More supermarket shoppers trading up to premium groceries

THE groceries Australians are most willing to pay top dollar for have been revealed in a consumer survey, with more shoppers trading up to “premium” dinners, ice creams, teas and coffees.

Cornfoot sistersEmily 13, Zoe 9 and Georgia 11 enjoy expensive icecream. Picture: Kylie Else

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SUPERMARKET shoppers are trading up to “premium” dinners, ice creams, teas and coffees.

The types of groceries Australians are most likely to pay top dollar for have been revealed in a consumer survey.

Meat and seafood are the top choice, followed by coffee and tea, dairy, hair care and eggs.

Up to one-third of shoppers said they’d consider adding premium products from key categories to their baskets, the Nielsen research found.

Many are driven by environmentally friendly, organic, all-natural or socially responsible claims.

Some also seek out higher price tags to feel good about themselves or show off their success and “good taste” to others.

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Sisters Emily, 13, Zoe, 9 and Georgia, 11 enjoy ice cream. Picture: Kylie Else

Nielsen retail director Juliane Westaway said the emerging premium grocery trend was across-the-board and not confined to wealthier customers.

Even supermarket private labels had got in on the act, with Coles and Woolworths adding lines of indulgent house brand ice creams, for example.

While budgeting remained a key concern, families that pared back in other areas of life could afford to add some luxurious treats to trolleys.

“Households have cut back in terms of eating out and entertainment,” Ms Westaway said.

“With the trend towards more indulgent ice cream you are bringing out-of-home consumption into the home and it doesn’t break the bank.”

Growing numbers were attracted to pricier black teas, herbal teas and infusions with health and wellness benefits, and fair trade coffee with “social responsibility” credentials.

Fair trade coffee is growing in popularity with shoppers. Picture: Supplied

‘Natural’ shampoos with botanical ingredients were also popular.

“There’s rational reasons to buy premium and an emotive side. For thirty-five per cent it makes them feel good ... it’s self-esteem.”

Nielsen defines premium products as costing at least 20 per cent more than the average price for the category.

Ms Westaway said premium black tea cost as much as double that of a standard tea bag. Yet sales volumes had grown 3 per cent across three years.

Premium ice cream had seen 9.5 per cent sales value growth over three years while other types of ice cream were in slight decline.

Chilled premium pet food was also performing particularly strongly.

The Nielsen research polled 500 Australians as part of a global study.

TRADING UP

Meat/seafood 30%

Coffee and tea 28%

Dairy products 23%

Hair care 19%

Eggs 19%

Source: Nielsen. Percentage of consumers that would consider buying a premium offering.

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@KarenCollierHS