Shoppers turn to own-brand goods

Sales of supermarkets’ own-brand products are booming as Australians overhaul their shopping habits. So why are we ditching the big name brands?

Australians are overhauling their shopping habits to deal with cost-of-living pressures.

Sales of “private label” groceries, which are supermarket owned and generally cheaper, are rapidly rising as customers seek out value for money.

Nielsen data reveals prepacked cakes, cheese, sugar and sugar alternatives, bottled water and dried fruit and nuts are the most popular supermarket own-brand buys by dollar value.

Total private-label grocery sales were growing more than four times faster than that of branded products.

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Examples of private labels were Woolworths Essential, Coles brand, and Aldi’s Just Organic, it said.

“High-affluence” customers, not just those on lower incomes, were among those switching some of their spending.

But the market research company also highlighted premium groceries such as meat and seafood, coffee and tea, alcohol, dairy foods and hair care as areas ripe for growth.

“There is consumer demand for premium items that allows them to save on out-of home expenses such as dining out, takeaway coffees, on-premises drinking and professional hair treatments,” Nielsen retail executive director Alfredo Costa said.

He said managing the household budget was a focus for many people.

“A variety of factors have contributed to the slowly eroding financial status of many Australian consumers,” he said.

Dominique Aprea, with children Mitchell and Nicholas, buys supermarkets’ own brands to try to save money. Picture: Tony Gough

These included a decade of government volatility, stagnant wage growth and falling house prices.

“Add to this our consistent concerns around rising gas and electricity bills and the cost of fuel (and) it’s no surprise that consumers are actively seeking ways to save money on everyday expenses,” Mr Costra said.

Dominique Aprea said she was conscious about cutting costs, including groceries.

“These days some of the supermarkets’ own brands are comparable or better quality. I buy a lot of them for things like baking items, oils, spices, milk and nappies,” Ms Aprea said.

The latest Conference Board global consumer confidence survey found more than half of Australians (54 per cent) said they had changed their spending to save on household expenses.

More than two in five of those shoppers indicated that they would switch to cheaper groceries.

Cost of living is the number one issue for Australians ahead of the federal election, a YouGov Galaxy poll conducted for the Herald Sun has revealed.

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@KarenCollierHS