WHAT ARE THE AUSTRALIAN TRENDS? DO AUSTRALIAN CONSUMERS WANT BIG INTERNATIONAL BRANDS? AND WHY ARE THEY BUYING WHAT THEY DO?
As a retailer you find yourself asking these questions each time a brand is launched. Is it worth stocking? Will it be a success on your shelves or a dead dog?
To save you the stress, we’ve done the digging. Below we reveal the current Australian trends and give you the stats on where sales are booming.
Australian demand for international brands
A recent research study revealed that while Australians want local brands to do well, they favour imported, international brands. Why? They trust them. This is because they’ve earned the loyalty of many others internationally, which consumers understand is a difficult thing to do. In the same study, 26% agreed that they don’t prefer to buy local brands over large global brands.
Sugar is in decline
While the white granules were once a pantry staple, sugar is now considered a huge no-no and there’s no sign of this Australian trend slowing down. Currently almost a quarter (24%) of Australian consumers follow a diet that limits the consumption of sugar. On top of this, 44% say they avoid sugar as an ingredient. This figure is 10% higher than the global average of 34%.
High profile Australian influencers of the anti-sugar movement David Gillespie and Sarah Wilson are leading consumers to recognise that sugar is harmful to their health and that of their family. A majority (56%) choose not to buy sugar or high sugar products and more than a third (36%) of Australian consumers say they wish there were more sugar free products on the shelves.
With customers switching to healthier alternatives, you can also expect more growth in the premium sugar segment (coconut sugar, cane sugar, palm sugar etc.) which has recently recorded 35.1% sales growth.
Vegan is very much in the spotlight
Aussies’ hunger for vegan friendly products is already strong and is predicted to keep growing. By 2020 the category’s value is predicted
to reach $215 million!
Natural Food Frenzy
Australian consumers are focusing on simple ingredients and adopting a back-to-basics mindset. Their priority is on products that contain fewer artificial and non-processed ingredients.
These ingredients are being avoided because of the perceived impact they have on health. While artificial ingredients sales suffer, food that’s simple and transparent, whilst having an impressive nutrition profile is what Australians want. Many even prioritise natural, nutritious ingredients over brands.
Global sales of healthy food products
will reach AUD$1.3 trillion this year.
On top of wanting healthier choices, 88% are willing to pay extra for healthy food products. This is true from Generation Z to Baby Boomers.
Functional foods that can promote good health also are desirable. These include foods high in fibre (36%), protein (32%), whole-grains (30%) or fortified with calcium (30%), vitamins (30%) or minerals (29%).
For more information on big Australian trends, read Big Australian Trends – Part Two.
If you need help choosing the right international and local products for your retail environment, all you need to do is contact us.
Or if you’re an international brand that want’s to break in and excel in the Australian market, visit our international exporters page.
Sources: Nielsen, 2016; Euromonitor, 2016.