New research commissioned by ShopFully has revealed that 95% of Australians are open to purchasing private-label products, with cost being the primary factor for 68% of respondents.

The study, which was conducted by YouGov, highlights that 63% of consumers are influenced by the perception of quality, while 43% consider taste when evaluating private-label offerings.

The survey was conducted online between 25 and 27 November 2024 and included a nationally representative sample of 1,007 Australians aged 18 and older. It indicates a significant interest in private-label brands among health-focused consumers, with 43% seeking clear ingredient labelling and 30% looking for organic or 'healthier' options.

Generational differences are evident in the findings. Millennials are more inclined to choose staples based on dietary needs and eco-conscious purchases. In contrast, Gen X and Baby Boomers place greater emphasis on cost and quality. The research shows that 23% of consumers might be encouraged to purchase private-label brands if they simplify the decision-making process.

Older generations, such as Gen X and Baby Boomers, are more likely to be influenced by cost and quality compared to Gen Z and Millennials. Gen Z, however, is more swayed by appealing packaging than older generations.

Cost remains a critical consideration for Australians when purchasing routine household items. The study notes that 62% of Australians consider cost when buying essentials like eggs, milk, and bread, and 68% do so for fruits and vegetables. Sustainability also plays a role, with 34% of Australians motivated by this factor when purchasing food staples. Millennials lead this trend at 49%.

The research further indicates that 36% of Australians are purchasing fewer dietary-specific foods due to cost, but 35% select food staples based on dietary preferences. Among Millennials, 50% purchase staples based on dietary motives, and younger shoppers are more likely to opt for plant-based and 'free-from' products.

Households with children under 18 are noted to be more cost-conscious but also more likely to choose alternative products for dietary needs.

ShopFully’s Country Manager for Australia, Brendan Straw, said: "As Aussies remain committed to keeping grocery costs in check, private-label brands are demonstrating how innovation and value alignment can drive consumer loyalty.

"Competitor brands can learn from this success by focusing on affordability, keeping costs low without compromising quality. Brands could look towards offering extended promotions and incentives as one way to re-engage consumers."

He added, "Brands that listen to their target customers’ priorities will find the most success. Whether it’s focusing on sustainability or producing plant-based or ‘free-from’ alternatives to attract younger consumers, or prioritising affordability and innovation to keep costs low for older generations."

Straw also noted, "Essential grocery items like milk, bread, and fresh produce are at the heart of every household’s shopping list, so it’s no surprise that cost has become a critical factor in these decisions, especially as living expenses remain high. Yet, Aussies won’t waver on quality, putting pressure on retailers to offer competitive prices and value-driven options."

He concluded, "For existing retailers, this trend presents a golden opportunity to capture consumer loyalty by emphasising attributes like transparency, sustainability, and value-based offers. Retailers can also find success by addressing the preferences of the rapidly growing dietary and health-conscious consumer base, securing a competitive edge and fostering long-term customer relationships."