The State of Australian Consumer
This sustained pressure comes from multiple areas. After enduring and surviving years of past disruption, consumers are increasingly resilient, future-focused, and searching for better days ahead. Fragility remains a common factor surrounding any signs of optimism. With the looming prospect of further disruption down the road, consumers remain cautious with all forms of spending, signalling a year of new habit formation and future-focused planning.
The top four concerns among Australians remain the same: They continue to worry about the rising cost of food, the increasing cost of utilities, the increased cost of housing, and the rising interest rates. Concern over rising fuel/transportation costs jumped to rank #5 from #6. Concern over global conflict/escalation of crisis moved up by four spots to rank #8.
Straightened circumstances and the lingering effects of Covid appear to have nudged Australians in a more frugal, health-conscious and green direction, with 51% wanting to spend more time at home, 50% wanting to buy only what they’ll use, 48% preparing a shopping list before going to the store and 41% stating that building, maintaining or improving health and wellness is important.
Recent consumer insights from NIQ paint a picture of a cautious yet optimistic Australian market. While a majority of households (80%) remain vigilant about their spending, consumers have a growing sense of optimism, suggesting a potential shift in sentiment. This resilience amidst economic uncertainty signals an opportunity for adaptable brands and retailers to cater to evolving consumer needs and preferences.
As inequality is rising and the cost-of-living crisis tend to impact people in different ways, we have segmented consumers in terms of how much they have been feeling the impact and their attitudes.
Australian households are continuing to monitor their spending.
Consumers have been tested in more ways than one over the past year and beyond.
Emerging through change as consumers shift survival tactics into long-term behavioural shifts.
Continued polarisation between the financially insulated and insecure and a renewed focus on planning for proactive health & retirement.
Australian households are doing ok.
