AUSTRALIAN DEMAND FOR INTERNATIONAL BRANDS IS HIGH, SUGAR IS IN DECLINE, VEGAN IS VERY MUCH IN THE SPOTLIGHT AND THERE’S A FRENZY FOR NATURAL FOOD, WHICH YOU MAY HAVE READ HERE. BUT THIS ISN’T WHERE THE AUSTRALIAN TRENDS STOP.
Australian consumers are increasingly becoming more health conscious, which is driving the growth of segments such as healthy snacks, active nutrition and natural beauty.
HEALTHY SNACK SALES ARE HIGH
Australian consumers love to snack and among their favourites are chocolates, cookies/biscuits, crackers/crispbreads and nuts/seeds.
What’s interesting is they’re swaying from traditionally sugar-filled snacks and looking for specific health attributes. Snack foods that contain no artificial colours or flavours are important to 63% of Australian consumers, those low in fat are important for 55% and 30% favour snacks that are gluten free.
The switch to healthier choices is clear. In Asia-Pacific, snacks that fall into the healthy category are growing at a rate of 15%, while indulgent snacks have grown by 5%, which is only a third of the healthy growth rate.
Preferences lie with snacks that are all natural, made from fruits/vegetables and are organic. Sales of products with natural and organic attributes have grown by 24% and 28%, respectively, over 2015 and 2016.
Consumers are swaying away from diet/light products because they’re often sweetened artificially, with sales declining 12%. Australians want transparent, natural products. This has been a driver behind the 186% sales growth that products naturally sweetened with stevia have experienced.
ACTIVE NUTRITION IS CERTAINLY ACTIVE
Sports nutrition is to see the fastest growth of all customer health categories, growing at approximately 10% annually.
Those consuming active nutrition products has expanded beyond gym fanatics, which is seen to be pushing the segment growth.
Australian’s spend $8.5 billion yearly on the latest fitness trends. With lines blurring between snacks and fitness nutrition, retailers have the opportunity to merchandise this segment across two categories.
The demand for natural ingredients in beauty products is increasing as consumers start to question their contents. There’s also been an increase in interest in products that feature active ingredients and those suitable for sensitive skin.
Natural formulations have become central to the facial skincare and anti-aging market in particular and fusion and eco-friendly lines are also stimulating demand.
What consumers are particularly interested in are products with vitamin C (85%), fruit based ingredients (78%), oatmeal (78%) and honey (76%).
Interestingly from all the products available in the beauty segment, cleansers are currently the fastest growing in the market, increasing sales 4.6%, reaching $1.8 billion in 2016.
KEY INGREDIENTS TRENDING
If products you sell contain these ingredients, call it out to help encourage your customers past purchase intent and into a sale.
While some movements seem to have broken past the trend stage and settled, the industry will continue to constantly evolve. Being proactive with checking trends and demands is always the best way to keep your customers happy. To save you time, contact us and the Unique Health Products team will help you stay on top of trends and select the right products for your retail environment.
You’re an international brand and see potential to break into the Australian market? Visit our international exporters page.
Read Big Australian Trends – Part One here for more top-selling segments in the market.
Source: Nielson, 2016; Euromonitor, 2016; Mintel, 2016.