Research from tech company Shopfully reveals an opportunity for major retailers to make local and sustainable products part of the everyday grocery shop.

According to a YouGov study, commissioned by Shopfully, shoppers in Australia are particularly conscious of where their everyday purchases come from, how they are produced and the impact they have on local communities and the environment.

The study found almost half of Australians (49%) consider buying local and supporting local suppliers or small businesses to be important when grocery shopping. However, price, convenience and product availability continue to play a significant role in purchasing decisions.

Brendan Straw, Country Manager at Shopfully Australia, says the results suggest shoppers are looking for more opportunities to make responsible choices where they already shop.

“Australians clearly have a strong affinity with local producers and small businesses, but conscious consumption still needs to work within the realities of everyday life,” Mr Straw said.

“Shoppers aren’t necessarily looking to abandon the convenience of their local supermarket. Instead, they want more opportunities to choose local and sustainable products in the places they already shop. And larger retailers have the resources needed to accommodate this.”

Local matters

One in five shoppers (21%) said buying local is very important and that they always prioritise local products because they believe they are fresher or of higher quality. And a further 29% said they would choose local products when they were easy to find and competitively priced. Similarly, the data reveals 24% of shoppers buy groceries from farmers’ markets or local markets – most common among Australians aged 25 to 34. 

“While farmers’ markets will continue to play an important role in connecting communities with local producers, shoppers shouldn’t have to visit a separate destination to find products that reflect their values,” Mr Straw said. 

“Large grocery retailers have the reach, scale and existing customer relationships to bring more of these choices into the mainstream. By placing carefully selected local and sustainable products alongside familiar national brands, retailers can give shoppers greater choice without adding complexity to their routines.” 

Retailers can expand the definition of the everyday grocery shop by integrating more local and sustainable options across a wider range of categories. From locally grown produce, Australian-made pantry staples and organic products to shampoo bars, refillable household items and lower-impact cleaning products. 

“A shopper who currently visits a market or specialist store to purchase local honey, handmade soap or environmentally conscious cleaning products may be willing to purchase those items during their regular supermarket visit when the quality, provenance and value are clear,” said Straw. 

Affordability and visibility are key

While the research demonstrates strong interest in buying local, it also shows that affordability remainskey to the final purchasing decision.Many Australians said they would choose local products when they were competitively priced and convenient, indicating that even shoppers with strong intentions may struggle to justify paying a significant premium. 

“Retailers need to consider how promotions, loyalty incentives and introductory offers can make local, sustainable and ethically sourced products easier to trial. Temporary price reductions, multibuy offers and loyalty rewards could help lower the barrier for shoppers purchasing a product for the first time,” Mr Shaw said.  

Along with availability, retailers need to make these products visible while shoppers are planning their purchases.  

“Catalogues, for instance, can introduce customers to locally made products, seasonal Australian produce and lower-waste household alternatives before they enter a store. While digital channels can build on this by sharing the product credentials,” he said.

Shopfully believes grocery retailers have an opportunity to reduce the perceived trade-off between shopping conveniently and shopping consciously.  By expanding product ranges, supporting nearby suppliers, using promotions to encourage trial and communicating product availability across catalogues and digital channels, retailers can make local and sustainable products a more regular part of the Australian grocery shop.