The rising cost of living in Australia is causing a major shift in consumer shopping habits, according to the latest research from the Product of the Year Awards (POY), with more shoppers opting for home-brand products and cutting back on small indulgences like snacks and premium desserts.
NielsenIQ research conducted for Product of the Year found that 86 per cent of shoppers use cost-saving techniques in their weekly budget, with three out of five “snackrificing” foods like chocolates, snacks, and desserts to cut costs.
While Aussies are cutting back on these indulgences, half (48 per cent) believe workplaces should purchase snacks for staff, with 90 per cent of young working professionals considering this mandatory as bosses look to keep morale up.
Other cost-saving measures reported also included switching to cheaper cuts of meat (42 per cent), cutting back on food delivery (40 per cent), consuming more home-cooked meals (40 per cent) and reducing waste by eating leftovers (38 per cent)
Sarah Connelly, director of POY, said the rising cost of living has “definitely changed” the FMCG landscape, with affordability and ease as the leading driver behind how consumers shop.
“The Nielsen findings highlight how Australian consumption habits have shifted considerably, with the cost-of-living crisis echoing through many households,” said Connelly.
“While snacks and treats were commonplace in the shopping trolley before living expenses started to increase exponentially, these are now classed as luxury items rather than a need, with many shoppers viewing snacks as a low priority when it comes to feeding the family.”
Now in its 15th year, the leading category award winners were supermarket chains Coles and Woolworths for their home brand, deli and bakery products. Coles took 19 of the 44 award wins and Woolworths with 10.
Click here to see the full list of this year’s winners.