While conscious consumerism and mindful shopping continue to thrive in Australia, rising daily costs could see a growing preference for private label brands.
Recent research conducted by YouGov and commissioned by ShopFully reveals that 95% of Australians are open to choosing store-brand, private label products when grocery shopping – with cost the primary factor (68%).
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 (63%) or even if taste exceeds other well-known options (43%).
“As Aussies remain committed to keeping grocery costs in check, private label brands are demonstrating how innovation and value alignment can drive consumer loyalty,” says Brendan Straw, ShopFully 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 are appealing to the health-minded, with more than two in five (43%) Australians saying they could gravitate towards store-brand options that feature clear ingredients and nutritional labelling, while 30% say they might be drawn to those offering organic or healthier choices. Ethical or sustainable practices may further drive these preferences, with 26% of Australians prioritising these values in their purchasing decisions.
Convenience may also be a factor, with nearly a quarter (23%) 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, are more likely to agree they could be encouraged to purchase private label products if they cost less (77% respectively, compared to Gen Z (56%) and Millennials (59%) or if the quality matches well-known brands (68% and 71% respectively) – compared to Gen Z (55%) and Millennials (55%).
Whereas Gen Z (32%), are much more likely to be influenced by factors like appealing packaging, in contrast to Gen X (19%) and Baby Boomers (10%).
“Brands that listen to their target customers’ priorities will find the most success. Whether it’s focusing on sustainability or producing plant-based or ‘free-from’ alternatives to attract younger consumers, or prioritising affordability and innovation to keep costs low for older generations,” said Mr Straw.
Essential grocery shopping behaviours
Routine household purchases such as eggs, milk and bread are also being reconsidered by many Australian grocery shoppers, with over three in five (62%) considering cost when selecting these items. This is even greater when it comes to more nutritional items such as fruit and vegetables, with almost seven in ten Aussie grocery shoppers (68%) purchasing produce based on the most competitive price.
Still, the data reveals Australians are mindful grocery shoppers, with a third (34%) motivated by sustainability when purchasing food staples. Generationally, Millennials are leading this trend, most interested in sustainably sourced staples (49%), followed by Gen Z (41%). However, this is less of a priority for the older generations, such as Gen X (24%) and Baby Boomers (25%).
“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,” Mr Straw said.
Health and dietary shopping behaviours
While many Australian grocery shoppers embrace a more holistic lifestyle, we know finances remain a high priority, with more than a third (36%) purchasing fewer dietary-specific foods (e.g. plant-based or ‘free-from’ products) due to cost.
Interestingly, however, the data reveals a growing community of dietary-specific consumers, with 35% of Australian grocery shoppers selecting food staples based on dietary preferences, such as gluten- or lactose-free alternatives. This is most seen with Millennials, with an impressive 50% purchasing staples based on dietary motives. Overall, younger Australian grocery shoppers, such as Millennials (40%) and Gen Z (35%) are most likely to opt for alternative options like plant-based and ‘free-from’ products.
Households with children under 18 are behaving especially cost-conscious, often purchasing fewer dietary-specific items due to price. Yet, parents are more likely to choose alternative products for dietary needs – likely to accommodate their children – with 38% doing so compared to 20% of households without children.
“For existing retailers, this trend presents a golden opportunity to capture consumer loyalty by emphasising attributes like 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,” Mr Straw said.
