Rising daily costs may have reignited a newfound fondness for private-label grocery brands, according to new research.
Recent research conducted by YouGov and commissioned by ShopFully reveals that an overwhelming 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,” said Brendan Straw, ShopFully’s 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.”
Private label appeal
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.