Unprecedented choice is transforming the way Australians shop for groceries, here are the top 5 Australian grocery shopping trends affecting how Australians get their groceries that FMCG suppliers must be aware of.

Australian grocery shopping trend #1 – The Rise and Rise of Private Label Products

Gone are the days when home and private labels were snubbed by the Aussie shopper. Today, dollar-conscious shoppers are increasingly guided by price. Aldi’s competitive advantage is its ability to save its customers on their shopping bills, with its private label product ranges selling at a price point around 25-30 per cent cheaper than the Woolworth’s and Coles private label ranges.

Aldi has legitimised private label products and forced the established supermarkets to lift their game or get left behind. Coles, Woolworth’s and IGA have been left with little choice but to drop prices in order to limit market losses to Aldi. Private label has become a huge Australian grocery shopping trend.

Australian grocery shopping trend #2 – Shopping online

A recent industry report revealed Australians have been slow in the uptake of online grocery delivery but indications suggest the market is underdeveloped. Growth of 14% a year is anticipated for the next five years[1] and competition is hotting up.

Online platform Australian Farmers Direct has started offering a full supermarket range to its customers for the first time since in its 11 year history. While ShopWings merger with Grocery Butler positions itself as a dynamic competitor to the supermarket giants offering a personal shopper service and same day delivery[2]. In response, Coles and Woolworth’s have relaunched competitive delivery pricing in a bid to retain their customer base.

Australian grocery shopping trend #3 – Buying Fresh

Consumers are focusing on freshness and preferring to purchase and consume perishable products on the same day. As online shopping takes care of bulky, non-perishable items, shoppers are heading into their supermarkets more often than ever before.

Fresh food retailer Harris Farms is tapping into the changing behaviour as the grocery trip becomes a food experience more than a household chore. Offering shoppers the opportunity to explore product ranges, recipe ideas and experiment with their culinary habits.

Australian grocery shopping trend #4 – A Foodie Nation

Another Australian grocery shopping trend has emerged with the birth of Australia as a nation of foodies. This is thanks in part to wildly popular shows, such as My Kitchen Rules and Master-chef, which have renewed Aussies love affair with home cooking. The ‘Master-chef effect’ is reported to have lead a 1400% increase in the sales of ‘unusual’ ingredients in Coles alone.

The expanding palate of Aussie shoppers is driving growth of premium supermarkets and delis, such as Gum Tree Good Food and Thomas Dux, who are positioning as the go to for high quality and exotic products.

Australian grocery shopping trend #5 – Conceptual Convenience

From a morning coffee to a quick stop for lunch, or perhaps a mobile phone contract, Woolworth’s and Coles are making the most of their significant retail footprint by luring customers into stores with services such as cafes, sushi bars, even mobile phones.

As consumers search for quality at competitive pricing, expect Woolworth’s and Coles to increase their range of convenience offerings in a bid to be a one-stop shop for customers.

 

 

[1] http://www.afr.com/technology/shopwings-aims-to-make-a-fortune-by-doing-your-grocery-shopping-20150319-1m2y9t#ixzz4KoEtfj2b

[2] http://www.smartcompany.com.au/growth/68955-why-two-aussie-startup-competitors-are-joining-forces-to-conquer-the-online-delivery-market/