Australia’s rising cost of living is impacting consumer behaviour, according to Toluna’s Global Consumer Barometer Study.
The key findings show that Australia’s rising cost of living is impacting consumer spending. The increased cost of groceries is causing the most disruption, with 80 per cent of Australians stating they’re being impacted by the rising cost of grocery items.
With the cost of living expected to remain high, 50 per cent of Australians expect to be spending more on groceries for the next three months.
This is forcing shoppers to make changes to their weekly shop, including dropping their favourite brands in favour of generic ones, shopping around to find the best deals, and buying in bulk to save money.
Reducing social activities such as eating out, as well as finding ways to reduce energy consumption, are some of the other ways Aussie households will be trying to cut back on spending.
Aussie shoppers have particularly noticed the rising cost of fresh food (79 per cent), as well as frozen food (62 per cent), tea and coffee (62 per cent), dry pantry food such as biscuits, pasta, etc. (60 per cent), household cleaning items (59 per cent), bakery goods (59 per cent), health and beauty products (52 per cent), soft drinks (48 per cent), pet care (46 per cent), and alcohol (43 per cent).
Over coming months, Australian shoppers plan to change their shopping behaviours to help combat grocery price hikes, such as changing the brands they normally buy (29 per cent), buying more generic brands (28 per cent) and shopping around in search of value (27 per cent).
When it comes to purchasing decisions at the supermarket, price is by far the most important factor for most Australian shoppers (72 per cent), followed by quality (68 per cent) and health (62 per cent), with brand loyalty nearing the bottom of the list.
Sej Patel, Country Director, Toluna, Australia and New Zealand, said the rising cost of living is now one of the biggest issues for Australians.
“Understanding today’s consumer is critical, and businesses will do well to ensure that communication with customers over the coming months largely focuses on price and value for money. It’s important that businesses evolve the way they position and market themselves in a way that aligns with current consumer sentiment.”
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