A recent survey of more than 100,000 Australians by Toluna has shown that consumers are planning to tighten up on spending as costs of living continue to rise.
Toluna’s Global Consumer Barometer Study is a regular index that uses a community panel of over 40 million members to provide accurate and timely information on the world’s current perceptions.
The latest report shows that Australia’s rising cost of living, particularly the cost of groceries, is impacting consumer spending and forcing Aussie shoppers to make changes to their shopping habits.
Almost two thirds of Australians said the way they spend their money has been impacted, and 80 per cent stated they’re being impacted by the rising cost of grocery items in particular.
Some of the particular costs identified include fresh food (79 per cent), frozen food (62 per cent), tea and coffee (62 per cent) and dry pantry food such as biscuits and pasta (60 per cent).
With the cost of living expected to remain high, 50 per cent of Australians expect to be spending more on groceries for the next three months.
In addition to groceries, Asutralians are being impacted by price changes in areas such as eating out (54 per cent), ordering takeaway (50 per cent), buying clothes (53 per cent) and beauty and skincare products (48 per cent).
When it comes to budgeting, Aussies say they would be happiest to forego eating out and ordering takeaway, overseas travel, and going to bars, pubs and cinemas.
In comparison, around a third of respondents said they were unlikely to give up mobile phone contracts, and TV subscriptions seem similarly unlikely to go.
“As we emerge from the pandemic, the rising cost of living is now one of the biggest issues for Australians. Our research shows that Aussies are noticing price increases across a number of categories, and are changing their behaviours as way of trying to combat this,” said Sej Patel, country director of Toluna, Australia & New Zealand.
“Brand switching and shopping around to find better deals are some of the key tactics shoppers are using to save money, with price being the absolute number one factor when it comes to making grocery purchasing decisions right now. Price changes are also impacting consumers’ plans when it comes to eating out and socialising with friends, right down to being conscious about shower timings and making sure all lights are switched off.
“Understanding today’s consumer is critical, and businesses will do well to ensure that communication with customers over the coming months largely focuses on price and value for money. It’s important that businesses evolve the way they position and market themselves in a way that aligns with current consumer sentiment.”
This comes after the news broke yesterday that Australia would see its first interest rate rise in twelve years, marking a turning point in the upcoming election.
