The Product of the Year Awards is now in its 14th year in Australia. For 2023, the leading number of Product of the Year category awards were taken out by supermarket chains Coles and Woolworths for their home-brand, deli and bakery products.
Coles had 11 award wins, and Woolworths took home five of the 33 winning product gongs. With Australian consumers feeling the pinch of the rising cost of living more so than ever, research by NielsenIQ research shows a trickle-down effect occurring, with many consumers switching to lower-cost items and cheaper alternatives.
NielsenIQ found that 84 per cent of shoppers are employing cost-saving techniques with their weekly shop, with one in two shoppers (50 per cent) admitting they have had to switch to low cost or home brand options in order to save money; 42 per cent claiming they have to switch to more affordable fresh food/cuts of meat, and 37 per cent just generally opting to buy less than they usually do.
POY director, Sarah Connelly said that only a third of Australians reported that they cut back on splurge-like expenses such as dinners and food delivery, instead opting to switch to cheaper brands, buy less groceries or reject their favourite brands altogether. After extended COVID-19 lockdowns, you can tell that people are much more willing to sacrifice their household goods if it means getting the opportunity to go out, socialise and enjoy all the things they’ve missed on in recent years.
“The rising cost of living has definitely changed the FMCG landscape, with affordability now the most important consideration for Aussies making their weekly grocery trip. Typically, during a recession, you will see many people cut back on holidays and indulgent expenses like eating out, but interestingly, the data indicates something else is happening entirely.
“In addition, the POY winner’s trends are also showing that health and wellbeing is still at the forefront of minds post COVID-19, with 10 of the 33 winners sitting within the health, pharmacy and cleanliness categories including products from Hydralyte, Voltaren, BioSLIM and Inner Health.”
The NielsenIQ research also uncovered that the post-pandemic trend is in favour of supporting local, with a third (32 per cent) of shoppers preferring to go to retailers that support Australian brands. Shoppers also gave Woolworths the nod as the leading retailer with the best selection of fresh, healthy, and organic products.
This year, POY welcomed some household brands back into the winner’s pool, including Birds Eye, Colgate, Lyre’s and Moccona. In addition, first-time winners including Rokeby Farms’ environmentally friendly ‘ReMilk,’ Roll’d Vietnamese Sauces, and The Comfort Mattress from The Emma Sleep Company made the list.
Key findings
- The average Australian household spends around $200 per week on groceries, with more affluent households able to spend more;
- price/affordability is the key decision factor for over 86 per cent of Australians when deciding to buy a new brand or product;
- the change in flexible/hybrid lifestyles has seen the household shopping responsibilities change for over 2 in 5 Australians – now held by middle-aged males, more so than ever;
- over a quarter (27 per cent) of those doing more of their households shopping claim they have had to take over as they are more
- financially responsible and therefore can help their household save money; and
- Woolworths is Australia’s preferred retailer across a range of criteria including:
- biggest range of healthy and organic products (41 per cent);
- best range of fresh products (40 per cent); cleanliness (39 per cent); and
- best shopping experience (38 per cent).
