AUSTRALIA | While conscious consumerism and mindful shopping thrive in Australia, rising daily costs may have reignited a newfound fondness for private-label brands.
Recent research conducted by YouGov and commissioned by ShopFully revealed that an overwhelming 95 percent of Australians were open to choosing store-brand, private-label products when grocery shopping, with cost as the primary factor.
However, consumer perception or preference has also shifted, with many indicating they could be encouraged to purchase these products if they believe the quality matches or even if taste exceeds other well-known options.
“As Aussies remain committed to keeping grocery costs in check, private-label brands are demonstrating how innovation and value alignment can drive consumer loyalty,” said Brendan Straw, ShopFully’s Country Manager for Australia.
“Competitor brands can learn from this success by focusing on affordability, keeping costs low without compromising quality. Brands could look towards offering extended promotions and incentives as one way to re-engage consumers.”
Aside from those budgeting, private-label brands have been appealing to the health-minded, with more than two in five Australians saying they could gravitate towards store-brand options that feature precise ingredients and nutritional labelling.
Thirty percent said they might be drawn to those offering organic or healthier choices. Ethical or sustainable practices may further drive these preferences, with 26 percent of Australians prioritising these values in their purchasing decisions.
Convenience may also be a factor, with nearly a quarter revealing they could be encouraged to purchase from private-label brands if these simplified the decision-making process.
Generational differences also emerge when it comes to this trend. Older Australians, such as Gen X and Baby Boomers, were more likely to agree they could be encouraged to purchase private-label products if they cost less.
In contrast, Gen Z was much more likely to be influenced by appealing packaging than Gen X and Baby Boomers.
“Brands that listen to their target customers’ priorities will find the most success. Whether it’s focusing on sustainability, producing plant-based or ‘free-from’ alternatives to attract younger consumers, or prioritising affordability and innovation to keep costs low for older generations,” said Straw.
Many Australian grocery shoppers are also reconsidering routine household purchases such as eggs, milk, and bread. Over three in five consider cost when selecting these items. This trend was even more significant regarding more nutritional items such as fruit and vegetables, with almost seven in ten Aussie grocery shoppers purchasing produce based on the most competitive price.
Data revealed that Australians were mindful grocery shoppers, with a third motivated by sustainability when purchasing food staples. Generationally, Millennials led this trend, most interested in sustainably sourced staples, followed by Gen Z. However, this is less of a priority for the older generations, such as Gen X and Baby Boomers.
“Essential grocery items like milk, bread, and fresh produce are at the heart of every household’s shopping list, so it’s no surprise that cost has become a critical factor in these decisions, especially as living expenses remain high. Yet, Aussies won’t waver on quality, putting pressure on retailers to offer competitive prices and value-driven options.”
While many Australian grocery shoppers have embraced a more holistic lifestyle, finances remain a high priority. More than a third purchase fewer dietary-specific foods (e.g., plant-based or ‘free-from’ products) due to cost.
Interestingly, however, the data revealed a growing community of dietary-specific consumers, with 35 percent of Australian grocery shoppers selecting food staples based on dietary preferences, such as gluten- or lactose-free alternatives. This was most seen with Millennials.
Households with children under 18 behave especially cost-conscious, often purchasing fewer dietary-specific items due to price. Yet, parents were more likely to choose alternative products to accommodate their children's dietary needs, with 38 percent doing so compared to 20 percent of households without children.
“For existing retailers, this trend presented a golden opportunity to capture consumer loyalty by emphasising transparency, sustainability, and value-based offers. Retailers can also find success by addressing the preferences of the rapidly growing dietary and health-conscious consumer base, securing a competitive edge and fostering long-term customer relationships.”
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