Supermarket trends: Home brand products growing in popularity as cost of living bites

Home brand products are “closing the trust gap” in the supermarket aisle, with a new survey revealing Australian shoppers are questioning branded food prices.

A joint report from Shop! ANZ and Vypr found that household or own-brand items are becoming a regular part of the weekly shop as consumers are less willing to pay for just one brand.

Shoppers are most likely to purchase household branded household items, followed by pantry and dairy products. Value for money and low prices were the biggest motivators for nearly 60 percent of survey respondents.

45 per cent of consumers are now more confident in purchasing house brand products than they were 12 months ago. Shopping centre! ANZ Managing Director Carla Bridge said branded products were still gaining traction in categories such as snacking, health and beauty.

“Australian customers aren’t moving away from branded products, but they want more from them,” he said.

“Gone are the days of assuming brand loyalty will move a product from shelf to cart. Consumers weigh price, quality, trust and category fit at the point of purchase and are increasingly prepared to switch if the premium offering is not clear.”

“This creates a more competitive shopping environment for both retailers and suppliers.”

Vypr chief revenue officer Sam Gilding said shoppers are making more complex calculations.

“The challenge is that shoppers make these decisions quickly and often in the aisle. A brand name may get a product noticed, but it no longer guarantees a sale,” he said.