volumes allows also for some interesting insights: the development of volumes (total) during the period 2010-2022 shows a gradual increase, with a few exceptions, over the whole period up to 2020, where we can see the impact of the COVID-19 pandemic. Starting from 2021, the effect of the recovery can be observed, along with the positive trend that continues in 2022, with important increases registered in both years for 'Restaurants and hotels', 'Recreation and culture', 'Clothing and footwear' and 'Health’. Despite the strong growth in 2021 and 2022, three categories, 'Transport', 'Restaurants and hotels' and 'Education' lag behind pre-pandemic levels.


Line chart showing evolution of chain linked volumes of household expenditure by consumption purpose (COICOP) in the EU. A line represents each of the 13 consumption purposes over the years 2010 to 2022. The year 2010 is indexed at 100.
Figure 4: Evolution of chain linked volumes, index 2010=100 of household expenditure by consumption purpose - COICOP, EU, 2010-2022
Source: Eurostat (nama_10_co3_p3)


Evolution of implicit deflator

Finally, some trends in the implicit deflator [2] seem worth mentioning: the development of implicit prices (of total) during the period 2010-2022 shows a steady increase. Compared to 2010, the largest increases were recorded in 'Alcoholic beverages, tobacco and narcotics' (+37.0 %), 'Food and non-alcoholic beverages' (+33.4 %), ‘Restaurants and Hotels’ (+29.7 %), ‘Transport’ (+29.5 %) and 'Housing, water, electricity, gas and other fuels' (+28.1 %); decreases were noted in 'Communications' (-25.1 %).

When comparing with 2021, the largest increases were registered for 'Transport' (+11.5 %), 'Food and non-alcoholic beverages' (+11.2 %) and 'Housing, water, electricity, gas and other fuels' (+8.4 %), while a decrease was registered for 'Communications' (-0.4 %).


Line chart showing evolution of implicit deflator of household expenditure by consumption purpose (COICOP) in the EU. A line represents each of the 13 consumption purposes over the years 2010 to 2022. The year 2010 is indexed at 100.
Figure 5: Evolution of implicit deflator, index 2010=100 of household expenditure by consumption purpose - COICOP, EU, 2010-2022
Source: Eurostat (nama_10_co3_p3)


Country specific trends

Household expenditure shares in 2022 still the highest in Greece and Croatia

Looking at the situation by country, the analysis can also point out some interesting trends: as a ratio to GDP in 2022, the highest shares of household expenditure were found in Croatia (75.3 %), Greece(74.6 %) and Portugal (68.8 %). The lowest shares were recorded in Ireland (23.9 %), Luxembourg (32.2 %) and the Netherlands (42.2 %).


Vertical bar chart showing household consumption expenditure as cumulated percentage of GDP in the EU, euro area, individual EU Member States, Iceland and Norway for the year 2022.
Figure 6: Household consumption expenditure by Member State, 2022, cumulated % of GDP
Source: Eurostat (nama_10_co3_p3)



In the EU as a whole, as well as in nearly all EU Member States, 'Housing, water, electricity, gas and other fuels' was still the most significant item of household expenditure in 2022, followed by 'Food and non-alcoholic beverages' and 'Transport'.

As regards expenditure on 'Housing, water, electricity, gas and other fuels', the highest shares in household expenditure can be observed in Slovakia (30.3 %), Finland (29.7 %) and Denmark (29.1 %). The lowest shares were registered in Malta (14.1 %), Croatia (14.9 %) and Lithuania (16.4 %).


Vertical bar chart showing housing, water, electricity, gas and other fuels as percentage of total expenditure in the EU, euro area, individual EU Member States, Iceland, Switzerland and Norway for the year 2022.
Figure 7: Housing, water, electricity, gas and other fuels, Member States, 2022, % of total expenditure
Source: Eurostat (nama_10_co3_p3)


For expenditure on 'Food and non-alcoholic beverages', the highest shares were recorded in Romania (25.0 %) [3], Bulgaria (20.8 %) and Latvia (19.7 %). The lowest shares were observed in Ireland (8.0 %), Luxembourg (9.3 %) and Austria (10.0 %).


Vertical bar chart showing food and non-alcoholic beverages as percentage of total expenditure in the EU, euro area, individual EU Member States, Iceland, Switzerland and Norway for the year 2022
Figure 8: Food and non-alcoholic beverages, Member States, 2022, % of total expenditure
Source: Eurostat (nama_10_co3_p3)


Concerning expenditure on 'Transport', the highest shares in household expenditure were noted in Slovenia (17.5 %), Lithuania (16.5 %) and Luxembourg (14.7 %), while the lowest shares were found in Slovakia (5.3 %), Croatia (8.3 %) and Belgium (9.6 %).


Vertical bar chart showing transport as percentage of total expenditure in the EU, euro area, individual EU Member States, Iceland, Switzerland and Norway for the year 2022.
Figure 9: Transport, Member States, 2022, % of total expenditure
Source: Eurostat (nama_10_co3_p3)

Source data for tables and graphs

Data sources

Eurostat collects data on household final consumption expenditure according to the international Classification of individual consumption by purpose (COICOP) in the framework of ESA2010.

The transmission requirements for each dataset are defined in ESA 2010 transmission programme. For COICOP data these are T+9 months after the reference period. Therefore, in this article the latest data available refer to the year 2022.

Breakdowns

Household consumption expenditure is classified by consumption purpose according to the COICOP classification (Classification Of Individual Consumption by Purpose, see also Commission Regulation (EC) No 113/2002 of 23 January 2002). COICOP categories at three-digit level are as follows:

P01 - Food and non-alcoholic beverages

P011 - Food
P012 - Non-alcoholic beverages

P02 - Alcoholic beverages, tobacco and narcotics

P021 - Alcoholic beverages
P022 - Tobacco
P023 - Narcotics

P03 - Clothing and footwear

P031 - Clothing
P032 - Footwear

P04 - Housing, water, electricity, gas and other fuels

P041 - Actual rentals for housing
P042 - Imputed rentals for housing
P043 - Maintenance and repair of the dwelling
P044 - Water supply and miscellaneous services relating to the dwelling
P045 - Electricity, gas and other fuels

P05 - Furnishings, household equipment and routine household maintenance

P051 - Furniture and furnishings, carpets and other floor coverings
P052 - Household textiles
P053 - Household appliances
P054 - Glassware, tableware and household utensils
P055 - Tools and equipment for house and garden
P056 - Goods and services for routine household maintenance

P06 - Health

P061 - Medical products, appliances and equipment
P062 - Outpatient services
P063 - Hospital services

P07 - Transport

P071 - Purchase of vehicles
P072 - Operation of personal transport equipment
P073 - Transport services

P08 - Communication

P081 - Postal services
P082 - Telephone and telefax equipment
P083 - Telephone and telefax services

P09 - Recreation and culture

P091 - Audio-visual, photographic and information processing equipment
P092 - Other major durables for recreation and culture
P093 - Other recreational items and equipment, gardens and pets
P094 - Recreational and cultural services
P095 - Newspapers, books and stationery
P096 - Package holidays

P10 - Education

P101 - Pre-primary and primary education
P102 - Secondary education
P103 - Post-secondary non-tertiary education
P104 - Tertiary education
P105 - Education not definable by level

P11 - Restaurants and hotels

P111 - Catering services
P112 - Accommodation services

P12 - Miscellaneous goods and services

P121 - Personal care
P122 - Prostitution
P123 - Personal effects n.e.c.
P124 - Social protection
P125 - Insurance
P126 - Financial services n.e.c.
P127 - Other services n.e.c.


Context

Consumption expenditure is what people, acting either individually or collectively, spend on goods and services to satisfy their needs and wants. A household’s economic well-being can be expressed in terms of its access to goods and services. The more that can be consumed, the higher the level of economic well-being, though the relationship between the two is not a linear one. Measuring consumption expenditure might, therefore, be a way of measuring economic well-being.

Studies of consumption investigate how and why society and individuals consume goods and services, and how this affects society and human relationships. Contemporary studies focus on meanings of goods and the role of consumption in identity making. Traditionally, consumption was seen as rather unimportant compared with production, and the political and economic issues surrounding it. However, with the development of a consumer society, increasing consumer power in the market place, the growth in marketing, advertising, sophisticated consumers, ethical consumption etc., it is recognised as central to modern life.

In national accounts, the final consumption expenditure of households is the biggest component of the expenditure approach to GDP. Its evolution allows an assessment of purchases made by households, reflecting changes in wages and other incomes, but also in employment and in savings behaviour.

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Annual national accounts (t_nama)
National accounts detailed breakdowns (by industry, by product, by consumption purpose) (t_nama_brk)
Final consumption expenditure of households by consumption purpose (COICOP) (t_nama_co)
Household expenditure per inhabitant, by category (tsdpc520)


Mean consumption expenditure of private households (hbs_exp)
Structure of mean consumption expenditure (hbs_struc)
Annual national accounts (nama),
National Accounts detailed breakdowns (by industry, by product, by consumption purpose) (nama_brk)
Final consumption expenditure of households by consumption purpose (COICOP) (nama_co)
Final consumption expenditure of households by consumption purpose - COICOP 3 digit - aggregates at current prices (nama_co3_c)
Final consumption expenditure of households by consumption purpose - COICOP 3 digit - volumes (nama_co3_k)
Final consumption expenditure of households by consumption purpose - COICOP 3 digit - price indices (nama_co3_p)
Harmonised indices of consumer prices (HICP) (prc_hicp)
HICP - Item weights (prc_hicp_inw)


Notes

  1. Data for Romania are preliminary estimates from March 2023 that are expected to be revised.
  2. Implicit deflator series are derived as a ratio of current price to chain-linked volumes series and give indication of underlying price changes.
  3. Data for Romania are preliminary estimates from March 2023 that are expected to be revised.