Australia’s most economical state has been identified, with recent analysis from Compare the Market highlighting a growing trend among consumers turning away from brand-name products. Leading the way is Victoria, where 53 per cent of shoppers have opted for generic brands over the past year to reduce expenses.
Following Victoria are Queensland and Western Australia, both at 48 per cent, New South Wales at 47 per cent, and South Australia at 46 per cent. While the national average of shoppers transitioning to generic brands sits at 49 per cent, the move appears to be fruitful. According to Compare the Market, consumers could potentially save up to 41 per cent by choosing generic over name brands.
Chris Ford from Compare the Market pointed out that families have faced significant challenges due to soaring supermarket prices. He observed that many Australians are now prioritising cost savings over brand loyalty, marking a notable shift in shopping behaviour. Current figures reveal that the average Australian household spends $213.64 weekly on groceries, up 11.5 per cent or an additional $21.98 compared to January 2024. Over a year, this amounts to a staggering rise of $1,142.96 in grocery costs alone.
The data highlights that brand-name products, particularly essentials, have seen substantial rejection rates. For example, 65 per cent of shoppers are now avoiding brand-name milk, while 58 per cent have turned away from branded cleaning supplies, 57 per cent from bread, 52 per cent from frozen vegetables, and 50 per cent from toilet paper. Ford noted that these everyday items are vital for households, making the push towards generic brands a sensible money-saving strategy.
Savings from switching to generics can be quite significant. Analysis shows that opting for a budget-friendly multipurpose cleaner could lead to savings of 50 per cent, switching to home brand bread might save 38 per cent, and choosing generic milk could create a 27 per cent price gap compared to their branded counterparts. Among other products, 18 per cent of Australians are now purchasing generic confectionery, 23 per cent have shifted to home brand biscuits and snacks, while 31 per cent are favouring cheaper options for toiletries like toothpaste and soap.
Further research into 13 common grocery items revealed that consumers could save as much as 41 per cent—equivalent to $32.80—by selecting generic brands instead of name brands. The total expenditure appears dramatically lower for generic items, with the cost for name brand products averaging $79.15 versus $46.35 for the generics. Notably, in some cases, such as Earl Grey teabags, the price discrepancy reached 63 per cent.
Overall, the findings indicate that significant savings can be realised across various supermarket aisles through the decision to switch to a more economical choice of products.