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 finding Australian customers are questioning the price of branded groceries.

A joint report from Shop! ANZ and Vypr found home or own brand items had become a regular part of the weekly shop, as consumers were less willing to pay for a brand name alone.

Shoppers were most comfortable buying home brand household essentials, followed by pantry staples and dairy. Value for money and lower prices were the biggest motivators for about 60 per cent of those surveyed.

And 45 per cent of consumers were more confident buying home brand products now than they were 12 months ago. Shop! ANZ General Manager Carla Bridge said branded products still appealed in categories such as snacks, health and beauty.

“Australian shoppers are not walking away from branded products, but they’re asking more of them,” she said.

“The days of assuming brand loyalty will carry a product from the shelf to basket are over. Consumers are weighing up price, quality, trust and category relevance at the point of purchase, and if the premium offering is not clear, they are increasingly prepared to switch.

“This is creating a more competitive grocery environment for both retailers and suppliers.”

Vypr chief revenue officer Sam Gilding said shoppers were making more sophisticated calculations.

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