As seen in a recent study by Nielsen, one in three consumers are spending more on premium products (normally 20 percent more expensive than the average price) and would consider spending more on a premium offering in key grocery categories. Nielsen Scantrack data highlights that consumers are trading up everyday products in their shopping. Meat and seafood proved to be the top choices when considering a higher price tag. Tea and coffee came in second, with one in four Pacific consumers treating themselves to a premium beverage. Coffee pod purchases have doubled in to $15 million in the past two years – growing eight times faster than total coffee. Dairy came in third with 23 percent of consumers saying they would purchase premium when given the option.
"Pacific shoppers are socially conscious when it comes to top tier goods, with more than two in three consumers spending more on products that contain environmentally friendly or sustainable materials," explained Julianne Westaway, director of Nielsen. "They are also choosing products that are organic or have all natural ingredients."
Three in five consumers demonstrated a willingness to pay more for products that deliver on social responsibility claims. In many consumers' minds, 'green' attributes justify a higher price tag. Marketers can capitalise on this this premium trend by looking into Fair Trade and responsible practice certifications.
"Premium products should be activated in a way that amplifies the product's unique proposition. Several considerations should be kept in mind when optimising how these brands are marketed including how consumers see the products on the shelf, pricing promotions and emotional resonance of brands in managing perceptions."