This topic really interests me. I have read that we now spend far less on food (proportionally) than we used to. In 1975, 25% of the average household's disposable income in the UK was spent on food, as opposed to 12% in 2001. In "Not on the Label", Felicity Lawrence states average spending on food has fallen from 1/3 of income to just 10% (don't know if this is gross, net, disposable income or what, but it gives you a comparison). Food is becoming cheaper and the quality of much of it seems to be deteriorating too. We seem to only value a bargain and not consider the real cost of what we are putting in our mouths in terms of health, animal welfare, the environment etc.
In our house we have made a conscious effort to value good food and have cut down on our other spending so that we can spend more on high-quality food. Obviously not everyone has the choice to do this, but we were able to, by cutting back on going out, clothes etc. I estimate dp and I spend about 12% of our gross income (can't do the maths to work out what percent of our disposable income) on food, and from talking to friends it seems that is more than others on the same sort of income are spending. How much do you spend, as a proportion of what you earn, and do you think this is a lot?