The Growth D_Stillery, in collaboration with research partner Verve Australia, has released new research identifying the dimensions of premium that matter most to Australians when it comes to food.
The Food D_Stilled Report looks at how the pandemic accelerated a hunger for premium food experiences, as lockdowns and restrictions meant more time at home, elevating food to the centrepiece of daily life.
Director of The Growth D_Stillery Dan Krigstein explained: “The role of food as a way to connect, express creativity, explore, and find enjoyment has been amplified during these challenging times. This has accelerated the trend towards ‘premiumisation’ of food.
“Cost of living pressures have now dealt a blow to household budgets, forcing Australians to make trade-offs in their food behaviours. However despite becoming more price sensitive overall, Australians are willing to spend on their own personal premiums.”
The research reveals that people are finding ways to protect what they consider premium when it comes to food, and prioritising the purchases and moments that matter most to them.
Five dimensions of premium have been identified, these determine the trade-offs people are willing to make across eating experiences and occasions:
Health – Health is wealth and they won’t compromise on nutrition;
Taste – Food should be a pleasure, if it isn’t why bother;
Socialisation – An experience shared is way more valuable;
Convenience – both ‘Ease and Speed’ and ‘Flexibility and Choice’ – If it makes life easier, it’s worth paying for;
Exploration – Trying new things is an experience worth paying for.
The research identifies ways brands can protect their premium by understanding and delivering to these dimensions, to meet the evolving needs and preferences of their target audiences.
News Corp Australia Managing Director National Sales Lou Barrett said: “Understanding the dimensions of premium in food is crucial for brands to connect with consumers effectively. By creating food experiences that cater to the dimensions of premium that resonate with their target audiences, brands can unlock new opportunities and establish stronger connections.”
The Food D_Stilled Report also reveals that Australians are willing to shop around, compare prices, and make trade-offs to maximise the value of their grocery spending. Two in three people are feeling worse off when it comes to their grocery budgets; and 88 per cent are shopping at more than one grocery retailer indicating greater price sensitivity and also an uplift in catalogue shopping.