Essentials remain strongly positioned within consumers
The FMCG sector remains a resilient stronghold for consumer spending. While consumers expect to cutback spending on categories like dining out and leisure, spending intentions for groceries and household items remain in positive territory.
This indicates a more home-centric behaviour, as consumers replace out-of-home occasions with in-home experiences. Our NIQ Full View of the market, including data on Tech & Durables (-2.3% Value sales), On-premise channels (20% of consumers visiting less frequently) and in-home consumption for Liquor (3.5% value growth), revealing a clear preference for value-driven home-based consumptions.
Products offering affordable premiumisation are well positioned within consumers and facing solid growth. This trend is evident across several categories:
Scotch Fillet: +19.2% value growth. Premium steak cuts becoming more affordable offering an alternative for an out-of-home meal.
Roast and Ground Coffee: +12.5% value growth. High-quality coffee at a cheaper price per cup than capsules.
Beer/Cider: +9.7% value growth. Consumers are bringing social occasions to their homes and drinking more at home.
Tech & Durables value sales
of consumers visiting on-premise channels less frequently
value growth in in-home consumption for liquor
As people are now going out for a drink less often, we have Liquor categories performing well off-premise, most of them driven by a higher number of occasions, which clearly shows that consumers are replacing an occasion where they would normally go out for a drink to drinking at home with their friends or family.
Looking at a macro view, Private Label share in Australia is 24% which is aligned with the global average, but behind other developed countries that we usually benchmark ourselves with, such as the UK.
