What Albanians and Europeans spend their money on: 29% on food, nearly three times the EU rate

Albanians have a much lower level of individual consumption than the European average, but they spend almost as many euros per capita on food as citizens of the European Union.

This contrast means that food accounts for a much larger share of the consumption budget in Albania.

According to Eurostat data for 2025, actual individual consumption in Albania amounts to €8,656 per person per year, or around €20.3 billion nationwide.

The EU average is €27,463 per capita, which means that the per-capita income of an Albanian is only around 32% of that of a resident of one of the European Union countries.

The sharpest difference appears in food, in terms of its share of the total, but not in absolute value—an indicator of poverty in the country. Of the €8,656 that make up annual consumption per person in Albania, €2,513 is spent on food and non-alcoholic beverages.

In total, this category is estimated at around €5.9 billion, or 29% of all actual individual consumption.

In the EU, an average of €2,847 per capita is spent on food, just around 13% more in absolute value than in Albania.

However, because of much higher disposable incomes, which give people more opportunities to spend in other categories, food accounts for only 10.4% of the European consumption basket. Food accounts for a share in Albania that is 2.8 times higher than the EU average.

After food, the categories with the largest shares in Albania are housing and energy expenses. Housing, water, electricity, gas and other fuels account for €1,172 per person, or around €2.75 billion in total.

This category accounts for 13.5% of consumption, below the EU level of 18.8%.

Furniture, household equipment and home maintenance also have a significantly larger share in Albania. Spending on this group amounts to €751 per person, or around €1.77 billion in total. The category accounts for 8.7% of consumption, compared with just 3.8% in the EU.

By contrast, healthcare accounts for a smaller share of Albanian consumption. Eurostat estimates it at €662 per capita, or around €1.56 billion nationwide, equivalent to 7.6% of the total. In the European Union, the share reaches 13.4%.

Transport also accounts for a smaller share of the Albanian consumption structure: €576 per person and around €1.36 billion in total, or 6.7%, compared with 9.9% in the EU.

Spending on restaurants and accommodation is estimated at €427 per capita, while its share of consumption is 4.9%, compared with 7.2% in the Union.

For clothing and footwear, an Albanian spends €205 a year, or 2.4% of the total, compared with the EU average of €881, or 3.2% of the total.

A high level of spending is reported under “Recreation, sport and culture,” which also includes package holidays.

In Albania, spending is estimated at €1,162 per capita, with a total value of around €2.73 billion, compared with the EU average of €1,900 per capita.

The share reaches 13.4%, almost double the European average of 6.9%, with a resident of the EU spending an average of €2,730 a year on transport.

At first glance, this item appears to be very high, but this reflects more than high spending on entertainment. The main reason is the way national accounts are compiled.

INSTAT, the primary source of data for Albania, explains that household final consumption is not based solely on the Household Budget Survey, but is reconstructed from a number of administrative and economic sources.

For the “Recreation and culture” group in particular, INSTAT says that package holidays are assessed by extrapolating data based on the output of the accommodation and food-service sector, while audiovisual equipment, major recreational equipment, recreational goods, gardening, pets, books and stationery are also assessed using trade output.

Audio and video equipment is also assessed using imports, with VAT and the trade margin added. By contrast, the 2024 Household Budget Survey, in which households report their spending, puts recreation and culture at only 2.6%.

Eurostat explains that the actual individual consumption indicator is broader than the payments households make directly out of pocket, as it also includes individual services financed by the state, particularly in areas such as healthcare and education./Monitor