Consumers buying premium during their grocery shop

One in three consumers in Australia would consider spending more on a premium offering in key grocery categories, recent Nielsen research has shown.

Nielsen Scantrack data highlights that consumers are trading up everyday products in their shopping trolleys – meat and seafood are the top choices when considering a higher price tag, while tea and coffee come in second, with one in four Pacific consumers treating themselves to a premium beverage.

“A premium product is one that costs at least 20 per cent more than the average price for the category,” Nielsen Director Julianne Westaway said.

Dairy products were also revealed as the third category where consumers are willing to pay more. Ice-cream was the most popular item in the category, driven by ‘indulgent’ flavours.

“Pacific shoppers are socially conscious when it comes to top-tier goods, with more than two in three spending more on products that contain environmentally friendly or sustainable materials,” Ms Westaway said. “They are also choosing products that are organic or have all-natural ingredients.”

Three in five consumers showed a willingness to pay more for products that deliver on social-responsibility claims.

“‘Green’ attributes justify a higher price tag in many consumers’ minds and they show a willingness to pay for them,” Ms Westaway said.

Marketers can capitalise on this premium trend and brands can drive growth in their premium offerings, or support a higher price point, by tapping into Fair Trade and responsible-practice certifications.

“Premium products should be activated in a way that amplifies the product’s unique proposition,” Ms Westaway said. “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.”